The United States has suspended new green-card related filings by IT services company Cognizant as authorities investigate possible fraud and misuse of employment-based immigration programmes.
The US Department of Labour has stopped Cognizant from submitting new applications under the Permanent Labour Certification (PERM) programme while the investigation continues. Software company Cloudera has also faced a similar suspension.
The move is significant for Cognizant because PERM is an important step for foreign workers seeking an employment-based green card in the US. The process generally requires an employer to show that there are no qualified US workers available for a particular job and that hiring a foreign worker will not negatively affect American workers’ wages and working conditions.
The latest action does not mean that Cognizant employees who already have approved applications will lose their immigration status. The suspension is focused on new PERM filings, meaning workers who have not yet reached that stage could face delays in starting their green-card process. Existing approvals are not automatically cancelled by the decision.
The US Labour Department’s Inspector General Anthony D’Esposito announced the action as part of a broader investigation into possible fraud involving the H-1B and PERM visa programmes. The investigation is being conducted with the White House Fraud Task Force and other federal authorities.
US officials have not publicly provided detailed findings against Cognizant, and the investigation is still underway. The allegations should therefore not be treated as established wrongdoing by the company.
The action comes as the Trump administration has stepped up scrutiny of employment-based immigration. US authorities have been examining whether companies are using visa programmes in ways that could disadvantage American workers or avoid labour and wage requirements.
The development for Cognizant is particularly important because the company has historically been a major employer and sponsor of foreign technology professionals in the US.
Cognizant was founded in Chennai in 1994 and later moved its headquarters to New Jersey. The company has a large US workforce and has been one of the major users of the H-1B visa programme, which allows American employers to hire foreign professionals for specialised jobs.
According to data cited in reports, Cognizant had received approval for 3,510 H-1B petitions as of June 30, 2026. The figure was substantially higher in 2020, when the company received approval for 9,413 petitions.
The latest suspension is therefore likely to attract attention among Indian technology professionals working in the US. Many Indian IT workers enter the country through the H-1B route and later depend on employer sponsorship for permanent residency.
A delay in PERM filings could affect employees who are waiting for their employers to begin the green-card process. However, the suspension does not mean that all Cognizant employees on H-1B visas have been prevented from working in the US.
The distinction between H-1B visas and PERM applications is important. The H-1B is a temporary work visa, while PERM is part of the process that can eventually lead to an employment-based green card. A suspension of new PERM filings therefore affects the permanent-residency pathway rather than automatically ending an employee’s existing work authorisation.
The action against Cognizant also highlights the wider pressure facing India’s IT industry in the US. Companies such as TCS, Infosys, Wipro and HCL Technologies have significant American operations and employ large numbers of Indian professionals.
While the latest order is directed at Cognizant and Cloudera, it has raised questions about whether US authorities could increase scrutiny of other companies that rely heavily on foreign-worker programmes.
The investigation is part of a broader US effort to tighten enforcement around employment-based immigration. Authorities have argued that programmes such as H-1B and PERM should be used to fill genuine skill shortages rather than replace American workers or put downward pressure on wages.
These tighter checks for IT companies could mean greater compliance requirements and closer examination of recruitment, wages, job descriptions and labour-certification applications.
The effect on green-card timelines is of immediate concern. The US employment-based immigration system already involves long waiting periods for many Indian nationals. Any pause at the PERM stage could add further uncertainty for employees hoping to secure permanent residency.
At the same time, it is too early to know how long the Cognizant suspension will remain in place. The Labour Department has not indicated when its investigation will be completed.
The company-specific action also comes at a sensitive time for the Indian IT sector, with US immigration policy becoming an increasingly important business issue. Changes to H-1B rules, visa costs and green-card procedures can directly affect how technology companies recruit and deploy skilled workers in their largest overseas market.
The key impact is straightforward: Cognizant cannot file new PERM applications while the investigation continues. Existing approvals are not automatically cancelled, and the action should not be interpreted as a blanket suspension of Cognizant’s H-1B workers.
The outcome of the investigation will determine what happens next. Until then, Cognizant’s employees seeking permanent residency, along with the wider Indian IT industry, will be watching closely as Washington continues its tougher approach to employment-based immigration.