What Exactly Happened?
On September 8, 2026, the U.S. Department of Labor's Inspector General, Anthony D'Esposito, announced that Cognizant's ability to file for PERM (Program Electronic Review Management) labor certifications has been suspended. This action effectively pauses
the company's ability to start the green card process for its employees. The PERM process is the mandatory first stage for most employer-sponsored green cards, where a company must prove to the government that there are no qualified, willing, and available U.S. workers for a specific role. This suspension is part of a broader investigation into alleged fraud and misuse of employment-based immigration programs, conducted in partnership with the White House Fraud Task Force. The government has not yet publicly stated how long the suspension will last.
Why Was Cognizant Penalized?
The specific allegations against Cognizant have not been officially disclosed. The suspension is linked to an ongoing investigation into potential fraud related to both the H-1B visa and PERM programs, which reportedly began after whistleblower complaints. The Inspector General's public statements have been stern, warning that "Threats to American workers will NOT be tolerated" and mentioning that the investigation is following "facts, fraud and finances." This suggests the probe could be examining whether the company properly tested the U.S. labor market before hiring foreign workers or if there were discrepancies in wages and job classifications. The action against Cognizant and a similar suspension for software company Cloudera signal intensified government scrutiny of how large tech employers use immigration pathways.
Who Is Most Affected by This?
The suspension directly impacts Cognizant employees who are waiting for the company to begin their green card process. For these individuals, the journey to permanent residency is now on hold indefinitely, as they cannot secure a "priority date," which marks their place in the long green card queue. This is especially critical for Indian professionals, who already face decade-long backlogs. However, the suspension does not automatically cancel an employee's existing H-1B visa status or employment authorization. It also does not invalidate PERM applications that were already certified or green cards that have already been issued. The primary group in limbo are those who were expecting a new PERM application to be filed on their behalf in the near future.
What Is Cognizant's Position?
As of early September 2026, Cognizant had not issued a formal public response to the suspension announcement. The timing is awkward for the New Jersey-headquartered company, which has a massive workforce of over 250,000 in India and has historically been a major user of U.S. employment visas. The investigation puts the company in a difficult position, potentially creating a talent retention risk if employees in the green card queue become anxious about the delays and consider moving to other companies. The lack of a clear timeline or specific details from the government adds to the uncertainty for both the company and its workforce. Affected employees are advised to seek clarity directly from Cognizant's immigration team about the status of their individual cases.
What Are the Broader Implications?
This move is seen by many as a significant escalation in the U.S. government's crackdown on alleged misuse of visa programs, extending scrutiny beyond the H-1B visa to the entire green card pathway. For the wider IT industry, particularly large consulting firms that rely on a global talent pool, this serves as a major warning. Experts suggest it could lead to much stricter compliance checks on recruitment practices, wage levels, and documentation across the board. It may also push companies to accelerate local hiring in the U.S. to reduce their reliance on and exposure to the complexities of the immigration system. For thousands of Indian tech professionals, the suspension is a stark reminder of how vulnerable their long-term career paths are to shifting enforcement priorities in the United States.
