What is the PERM process?
PERM, or Program Electronic Review Management, is the system the US Department of Labor (DOL) uses for labor certification. It is typically the first major step an employer must take to sponsor a foreign worker for permanent residency (a Green Card).
Before filing, the employer must prove to the DOL that there are no qualified, willing, and available U.S. workers for the position. They must also show that hiring a foreign worker will not negatively impact the wages and working conditions of American workers. Unlike a temporary H-1B visa, the PERM process is specifically for the permanent Green Card path.
Why was Cognizant suspended?
The suspension was announced on September 8, 2026, by the Labor Department's Inspector General, citing an investigation into alleged fraud and misuse of employment-based immigration programs. The probe, which is being conducted with the White House Fraud Task Force, follows whistleblower complaints regarding the company's H-1B and PERM visa activities. While officials have mentioned cracking down on threats to American workers, the specific allegations against Cognizant have not been publicly disclosed. The number of affected applications and the exact duration of the suspension also remain unknown, though similar action against another company, Cloudera, came with a 180-day suspension.
Who is immediately affected by this?
The primary group affected are Cognizant employees who were waiting for the company to file a new PERM application on their behalf. This action freezes their ability to start the Green Card process and secure a priority date, which determines their place in the long queue for permanent residency. This is especially critical for employees from India, who already face severe backlogs. The suspension also creates a major challenge for H-1B visa holders nearing their six-year limit, as a pending or approved PERM is often required to get further extensions. However, the suspension does not automatically cancel an employee's existing H-1B visa status or a previously approved PERM or Green Card.
What has Cognizant said?
As of early reports following the announcement, Cognizant had not issued an immediate public comment on the suspension. The action was announced by the Department of Labor Inspector General on social media. Companies in this situation typically work with legal counsel to understand the full scope of the government's investigation and to formulate a response. The lack of specific details from the government about the allegations makes it difficult for the company to provide a detailed public rebuttal. Employees with pending cases are being advised to seek clarity directly from the company or its immigration counsel.
What are the potential consequences?
A prolonged suspension could pose a significant talent retention risk for Cognizant. Employees whose path to permanent residency is stalled may consider moving to other companies to restart their Green Card process. For the broader IT industry, this signals increased scrutiny of immigration practices beyond just H-1B visas, extending to the entire Green Card pathway. The investigation into Cognizant, a U.S.-headquartered and Nasdaq-listed company, suggests that federal authorities are taking an aggressive stance on compliance, which could lead other major tech employers to audit their own recruitment and wage practices.
