Cognizant’s PERM filings have been suspended, the US Department of Labor said, which will prevent the IT services company from moving forward with new filings until the investigation is completed.
The move follows investigations initiated by the Labor Department, which looked into alleged fraud committed by the company in its H-1B and PERM visa programmes following whistleblower complaints.
“Threats to American workers will not be tolerated. Alongside @WHFraudTF, we are following facts, frauds and finances. Handcuffs await,” the department’s inspector general Anthony D’Esposito wrote on X.
Cognizant did not immediately respond to a request for comment.
A permanent labor certification issued by the Department of Labor allows an employer to hire a foreign worker to work permanently in the US. In most instances, before the US employer can submit an immigration petition to the Department of Homeland Security’s US Citizenship and Immigration Services (USCIS), the employer must obtain a certified labor certification application (LCA) from the Labor Department’s Employment and Training Administration (ETA).
Before applying, the company has to show that there are no qualified US workers for that role and that hiring a foreign worker will not negatively impact the wages and working conditions of American workers.
Once PERM is approved, the employer can move ahead with the next steps for an employment-based green card. However, the current suspension does not impact Cognizant’s existing approvals or its H-1B visa programmes.
The move by the US government shows the seriousness of the Trump administration in cracking down on allegations of misuse of these programmes by IT services companies.
Cognizant’s dependence on H-1B visas has reduced over the years. Data from the Labor Department show the company filed 3,436 LCAs in 2025, down from 10,189 in 2018.
USCIS, over the last one week, has mentioned a few instances where it uncovered exploitation of H-1B visa programmes.
“USCIS in Vermont identified H-1B petitions from a major IT consulting company that classified skilled technology jobs at wage levels below what the positions’ duties and requirements supported. This practice undercuts required wages and creates unfair competition for U.S. workers. We denied and revoked multiple petitions, protecting American workers and preserving the integrity of employment-based immigration programs,” it wrote on X.
