What is PERM and Why It Matters
PERM stands for Program Electronic Review Management, and it's the first major step most employers must take to sponsor a foreign worker for a US Green Card. Essentially, the employer must prove to the Department of Labor (DOL) that there are no qualified,
willing, and available American workers for a specific job. This involves a rigorous and documented recruitment process. Once the DOL certifies a PERM application, the company can petition for an employee's permanent residency. For many Indian tech professionals on temporary visas like the H-1B, a PERM filing is the gateway to a stable future in the United States, as the filing date establishes their place in the long queue for a Green Card.
The Department of Labor's Action
On September 8, 2026, the US Labor Department's Inspector General, Anthony D'Esposito, announced the suspension of Cognizant's ability to file new PERM applications. The action is part of a broader federal investigation into alleged fraud and misuse of employment-based immigration programs, conducted in partnership with the White House Fraud Task Force. While specific allegations against Cognizant have not been publicly detailed, such investigations often focus on whether companies are properly testing the US labor market and complying with wage requirements. The announcement signals increased scrutiny on large IT firms and their immigration practices. The duration of the suspension and the exact number of affected employees have not yet been disclosed.
Impact on Cognizant Employees
The most immediate impact is on Cognizant employees who were waiting for the company to begin their Green Card process. With the suspension, Cognizant cannot submit new PERM applications, effectively pausing the start of their permanent residency journey. This creates significant delays and uncertainty, especially for those on H-1B visas who may be nearing their maximum stay limit, as a timely PERM filing can be crucial for extending their status. It's important to note that the suspension does not automatically cancel existing H-1B visas or previously approved PERM applications and Green Cards. However, it leaves many in a state of limbo, awaiting clarity on when the process can resume.
Broader Industry Context
Cognizant is not alone in facing this level of scrutiny; another software company, Cloudera, was also hit with a PERM suspension. This action is part of a wider trend of the US government increasing its oversight of employment-based visa programs. For years, large IT consulting firms, many with significant roots in India, have been major users of the H-1B and PERM systems to staff their US operations. Federal authorities have been investigating claims of wage undercutting, fraudulent filings, and the potential displacement of American workers across the industry. This move against a major player like Cognizant serves as a strong signal to the entire tech sector that compliance with immigration regulations is being closely monitored.
