- By Vaidika Thapa
- Wed, 09 Sep 2026 10:36 AM (IST)
- Source:JND
- Cognizant's new green card filings suspended by US Labour.
- Action follows investigation into alleged visa fraud by company.
- Impacts foreign workers seeking employment-based green cards.
The US Department of Labour has suspended Cognizant, a multinational technology services and consulting company’s ability to file new green card sponsorship applications. The development comes as the company faces an investigation into alleged visa fraud and implies that Cognizant cannot start new PERM labour certification cases while the investigation is ongoing.
What Happened To Cognizant?
Cognizant, which was founded in Chennai in 1994 and is now headquartered in the US, is one of the largest users of the H-1B visa programme in corporate America. The US Department of Labour has suspended the company’s ability to file new PERM applications. PERM stands for Program Electronic Review Management, which is the electronic system used to obtain a Permanent Labour Certification. US employers need to complete this process before sponsoring a foreign worker for an employment-based green card.
Announcing the move, Labour Department Inspector General Anthony D’Esposito wrote on X, “Threats to American workers will NOT be tolerated. Alongside @WHFraudTF, we’re following facts, fraud and finances. Handcuffs await.”
Fighting fraud is a TEAM SPORT.@Sonderling47 and I are for real.@Cognizant’s PERM filings are suspended. @DOLOIG is on the hunt.
— Inspector General Anthony D'Esposito (@USLaborIG) September 8, 2026
Threats to American workers will NOT be tolerated.
Alongside @WHFraudTF, we’re following facts, fraud and finances.
Handcuffs await.
ALSO READ: Trouble For Tech Workers? Trump Govt Probes Cases Of H-1B Visa Abuse
How Will It Affect Workers?
As Cognizant’s PERM filings have been suspended, the company cannot begin new green card sponsorship cases through this process while the suspension remains in place. This will impact foreign workers who are depending on Cognizant to start or continue their employment-based (EB) green card process. They may have to wait for some more time.
On the other hand, existing cases may face delays and uncertainty over whether and how they will move forward during the investigation. Notably, the suspension does not cancel existing H-1B visas. This means workers who are already in the US on valid H-1B status do not automatically lose their work visas due to this action.
Cognizant And H-1B Visas
The action is significant as Cognizant is a major H-1B visa petitioner in the US. According to figures from US Citizenship and Immigration Services, the company had 3,510 approved H-1B visa petitions for fiscal year 2026, placing it sixth in the US behind Amazon, TCS, Infosys, Apple and Microsoft.
Trump’s Crackdown On Visa Abuse
The action against Cognizant also comes amid Trump administration's tougher approach to abuse of the H-1B visa programme. In September 2025, the administration had launched “Project Firewall”, an initiative aimed at targeting employers accused of abusing the H-1B visa system.
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