US labor officials suspend Cognizant’s green card filings amid visa fraud probe

Federal labor officials have suspended Cognizant’s ability to file new employment-based green card labor certifications while investigators examine alleged fraud and misuse of visa programs, a move that could delay permanent residency sponsorship for some workers at the technology services company. Officials have not publicly disclosed the full scope of the investigation, the specific allegations or how long the suspension will remain in place.

The action matters because the permanent labor certification process, commonly known as PERM, is a key step for many employer-sponsored green card cases in the United States. For affected employees, a suspension can mean a pause in the process even if other parts of an immigration case are already underway. Cognizant, which is headquartered in the United States and has deep ties to India’s tech sector, has not said publicly how many workers may be affected.

The federal government has increasingly scrutinized employment-based immigration programs in recent months. In May 2026, the Department of Labor announced a similar enforcement action against Cloudera, saying it had suspended permanent labor certification processing for the company after allegations that its recruitment process discouraged qualified American workers from applying. That action was presented as part of broader enforcement against possible fraud or willful misrepresentation in the PERM program.

Broader scrutiny of employment visa programs

Recent public filings and agency disclosures have also highlighted wider concerns about visa compliance in the tech sector. Cognizant’s annual report, filed with the U.S. Securities and Exchange Commission, says the company faces risks from visa application rejections, processing delays, higher costs and changing immigration rules that could affect staffing and project delivery. Those disclosures do not address the current suspension directly, but they underscore how heavily large technology employers rely on foreign-worker visa programs.

The Department of Labor’s Office of Foreign Labor Certification publishes ongoing data and processing information for PERM and other employment-based immigration programs, reflecting the federal government’s central role in overseeing employer sponsorship. In the present case, however, officials have not released a public finding of wrongdoing against Cognizant, and no criminal charges have been announced in connection with the suspension.

For now, the practical effect is that Cognizant cannot move forward with new PERM filings while the investigation continues. The suspension adds another layer of uncertainty for employees and applicants who depend on the company’s sponsorship to advance toward permanent residence, and it signals that federal enforcement efforts are likely to remain focused on employer practices in the visa system.