What is a PERM Suspension?
PERM, or Program Electronic Review Management, is the process where a US employer proves to the Department of Labor (DOL) that there are no available, qualified American workers for a specific job before hiring a foreign national for it permanently. It’s
the foundational step for most employment-based green cards. A suspension means the DOL has paused a company's ability to submit new PERM applications, typically while it conducts an audit or investigation. On September 8, 2026, the DOL's Inspector General announced that Cognizant's PERM filings were suspended amid a federal probe into alleged fraud and misuse of employment-based immigration programs. This action is part of a broader investigation that began in July 2026 following whistleblower complaints.
Why Did This Happen at Cognizant?
The Inspector General's announcement was pointed, stating that "Threats to American workers will NOT be tolerated" and was made in coordination with the White House Fraud Task Force. While official documents have not detailed the specific allegations against Cognizant, the investigation is reportedly looking into fraudulent visa applications and wage-related abuses. Such audits often scrutinize whether a company's recruitment practices are genuinely testing the US labor market and whether wages for foreign workers comply with regulations. This suspension signals that federal authorities are taking a hard look at the company's compliance with immigration laws. As of now, no criminal charges have been filed.
Who is Immediately Affected?
The suspension directly impacts employees who were waiting for Cognizant to begin their green card process. Without the ability to file a new PERM application, these employees cannot secure a priority date—their place in the long green card queue. This is especially critical for Indian nationals, who already face decade-plus backlogs. The suspension does not, by itself, cancel an employee's existing H-1B visa status or employment authorization. It also does not invalidate PERM applications that were already certified or I-140 petitions that have been approved. However, new applications are frozen until the suspension is lifted.
The Impact on Green Card and H-1B Timelines
For many, this is more than just a procedural pause; it's a significant setback. A delay in filing a PERM application means a later priority date, extending the already lengthy wait for a green card. This can also create complications for H-1B holders who are nearing their six-year maximum stay. US rules often allow for H-1B extensions beyond six years if a PERM application has been filed at least 365 days prior. An inability to start the PERM process could jeopardize this extension eligibility for some employees, creating immense pressure as their visa deadlines approach.
What is the Current Status?
As of early September 2026, the suspension is active, and there is no official timeline for how long it will last. The DOL has not publicly stated the full scope of the suspension or what it will mean for PERM applications that were already submitted but not yet certified. The tech company Cloudera was also named as having its PERM filings suspended under similar circumstances. The aggressive language from the Inspector General, including references to "handcuffs," suggests a serious enforcement action, and experts believe it could signal greater scrutiny of the IT services industry as a whole.
