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

The US Department of Labor has suspended Cognizant’s PERM filings, marking a major development in the ongoing crackdown on alleged visa 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 warned that officials were closely investigating possible fraud involving H-1B and PERM programs.

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 approval from the Department of Labor to sponsor foreign workers for permanent residency.

Before applying, companies generally have to show that there are no qualified and available US workers for the particular job and that hiring a foreign worker will not negatively affect the wages or working conditions of American 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 means Cognizant’s ability to move forward with new PERM filings is effectively blocked while the investigation continues. However, it does not automatically cancel existing approvals or suspend H-1B visas.

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 the Labor Department continues its aggressive approach, other IT companies could also face greater scrutiny over their H-1B and PERM practices.

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