What Is a PERM Suspension?
PERM, which stands for Program Electronic Review Management, is the essential first step employers must take to sponsor a foreign worker for most employment-based green cards in the United States. The process requires an employer to prove to the Department
of Labor (DOL) that there are no qualified, willing, and available U.S. workers for the position. A suspension means the DOL has temporarily blocked a company, in this case Cognizant, from filing any new PERM applications. The date a PERM application is filed establishes an employee's 'priority date,' which is their place in the long queue for a green card. A suspension, therefore, freezes the ability of new employees to get in that line.
Why Cognizant's Filings Were Halted
The suspension was announced on September 8, 2026, by the U.S. Labor Department's Inspector General, Anthony D'Esposito. The action is part of a broader investigation into alleged fraud and misuse of employment-based immigration programs, including both the H-1B visa and PERM processes. While officials have not disclosed the specific allegations against the New Jersey-headquartered IT giant, the investigation involves the White House Fraud Task Force. The Inspector General's public statements suggest a focus on protecting American workers, indicating the probe is examining whether Cognizant's hiring practices complied with federal regulations. This move signals intensified scrutiny not just on temporary visas, but on the entire pathway to permanent residency for foreign workers.
Who Is Directly Affected by This?
The primary group affected are Cognizant employees who were waiting for the company to begin their green card process. With the suspension in place, Cognizant cannot submit new PERM applications on their behalf, leading to indefinite delays. This is particularly stressful for Indian professionals, who already face decade-long backlogs for green cards. However, it's crucial to understand who is not immediately affected. The suspension does not cancel an employee's existing H-1B visa status. Furthermore, employees who already have an approved PERM certification or a pending or approved I-140 petition (the next step after PERM) are not automatically impacted by this halt on new filings. Their cases remain in the queue.
What Is the 'Latest Development'?
As of now, the latest development is the suspension itself. The U.S. Department of Labor has not publicly announced a timeline for how long the suspension will last, nor have they detailed the full scope of the investigation. The action appears to have been based on whistleblower complaints and is part of a wider probe that also includes another software company, Cloudera. The lack of a defined end date creates a challenging period of uncertainty for both the company and its employees. Analysts note this is a significant escalation in how U.S. authorities are policing employment-based immigration, moving beyond audits to outright suspensions during an investigation.
What Happens Next for Employees?
For employees awaiting a PERM filing, the only path forward is to wait for more information from Cognizant and the Department of Labor. A prolonged suspension could pose a talent retention risk for Cognizant, as some employees might consider moving to other companies to restart their green card process. This development serves as a stark reminder of how dependent the green card journey is on an employer's compliance standing. The broader IT industry is now on high alert, as this action could foreshadow greater scrutiny of immigration-related compliance, including recruitment practices, wage levels, and documentation, for other major firms as well.
