What Exactly Happened?
On September 8, 2026, the U.S. Department of Labor's (DOL) Inspector General, Anthony D'Esposito, announced that Cognizant's ability to file new PERM applications had been suspended. This action is part of an ongoing investigation into alleged fraud and
misuse of employment-based visa programs. The probe involves the DOL's Office of Inspector General and the White House Fraud Task Force. Officials have not yet publicly disclosed the specific allegations, the expected duration of the suspension, or the total number of employees affected. Software company Cloudera was also named as facing a similar PERM suspension.
Understanding the PERM Process
PERM, which stands for Program Electronic Review Management, is a crucial first step for most employment-based green card applications in the U.S. Before an employer can sponsor a foreign worker for permanent residency, it must prove to the DOL that there are no able, willing, and qualified U.S. workers available for the job. This process is designed to ensure that hiring foreign talent does not negatively impact the job opportunities or wages of American workers. The date a PERM application is filed typically establishes the employee's "priority date," which is effectively their place in the long queue for a green card, a detail of particular importance for workers from countries with significant backlogs, like India.
Who Is Immediately Affected?
The suspension's primary impact is on Cognizant's ability to start new green card processes for its employees. Those who were waiting for the company to file their PERM application are now in a state of limbo, as they cannot secure a priority date and move forward. However, the action does not automatically cancel an employee's existing H-1B visa status, which is a temporary work authorization and separate from the permanent residency process. Employees who already have an approved PERM certification or are further along in the green card pipeline are not believed to be directly impacted by the suspension of new filings.
Why Is This Happening Now?
This move is part of a broader crackdown on alleged visa fraud and misuse by U.S. authorities. The investigation follows whistleblower complaints regarding some of the largest corporate users of the employment visa system. The Labor Department Inspector General has been vocal about protecting American workers and has warned that the investigation is looking into fraudulent filings, wage issues, and other compliance failures. While no criminal charges have been filed against Cognizant, the assertive public announcement signals a period of heightened scrutiny for the entire IT services industry regarding its immigration and hiring practices.
What Are the Broader Implications?
For Cognizant, a prolonged suspension could pose a significant talent retention risk, as employees stuck in the green card queue might look for opportunities at other companies. For the wider IT industry, which relies heavily on foreign talent, this serves as a major warning. Experts suggest this could lead to more stringent audits and compliance checks across the board, potentially affecting everything from recruitment practices to wage documentation. The focus on PERM extends scrutiny beyond the well-known H-1B visa program to the entire pathway from temporary worker to permanent resident.
