USA

US Suspends Cognizant’s PERM Applications Amid Fraud Investigation

09 September 2026 21:09 PM

NEWS DESK

The US Department of Labor has suspended the PERM applications of Indian IT services company Cognizant amid a nationwide investigation into alleged fraud involving the H-1B visa and foreign-worker programmes.

PERM, or Program Electronic Review Management, is a key step for employers seeking to permanently hire foreign workers in the United States. Its approval allows eligible workers to move forward with the employment-based green card process.

Labor Department Inspector General Anthony D’Esposito said Tuesday that PERM applications filed by Cognizant and cloud software company Cloudera had been suspended following an investigation conducted with the White House anti-fraud task force and other government officials.

D’Esposito said investigators were reviewing information, evidence of alleged fraud and financial transactions. The Labor Department said Cognizant will not be allowed to file new PERM applications until the investigation into alleged fraud involving the H-1B and PERM programmes is completed.

“Threats to American workers will not be tolerated,” D’Esposito said, stressing that the department was working to combat fraud.

Cognizant is one of the largest H-1B sponsors in the US. According to US Citizenship and Immigration Services data, 3,510 of the company’s H-1B petitions had been approved as of June 30, compared with 9,413 in 2020.

Founded in Chennai in 1994, Cognizant is now headquartered in Teaneck, New Jersey. The company provides IT and technology services.

The move could lead to increased scrutiny of other major Indian IT companies, including Tata Consultancy Services, Infosys, Wipro and HCL, which also rely on H-1B visas and the PERM process to employ foreign workers in the US.

Cognizant is also facing a separate discrimination case in the US, in which a federal jury found the company liable for discriminating against non-Indian employees.

However, the suspension of its PERM applications does not mean the allegations of fraud have been proven. The matter remains under investigation.

The Trump administration launched the nationwide probe in July to examine alleged abuse of programmes used to bring foreign workers to the US. Officials are reviewing applications, records and financial transactions as part of the investigation.

PERM applications suspend