A Sudden Halt to the Green Card Pipeline
On September 8, the US Department of Labor's Inspector General announced the suspension of Cognizant's ability to file new PERM (Program Electronic Review Management) applications. This action was taken amid a broader federal investigation into alleged
fraud and misuse of employment-based immigration programs. While authorities have not disclosed the specific allegations, duration, or full scope of the suspension, the move effectively freezes the first and most critical step in the green card process for many of the company's foreign national employees. The investigation is being conducted in coordination with the White House Fraud Task Force, signaling a high level of scrutiny.
What is PERM and Why Is It So Crucial?
For many Indian tech professionals in the US, the PERM process is the gateway to permanent residency, commonly known as a green card. It is entirely separate from the H-1B temporary work visa. An employer must first go through the PERM labor certification to prove to the Department of Labor that there are no able, willing, and qualified US workers for a specific job. They must also show that hiring a foreign worker will not negatively impact the wages and working conditions of American workers. Only after a PERM application is certified can the company proceed with the next stages of the green card petition. For the employee, the date the PERM is filed establishes their 'priority date'—their place in the long queue for a green card.
The Human Cost: Thousands of Dreams in Limbo
The immediate impact of the suspension falls squarely on Cognizant's employees, a significant number of whom are Indian nationals on H-1B visas. For those waiting for the company to begin their green card process, this suspension creates profound uncertainty. They cannot secure a priority date, and their path to permanent residency is now indefinitely stalled. While the suspension does not cancel existing H-1B visas or previously approved green cards, it creates a serious retention risk for Cognizant. Talented professionals facing long delays might be forced to consider moving to other companies to secure their future in the US.
A Warning Shot for the Entire IT Industry
This action against Cognizant, a US-headquartered firm with a massive presence in India, is being interpreted as a major warning to the entire IT services industry. Companies like TCS, Infosys, and Wipro have long relied on the same employment-based immigration routes to staff projects in the US. The investigation, which began after whistleblower complaints, is looking into allegations of visa fraud, wage issues, and worker exploitation. The public and aggressive stance taken by the Department of Labor suggests that scrutiny is intensifying beyond just H-1B visas to the entire H-1B-to-green-card pathway. Other companies are now on notice that their compliance with recruitment and wage laws will likely face a much closer look.
