The United States Department of Labor has suspended new PERM filings by Cognizant creating fresh uncertainty for foreign employees including a large number of Indian technology professionals seeking employer-sponsored US Green Cards.

The action comes against a federal investigation into alleged fraud and possible misuse of employment-based visa programmes. Cognizant is one of the major H-1B sponsors in the United States and is now facing increased scrutiny from US authorities over its immigration and recruitment practices.

Why has the US suspended Cognizant's Green Card filings?

US Department of Labor Inspector General Anthony D'Esposito announced that Cognizant's PERM filings have been suspended whilst authorities investigate alleged irregularities related to employment visa programmes.

The investigation is being carried out with the involvement of the White House Fraud Task Force and other government officials. Authorities have not publicly disclosed the allegations, the number of impacted employees or how long the suspension will last.

Software company Cloudera has also faced a suspension of PERM filings as part of the investigation.

What is PERM and why is it important?

PERM (Program Electronic Review Management) is an important stage in the US employment-based Green Card process.

Before sponsoring certain foreign employees for permanent residency, an employer generally has to obtain labour certification from the Department of Labour that there are no qualified and available US workers for the position and that hiring the foreign employee will not negatively impact on wages and working conditions of US workers.

PERM certification allows an employer to proceed with the employment-based Green Card sponsorship.

Therefore, a suspension of new PERM filings can be significant for employees waiting for their employer to start or advance their Green Card sponsorship.

What does the Cognizant PERM suspension mean for Indian workers?

The development is particularly important for Indian IT professionals as Indian nationals represent a major share of workers using the US employment-based immigration system.

Cognizant was founded in Chennai and has become one of the largest technology services companies operating in the US. According to recently reported USCIS data, Cognizant had 3,510 approved H-1B petitions as of June 30, 2026.

For employees pursuing permanent residency through Cognizant, the suspension can mean:

• New Green Card sponsorship cases may be delayed.
• Employees who were expecting their employer to start the PERM process may be concerned.
• Long-term US immigration plans may be impacted if the suspension persists.
• Employees may have to wait for further clarification from Cognizant and US authorities.
• The development can increase concerns of Indian IT professionals already facing lengthy employment-based Green Card backlogs.
• However, the suspension does not mean that all existing Green Cards or H-1B visas have been automatically cancelled. There are reports indicating that the action specifically concerns new PERM filings.

Is Cognizant's H-1B visa programme also suspended?

The PERM suspension should not be automatically interpreted as cancellation of Cognizant's existing H-1B visas.

PERM and H-1B are separate elements of the US employment-based immigration system. PERM is primarily linked to the labour certification for certain employment-based Green Card applications and the H-1B programme allows US employers to employ qualified foreign workers in specialty occupations.

The latest news specifically identifies the suspension of new PERM filings. The broader investigation, however, concerns allegations over employment visa programmes which is why Indian technology workers are keeping a close eye on the situation.

Why is this important for Indian IT professionals?

Indian technology professionals have traditionally been amongst the largest users of the H-1B visa programme in the US. Major Indian IT companies also rely heavily on employment-based immigration to support their US operations.

The Cognizant investigation can therefore have implications beyond one company if US authorities increase scrutiny of immigration compliance across the technology sector.

Companies can be subjected to closer examination of areas such as recruitment practices, wage compliance, employee documentation and procedures used for sponsoring foreign workers.

Major Indian IT companies including TCS, Infosys, Wipro and HCLTech could be watching the developments closely, although there is no indication that the Cognizant action automatically applies to those companies.

Cognizant's US hiring plans

The development comes at an interesting time for Cognizant.

The company recently announced plans to strengthen its US workforce by hiring 1,500 American college graduates. The timing has drawn attention as the Green Card filing suspension comes amidst the administration's broader push to scrutinise employment visa programmes and protect opportunities for US workers.

What should Cognizant employees do now?

Employees affected by the PERM suspension should avoid making assumptions about the status of their individual immigration cases.

Workers should:

• Check their current PERM and Green Card case status with their employer's immigration team.
• Confirm whether their case has already been filed or was waiting for filing.
• Speak with a qualified US immigration attorney if the suspension affects their long-term immigration plans.
• Monitor announcements from the US Department of Labour and Cognizant.
• Keep copies of immigration and employment documents for their records.