US Suspends Cognizant’s PERM Filings, Who’s Next?

Article by Satya Published on: 9:33 pm, 8 September 2026

The US Department of Labor has suspended Cognizant’s PERM filings, marking a major development amid increased scrutiny of alleged fraud and misuse of employment-based immigration programs.

US Labor Department Inspector General Anthony D’Esposito posted on X a while ago. He said Cognizant’s PERM filings had been suspended and added that officials were closely investigating possible fraud involving H-1B and PERM programs.

Fighting fraud is a TEAM SPORT.@Sonderling47 and I are for real.@Cognizant’s PERM filings are suspended. @DOLOIG is on the hunt.

Threats to American workers will NOT be tolerated.

Alongside @WHFraudTF, we’re following facts, fraud and finances.

Handcuffs await.
— Inspector General Anthony D'Esposito (@USLaborIG) September 8, 2026

He also said the investigation is being carried out along with the White House Fraud Task Force and other officials, adding that those found involved in fraud could face serious action.

What is PERM?

PERM is the process through which US employers seek labor certification from the Department of Labor as part of sponsoring foreign workers for permanent residency.

Before applying, companies generally have to show that there are not sufficient qualified and available US workers for the particular job and that hiring a foreign worker will not adversely affect the wages or working conditions of similarly employed US workers.

The process includes advertising the job, conducting recruitment and filing the required application with the Labor Department.

Once PERM is approved, the employer can move ahead with the next steps for an employment-based green card.

The suspension could affect the processing of Cognizant-sponsored PERM applications. However, the exact scope and duration of the suspension have not yet been publicly detailed by the Labor Department. The announcement does not indicate that Cognizant’s H-1B program has been suspended.

Bigger impact on Indian IT companies?

The action against Cognizant could have wider implications for the Indian IT industry.

Large companies such as TCS, Infosys, Wipro, HCL and Cognizant have historically been major users of the H-1B visa system.

If US authorities continue to intensify their scrutiny of employment-based immigration programs, other IT companies could also face greater scrutiny over their H-1B and PERM practices.

The latest action indicates that US authorities are taking a much closer look at employment-based immigration programs. For companies and foreign workers, the investigation could become an important development to watch in the coming months.