World
Why US suspended Cognizant’s Green Card filings: What’s the controversy?
Cognizant US visa probe intensifies as the Labor Department suspends PERM filings while investigating alleged H-1B and immigration programme fraud.
FULL ARTICLE · The Indian Express World
4 min readNew DelhiUpdated: Sep 16, 2026 10:13 PM IST
The Trump administration has suspended Cognizant’s PERM filings amid an investigation into alleged fraud in employment visa programmes. (Express Photo/Wikimedia Commons)
Cognizant is facing renewed scrutiny in the US after the Department of Labor suspended the IT giant’s ability to file new applications under the PERM labour-certification programme, amid an investigation into alleged fraud and misuse of employment-visa programmes.
The Labor Department’s Office of Inspector General announced an investigation into alleged fraud and misuse of employment-visa programmes involving Cognizant. The department has suspended the company’s new PERM filings while the investigation continues. The specific allegations against Cognizant have not been publicly detailed.
US probes Cognizant over alleged visa fraud
Labor Department’s Inspector General Anthony D’Esposito, in a post on X, said the investigation was being carried out alongside the White House Fraud Task Force and other officials. In another statement, D’Esposito said authorities were following “facts, fraud and finances”. “Threats to American workers will NOT be tolerated. Alongside White House Task Force, we’re following facts, fraud and finances. Handcuffs await,” he added.
US Department of Labour Inspector General Anthony D’Esposito. (Instagram/@anthonydespo)
Cognizant’s H-1B visa numbers
Cognizant’s workforce is heavily concentrated in India — the company’s latest annual filing says 256,900 of its 351,600 employees were based in India at the end of 2025.
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. — Inspector General Anthony D’Esposito (@USLaborIG) September 8, 2026
According to US Citizenship and Immigration Services (USCIS) data, Cognizant was able to secure 3,510 H-1B visa applications through June 30, 2026, in comparison with 9,413 H-1B visa approvals in 2020.
What is PERM and how does it affect green cards?
PERM, or Program Electronic Review Management, is the labour-certification process that US employers generally must complete before sponsoring foreign workers for permanent residence in many employment-based green-card categories. It is commonly used for workers already in the US on H-1B visas, although not every employment-based green-card category requires PERM.
One more. @cloudera: PERM filings SUSPENDED. @Sonderling47 @DOLOIG @WHFraudTF 🇺🇸 — Inspector General Anthony D’Esposito (@USLaborIG) September 8, 2026
Under the PERM process, employers must conduct prescribed recruitment and attest that there are not sufficient able, willing, qualified and available US workers for the position, and that employing the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.
Cloudera also faces US visa scrutiny
Apart from Cognizant, the Labor Department has also pulled up a US enterprise software company, Cloudera, that is responsible for providing data and AI platforms to businesses. Cloudera’s H-1B visa processing has also been suspended.
In a statement to Newsweek, Cloudera’s spokesperson said, “Cloudera is proud to hire American workers. We do not discriminate against US workers—or anyone—based on citizenship status. We take the government’s allegations very seriously, and from the start, we have cooperated fully with this investigation. Cloudera is committed to fair, lawful, and open recruitment practices, and we will continue to cooperate with the government’s investigation as we work to resolve this matter.”
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Cognizant faced discrimination lawsuit in 2024
The 2017 class action was brought by employees who alleged that Cognizant’s employment practices favoured South Asian employees and workers of Indian national origin. After an earlier trial ended with a deadlocked jury, a retrial in 2024 resulted in a verdict for the plaintiffs on their claim of a pattern or practice of intentional discrimination against non-South Asian and non-Indian employees.
The lawsuit was filed in 2017 by three US citizens who identify as “Caucasian,” and the jury in the verdict concluded that Cognizant was involved in a “pattern or practice” of discrimination, favouring South Asians and Indian nationals, particularly those with visas.
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Nischai Vats is a Deputy Copy Editor at The Indian Express. His work primarily covers US politics and visa and immigration policy, alongside broader international developments, with an emphasis on accuracy, verification, and clear explainers. Experience Nischai joined The Indian Express in May 2024 where he works on writing, editing, and refining high-impact stories for digital platforms. His role involves ensuring editorial consistency, factual accuracy, and clarity in coverage of complex policy-driven subjects. Earlier in his career, he worked across Indian digital newsrooms in reporting and editing roles, including stints at Inshorts, Newslaundry, Tiranga TV, and Catch News. His newsroom experience spans rapid digital publishing, ground reporting, and copy editing across national, civic, and policy beats. Expertise His core areas of focus include: US politics and governance: Coverage of American political developments, executive actions, and policy shifts. US visa and immigration policy: Reporting and editing stories on visa categories, regulatory changes, and immigration pathways affecting global audiences. Editorial accuracy and copy editing: Ensuring clarity, language precision, and verification in fast-paced digital news environments. Authoritativeness and trustworthiness Nischai's journalism is grounded in verified sources, official documentation, and clear attribution, in line with The Indian Express’ editorial standards. His background across reporting and editing enables him to translate complex policy updates into reliable, reader-friendly coverage. ... Read More
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