The US Department of Labour has suspended Cognizant’s PERM applications over possible fraud, as the government steps up scrutiny of employment-linked immigration programmes.
The United States Department of Labour (DOL) has suspended PERM applications for US-headquartered IT services firm Cognizant alleging fraudulent practices involving the employment-linked immigration programme.What is PERM?PERM, or the Permanent Labour Certification, allows employers to hire a foreign worker to work permanently in the United States. Unlike the H1B programme, which grants the employee a temporary work visa, PERM is the first step towards a permanent green card.To obtain the certification, the employer must first ‘test the labour market’ and certify there are no qualified U.S. workers available for the job. They must also show that hiring a foreign worker will not lower the wages or working conditions.DOL announces Cognizant suspensionAnthony D’Esposito, Inspector General of the Department of Labour, announced in a post on X on Tuesday night.“Fighting fraud is a team sport. 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. Handcuffs await,” the tweet read.Cognizant has not yet responded to businessline’s query on the issue as of the time of filing the report.IT companies rely on PERMIT service companies have long used the PERM programme to sponsor employment-based green cards for Indian national employees.In the first three quarters of FY26 (US Federal Year format from October-September), a total of 104,028 permanent labour certifications were issued, out of which the Professional, Scientific and Technical Services, which includes IT service employees, accounted for 28,425 certifications or 27.3 per cent.While the DOL no longer publishes country-- and company-wise data on the number of PERM certifications, Indians accounted for 65,095 in FY16, when the data was last released.Multiple IT service companies, including Cognizant, Wipro, Infosys, and HCL, featured among the top ten employers with PERM certifications at that time.US steps up immigration scrutinyThe 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 programs.Esposito said in July of this year that the Department of Labour will launch an investigation into the alleged misuse of the employment visa, along with labour trafficking and other fraudulent labour practices. Cognizant was then mentioned as one among the companies under scrutiny.The US government had previously sought to make the H-1B visa regime more stringent when President Donald Trump signed an order imposing a one-time $100,000 fee on new petitions. However, a federal judge struck down the order in June of this year.Published on September 9, 2026
