What Exactly Was Suspended?
The suspension, announced on September 8, 2026, by the Labor Department's Inspector General, specifically targets Cognizant's ability to make new filings under the Program Electronic Review Management (PERM) system. This isn't a blanket ban on all immigration
activities. The action stems from an ongoing investigation into alleged fraud and misuse of employment-based immigration programs. While the government has not released the specific allegations, the probe involves whistleblower complaints and is being conducted in coordination with the White House Fraud Task Force. Another software company, Cloudera, was also named in the announcement.
Understanding the PERM Process
For many foreign professionals, particularly those on H-1B temporary visas, the PERM process is the critical first step toward obtaining an employment-based green card and securing permanent residency in the U.S. Unlike a visa application filed by an individual, the PERM application is filed by the employer. The company must first conduct a rigorous recruitment process to prove to the Department of Labor that there are no qualified, willing, and available U.S. workers for the specific job. They must also demonstrate that hiring a foreign worker will not negatively impact the wages and working conditions of American workers. Only after the Labor Department certifies the PERM can the company proceed with the next stages of the green card petition.
Who Is Most Affected by the Suspension?
The immediate impact is on Cognizant employees who were expecting the company to start the green card process for them. With new PERM filings on hold, they cannot begin their journey to permanent residency or establish a "priority date," which marks their place in the long green card queue. This is especially significant for Indian professionals, who already face severe backlogs for employment-based green cards. The suspension does not, by itself, cancel an employee's existing H-1B visa status or revoke green cards that have already been issued. However, it creates major delays and uncertainty for those whose long-term plans depend on company sponsorship. For Cognizant, it represents a significant operational hurdle, freezing its ability to move forward with permanent hiring plans for a portion of its valued global talent pool.
Why Is This Happening Now?
This action comes amid a broader crackdown by U.S. authorities on the alleged misuse of employment-based immigration programs. IT services companies have faced particular scrutiny over their reliance on foreign workers. The investigation into Cognizant reportedly follows whistleblower complaints regarding its H-1B and PERM programs. The public announcement by the Labor Department's Inspector General on social media, with a warning that "handcuffs await," signals a more aggressive enforcement posture. While the specific allegations against Cognizant are not yet public, common PERM compliance issues can include mismatches in wage levels or gaps in recruitment documentation.
What Happens Next?
The duration of Cognizant's PERM suspension has not been announced, and it may depend on the outcome of the federal investigation. The company had not issued a formal public response as of early September 2026. Employees whose green card processes have not yet started are in a waiting pattern. They cannot independently file a PERM application, as it is an employer-driven process. This suspension serves as a major signal to other large employers to review their own immigration compliance, particularly regarding recruitment records and wage determinations. For now, thousands of tech workers at one of the largest IT employers are left to navigate the uncertainty surrounding their future in the U.S.
