Cognizant's employment based green card filings in the US have been suspended amid a federal investigation into possible fraud and misuse of employment visa programmes, raising concerns for foreign employees relying on the company for permanent residency sponsorship.
Anthony D'Esposito, Inspector General at the US Department of Labor, announced the action on X. He said the Labor Department's Office of Inspector General, official Keith Sonderling and the White House Fraud Task Force were involved in the investigation.
“Cognizant's PERM filings are suspended,” D'Esposito said, adding, “Handcuffs await.”
PERM, or Permanent Labor Certification, is generally required when an employer sponsors a foreign worker for an employment based green card.
The process requires companies to demonstrate that employing foreign workers will not adversely affect US workers.
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What The Suspension Means?
The suspension could prevent Cognizant from submitting new PERM filings while the investigation continues.
Foreign employees whose green card cases depend on new filings could therefore face delays.
However, the announcement does not indicate that existing visa approvals, green card approvals or immigration statuses have been cancelled. It also does not say that employees with pending applications will automatically lose their cases.
The number of affected employees and applications remains unknown. Authorities have also not disclosed how long the suspension will remain in place or the specific allegations against Cognizant.
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Part Of Wider US Visa Crackdown
The action comes as US authorities investigate possible fraud and abuse across H-1B and green card sponsorship programmes.
The investigation launched in July is examining allegations including false visa applications, wage kickbacks, unpaid benching, fraudulent recruitment and practices that could disadvantage American workers.
Investigators have also conducted on site checks linked to hundreds of approved H-1B petitions.
Recent enforcement has extended beyond Cognizant. The Justice Department has pursued cases involving employers accused of discouraging US workers while recruiting foreign employees. However, those cases do not establish that Cognizant committed similar violations.
For Cognizant's foreign workforce, the immediate concern is uncertainty. The company's green card sponsorship process could face delays until investigators complete their review and US authorities determine the next steps.
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