Cognizant’s PERM Filings Suspended Amid Immigration Fraud Probe

Cognizant’s PERM Filings Suspended Amid Immigration Fraud Probe

On September 8, 2026, the U.S. Department of Labor took a significant action, suspending new PERM labor certifications for the technology company Cognizant. This suspension halts the company’s ability to initiate employer-sponsored green card applications while investigators look into claims of immigration fraud. The move is part of a larger, nationwide examination of H-1B visa and PERM practices that began earlier in the year.

The Labor Department’s Inspector General, Anthony D’Esposito, announced the suspension, noting that investigators are collaborating with the White House Fraud Task Force. While the specific allegations have not been made public, the investigation is focused on potential fraud and abuse within the visa and labor certification systems. The duration of this suspension has also not been specified.

Understanding the PERM Process and the Impact of Suspension

The PERM (Program Electronic Review Management) labor certification is a critical initial step for many individuals seeking an employment-based green card in the United States. By suspending Cognizant’s ability to file new PERM applications, the Department of Labor is effectively pausing the start of new green card sponsorship cases for employees at the company. This action directly affects workers who have not yet reached this stage in their permanent residency process.

It is important to note that this suspension does not revoke existing H-1B visas. Current employees holding H-1B status are not losing their work authorization solely because of this action. Similarly, PERM certifications that were already approved or applications filed before the September 8, 2026, suspension are generally expected to remain valid, unless further action is taken by the department.

Differentiating the Effects on Workers

The impact of the PERM suspension varies depending on an employee’s current stage in the green card application process.

Worker’s Case Stage	Reported Effect
PERM filed and certified before September 8, 2026	The certification is not described as losing its status.
PERM already approved or filed	The case is reported to remain in place unless later action says otherwise.
PERM not yet filed	A new employer-sponsored green card case cannot move forward during the suspension.
Current H-1B employment	The suspension alone does not revoke H-1B work authorization.

Workers who were still awaiting their employer to begin the labor certification stage face the most immediate delay. For those who have already had their PERM certifications approved or applications filed, their established priority dates generally offer some protection against the immediate effects of this filing freeze.

Undisclosed Allegations and Broader Scrutiny

The Labor Department has not yet detailed the specific allegations of fraud and abuse that led to the suspension of Cognizant’s PERM filings. The investigation, which involves multiple government agencies, is part of a wider effort to address alleged visa fraud, labor certification misuse, and practices that may harm American workers. Data from the USCIS Employer Data Hub indicated that Cognizant had 3,510 H-1B petition approvals through June 30, 2026, highlighting the company’s significant presence in the H-1B program.

This enforcement action is not isolated to Cognizant; Cloudera also reportedly faced a similar PERM suspension as part of the same sweep. This broader scrutiny could prompt other major IT contractors, particularly those with a large Indian workforce, to review their recruitment, wage, and compliance practices. Employees who rely on the H-1B to green card pathway may experience extended delays if their employers are unable to file the initial PERM labor certification. While H-1B work authorization remains unaffected by this specific action, the path to permanent residency can be stalled at its earliest stages.

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