The US Labor Department announced from Washington that Cognizant’s new PERM filings had been suspended. The report was published at 3:24 AM IST on September 9 as officials investigated alleged fraud involving employment-based immigration programmes.

The United States has suspended Cognizant’s new permanent labor certification filings amid an investigation into alleged misuse of employment-based immigration programmes.

US Department of Labor Inspector General Anthony D’Esposito announced the action on Tuesday, saying Cognizant’s PERM filings had been halted. PERM certification is generally the first major stage through which an American employer sponsors a foreign worker for employment-based permanent residency.

The Labor Department also suspended filings by software company Cloudera. D’Esposito said the investigation was being conducted in coordination with the White House Fraud Task Force and other federal officials.

The suspension prevents Cognizant from proceeding with new PERM applications while the inquiry continues. However, it does not establish that the company committed fraud. The specific allegations, number of applications affected and expected duration of the suspension had not been publicly detailed at the time of reporting.

Cognizant had not immediately issued a detailed public response to the reported action. The company must be given an opportunity to respond, and any allegation should remain clearly identified as unproven unless supported by a final official finding.

The move could affect foreign employees who were expecting Cognizant to begin new employer-sponsored green card cases. Without an approved PERM labor certification, an employer generally cannot proceed to the later stages of many employment-based permanent residency applications.

The reported action applies to new PERM filings. It does not automatically cancel previously approved labor certifications, invalidate existing green cards or revoke employees’ lawful immigration status.

It also does not amount to a suspension of Cognizant’s H-1B programme. H-1B is a temporary work-visa category, while PERM is a separate labor certification process commonly used in employment-based green card sponsorship.

Workers whose cases have already been filed or approved should avoid assuming that their applications have been cancelled. The effect may differ depending on the stage of each case, and affected employees may need case-specific guidance from their employer or a qualified US immigration attorney. Reports indicate that Cognizant will be unable to submit fresh PERM applications until the Labor Department completes its investigation.

PERM, formally known as Program Electronic Review Management, is administered by the US Department of Labor as part of the employment-based immigration system.

Before sponsoring a foreign worker, an employer generally must test the American labor market and demonstrate that there are no qualified, willing and available US workers for the position. The company must also show that employing a foreign worker will not adversely affect local wages or working conditions.

After receiving labor certification, the employer may proceed with an immigrant petition through US Citizenship and Immigration Services. The employee may later apply for permanent residency when a visa number becomes available and other legal requirements are satisfied.

Because PERM is only one stage in a longer process, describing the action as a suspension of all Cognizant “green cards” would be misleading. The suspension concerns the company’s ability to advance new filings at the labor-certification stage.

The action comes amid increased scrutiny of the H-1B and PERM systems under the Trump administration. Federal authorities launched a broader investigation in July into alleged fraud, wage-related violations and practices that could disadvantage American workers.

Cognizant was founded in Chennai in 1994 and is now headquartered in Teaneck, New Jersey. It remains a major technology employer in the United States, although its reliance on H-1B petitions has declined compared with earlier years.

USCIS data cited in the original report showed that Cognizant had received approvals for 3,510 H-1B petitions as of June 30, compared with 9,413 in 2020. Those figures provide context but are separate from the PERM suspension.

The inclusion of Cloudera signals that the investigation is not limited to one employer. The wider concern for Indian technology professionals is whether enforcement action will expand to additional companies or produce more demanding compliance checks.

For now, the suspension affects new Cognizant PERM filings while the inquiry remains open. Further details from the Labor Department and a formal response from Cognizant will be essential to establish the scope, legal basis and potential duration of the action.