The suspension raises concerns not only for Cognizant but also for the broader Indian IT sector, which relies on the PERM programme to secure US residency for skilled workers.
The United States Department of Labour (DOL) has suspended ‘PERM applications’ for IT services major Cognizant alleging fraudulent practices involving the immigration programme. PERM acts as the first step for a foreign worker to get an employer-sponsored green card.
The action by US authorities not just impacts those in Cognizant’s PERM list but also affects Indian IT companies’ ability to retain foreign workers in the US.
Typically, companies must first ‘test the labour market’ and certify there are no qualified Americans available for the said role under PERM.
Anthony D’Esposito, Inspector General of the Department of Labour, announced in a post on X on Tuesday night, “Cognizant’s PERM filings are suspended. The Department of Labour alongside the White House Fraud Task Force is on the hunt. We are following facts, fraud and finances…,” the tweet read.
However, the Department did not specify the allegations against Cognizant nor did it mention the number of applications suspended.
In an interview with American media subsequently, Esposito said that DOL decided to act against Cognizant after receiving “multiple tips about violations form whistleblowers”.
“We were taking all of the previous applications and running them down one by one,” he added.
Kamal Karanth, Co-founder of specialist staffing firm Xpheno said that such an action could impact the delivery models and organisational structures planned for long-term client projects. “Accessibility to high-skilled and high-niche talent with long-term aspirations can become a challenge,” he said.
Poorvi Chothani, an Immigration Attorney, said that typically DOL could suspend any employer’s PERM processing if it learns of possible PERM fraud but its authority to prevent Cognizant from submitting new applications is less clear. Cognizant could seek relief in federal district court on certain grounds, she adds.
Green card
An analyst who closely tracks the Indian IT industry, and wished to not be named, said Cognizant has historically been among the biggest sponsors of green card for their foreign employees in the US.
“Ability to get permanent residency has been one of the key HR differentiations for Cognizant and for other IT services firms; this has helped them attract and retain talent in the US and the move could create anxiety among foreign workers in the US and lead to attrition,” the person said.
Both Cognizant and IT industry body Nasscom did not comment on the issue at the time of writing.
The suspension of Cognizant’s PERM applications by the US government comes amid a wider crackdown on alleged visa fraud and exploitation of employment-related immigration programmes by the Trump Administration.
(With inputs from Sindhu Hariharan)
Published on September 9, 2026
