The United States government has taken significant action against IT services giant Cognizant, suspending its permanent labor certification (PERM) filings, a critical initial step in the green card application process. This move comes as federal authorities intensify a probe into alleged H-1B visa fraud, creating uncertainty for numerous Indian professionals seeking permanent residency in the US.
Federal Probe Targets Cognizant and Cloudera
The suspension was announced by US Department of Labor Inspector General Anthony D'Esposito, following a joint investigation conducted in collaboration with the White House Fraud Task Force and other federal officials. The action also extends to Cloudera, another technology company.
According to D'Esposito, Cognizant is now barred from submitting any new PERM applications until the ongoing investigation into alleged fraud within its H-1B and PERM programs is concluded. He emphasized the administration's commitment to protecting American workers, stating on social media, "Threats to American workers will NOT be tolerated."
Understanding PERM: The Green Card Gateway
PERM, or Program Electronic Review Management, is the mechanism through which US employers apply to the Department of Labor for authorization to sponsor foreign workers for permanent residency. A core requirement of this process is for employers to demonstrate that there are no qualified and available US workers for the position, and that hiring a foreign national will not negatively affect the wages or working conditions of American employees.
This suspension marks a further escalation in the Trump administration's broader campaign against alleged fraud in employment visa programs, which commenced with a major investigation launched in July.
Impact on Indian Professionals and Wider Industry Scrutiny
Cognizant, originally founded in Chennai in 1994 and now headquartered in Teaneck, New Jersey, is one of the largest sponsors of H-1B visas in the United States. Data from US Citizenship and Immigration Services indicates the company received approvals for 3,510 H-1B petitions as of June 30, a decrease from 9,413 in 2020.
Any disruption to the PERM pipeline has severe implications, potentially worsening already extensive delays for Indian professionals aspiring to settle in the US. With nearly one million Indian nationals currently caught in the employment-based green card backlog, a tightening of PERM filings at major employers like Cognizant could make an already challenging path even more arduous.
Furthermore, this federal action against Cognizant could trigger increased scrutiny on other prominent Indian IT firms heavily reliant on similar visa programs, including industry giants such as TCS, Infosys, Wipro, and HCL.