What Exactly Happened?
On September 8, 2026, the U.S. Department of Labor's (DOL) Inspector General, Anthony D'Esposito, announced the suspension of Cognizant's Permanent Labor Certification (PERM) filings. This action is part of a broader investigation into potential fraud
and misuse of employment-based immigration programs. The investigation is being conducted in coordination with the White House Fraud Task Force. While the announcement was significant, officials have not publicly detailed the specific allegations against Cognizant, the exact number of employees affected, or how long the suspension will last.
Unpacking the Jargon: What is PERM?
PERM, which stands for Program Electronic Review Management, is the critical first step for most employment-based green card applications in the United States. 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 position. This involves a mandated recruitment process, including advertising the job. If the DOL is satisfied, it certifies the PERM application, allowing the employer to proceed to the next stages with U.S. Citizenship and Immigration Services (USCIS). The date the PERM application is filed typically establishes the employee's 'priority date,' which is their place in the long queue for a green card, a crucial factor for applicants from backlogged countries like India.
Why Was Cognizant's Program Suspended?
The suspension is tied to a federal investigation into potential fraud, with Inspector General D'Esposito stating that "Threats to American workers will NOT be tolerated." While specific charges have not been announced, such investigations often focus on whether a company conducted its recruitment of U.S. workers in good faith and complied with all regulations. Another software company, Cloudera, faced a similar 180-day suspension earlier in 2026 following allegations that it discriminated against U.S. workers during recruitment. These actions suggest heightened government scrutiny of the immigration and recruitment practices of large companies that hire significant numbers of foreign workers.
The Immediate Impact on Employees
The suspension's primary effect is that Cognizant cannot currently file new PERM applications. This directly impacts employees who were expecting the company to begin their green card process. For them, it means a delay in obtaining a priority date, which can significantly extend their wait for permanent residency. The action does not, by itself, cancel an employee's existing H-1B visa status or an already approved PERM or I-140 petition. However, for some H-1B workers approaching their six-year maximum stay, the inability to start the PERM process in a timely manner could create complications for extending their status.
A Sign of Broader Scrutiny?
The move against Cognizant, a U.S.-headquartered firm with a massive workforce in India, is seen by some industry watchers as a signal of increased enforcement that could extend beyond just H-1B visas to the entire green card pathway. It raises questions about whether other major IT service companies could face similar audits and compliance checks on their recruitment and documentation practices. The investigation highlights a growing focus from U.S. authorities on ensuring that employment-based immigration programs are not being misused to the detriment of domestic workers. This could lead to more stringent compliance requirements for all companies in the sector, potentially slowing down processing times across the board.
