Cognizant’s Immigration Applications Put on Hold

The US Department of Labor has taken action against IT major Cognizant amid allegations of fraudulent practices related to immigration programs. The department has halted new Permanent Labor Certification applications filed by the company. PERM is a key first step in the employment-based green card process. Anthony D’Esposito, Inspector General of the US Department of Labor, said the agency would not tolerate actions that threaten American workers. He added that officials were working with the White House Fraud Task Force to closely examine facts, alleged fraud and financial transactions.

D’Esposito told the media that the action followed several complaints received from whistleblowers. However, the department has not disclosed details of the allegations or the number of applications affected. He clarified that the suspension would not affect certifications that have already been approved and would not apply to the H-1B visa program. A parallel investigation is also reportedly underway against another technology company, Cloudera.

The development comes a day after Cognizant CEO Ravi Kumar announced plans to hire 1,500 American college graduates and expand the company’s US workforce to 15,000. According to USCIS data, approvals of Cognizant’s H-1B petitions declined from 9,413 in 2020 to 3,510 in 2026. Immigration attorney Poorvi Chothani said it was unclear whether the Labor Department had the authority to block new applications and suggested that Cognizant could approach a federal court. Experts warned that the development could affect delivery models for long-term projects involving Indian IT professionals. Cognizant and Nasscom have not officially commented so far.