The US Department of Labor has suspended Cognizant’s ability to submit new PERM applications, the first step in sponsoring foreign workers for employment-based green cards, amid an investigation into alleged visa fraud involving the India-founded and US-listed technology company.

The suspension was announced by the department’s Inspector General Anthony D’Esposito, who warned that alleged threats to American workers would not be tolerated. Technology firm Cloudera has also had its PERM filings suspended.

Cognizant PERM Filings Put On Hold

D’Esposito announced the action against Cognizant in a post on X on Tuesday, saying the company’s PERM filings had been suspended as authorities continued examining alleged wrongdoing.

“Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant’s PERM filings are suspended. @DOLOIG is on the hunt. Threats to American workers will NOT be tolerated. Alongside @WHFraudTF, we’re following facts, fraud and finances. Handcuffs await”, D’Esposito said.

The announcement comes as Cognizant is under investigation over allegations of visa fraud.

In a separate post, D’Esposito said Cloudera had also been barred from submitting PERM filings.

“One more. @cloudera: PERM filings SUSPENDED. @Sonderling47 @DOLOIG @WHFraudTF,” he said.

PERM Certification Is First Step Towards Employment-Based Green Card

PERM, or the Programme Electronic Review Management system, is used by the US Department of Labor to process applications for Permanent Labor Certification.

Obtaining the certification is the first step in the process of securing an employment-based green card for a foreign worker.

The suspension means Cognizant and Cloudera are unable to move ahead with new PERM filings while the action remains in place.

Cognizant Among Major H-1B Visa Applicants

Cognizant was founded in Chennai in 1994 and is now headquartered in the United States. The company is also among the largest corporate applicants for H-1B visas in the country.

According to US Citizenship and Immigration Services, Cognizant has received approval for 3,510 H-1B visa petitions. The figure places the company behind Amazon, TCS, Infosys, Apple and Microsoft.

The H-1B programme allows US employers to hire foreign workers temporarily in the country for speciality occupations, or fashion models of distinguished merit and ability, according to the US Department of Labor.

Under existing law, up to 65,000 qualifying foreign workers can receive H-1B visas or H-1B status each year. A further 20,000 visas are available under the H-1B advanced degree exemption.

Trump Administration’s Crackdown On Alleged Visa Abuse

The action against Cognizant comes amid the Trump administration’s broader push against what it describes as abuse of the H-1B visa programme.

In September last year, the administration launched “Project Firewall”, an initiative aimed at targeting employers accused of abusing the H-1B visa system.

The latest suspension and the investigation into alleged visa fraud come against the backdrop of that wider enforcement drive, with US authorities increasingly focusing on alleged irregularities involving employers and foreign worker visa programmes.

Labour Day Message Preceded Announcement

D’Esposito’s announcement on Cognizant’s PERM filings followed a strongly worded message he posted on US Labor Day on September 7.

“#LaborDay honors the American workers who built this nation, not those who steal their jobs through fraud. To those people: this #LaborDay only strengthens our resolve. @DOLOIG is coming for you,” D’Esposito said.

His subsequent posts announcing the suspension of Cognizant’s and Cloudera’s PERM filings signalled the latest action in the Department of Labor Inspector General’s push against alleged visa-related fraud and practices that authorities say threaten American workers.

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