- The Labor Department suspended Cognizant’s new PERM filings on September 8, 2026, during a fraud investigation.
- Existing H-1B visas remain valid; the freeze only blocks new employer-sponsored green card cases.
- Officials linked the action to a nationwide H-1B fraud probe that began July 8, 2026.
The U.S. Department of Labor suspended Cognizant’s new PERM labor certifications on September 8, 2026, stopping the technology company from starting employer-sponsored green card cases while investigators examine alleged immigration fraud. The action does not itself revoke existing H-1B visas.
Labor Department Inspector General Anthony D’Esposito announced the suspension. He said investigators were working with the White House Fraud Task Force as part of a broader examination of H-1B and PERM practices.
Free toolH-1B Cost Calculator Online
The agency has not publicly described the specific allegations. It also has not said how long the suspension will last.
D’Esposito wrote on X:
“Cognizant’s PERM filings are suspended”
The investigation began nationwide on July 8, 2026, according to the material describing the enforcement effort. Officials have connected it to alleged fraud and abuse in visa and labor-certification programs.
The freeze stops new green card cases, not current H-1B work
A PERM labor certification is the first step in the employer-sponsored process for many employment-based green cards. The suspension blocks the company from filing new applications during the investigation.
Existing cases remain on a different track. Existing H-1B visas are not revoked by the suspension, and current employees are not described as losing H-1B status because of the action alone.
Already approved PERM certifications and cases filed before the suspension are also reported to remain in place unless the department takes additional action. The freeze therefore delays new permanent-residence sponsorship without automatically canceling earlier immigration steps.
The distinction affects employees differently.
| Worker’s case stage | Reported effect |
|---|---|
| PERM filed and certified before September 8, 2026 | The certification is not described as losing its status |
| PERM already approved or filed | The case is reported to remain in place unless later action says otherwise |
| PERM not yet filed | A new employer-sponsored green card case cannot move forward during the suspension |
| Current H-1B employment | The suspension alone does not revoke H-1B work authorization |
Workers still waiting for the company to begin the labor-certification stage face the most direct delay. Employees with certified cases generally have already established their priority dates, making them less immediately exposed to the filing freeze.
The investigation’s allegations remain undisclosed
The Labor Department’s inspector general tied the action to an investigation into alleged fraud involving both the H-1B and PERM programs. The White House Fraud Task Force and other officials are participating in the inquiry.
The cited material does not identify criminal charges against the company. No public accounting of the number of filings affected accompanies the suspension.
USCIS Employer Data Hub data show 3,510 H-1B petition approvals through June 30, 2026. That figure provides a measure of the company’s H-1B presence, but it does not establish how many workers had pending or planned PERM cases.
The administration has framed the wider enforcement effort as a response to alleged visa fraud, labor-certification abuse, wage suppression and harm to American workers. The inquiry comes during a broader Trump administration crackdown on those practices.
The enforcement sweep reaches beyond one technology contractor
Cloudera also faced a similar PERM suspension in the same enforcement sweep, according to the material describing the action. The broader scrutiny could draw attention to recruitment, wages and compliance practices at other major Indian IT contractors.
Indian technology employees are especially exposed to delays when their employers sponsor them through the H-1B-to-green-card route. A worker whose employer has not yet filed the labor certification cannot advance that employer-sponsored case while the suspension remains active.
Employees with current H-1B authorization occupy a different position. Their work authorization continues unless a separate immigration action affects it, but the green card path can remain stalled at its first filing stage.
The September 8 action leaves the next decision with the Labor Department and investigators working on the nationwide inquiry. Until the suspension is lifted or additional measures are announced, workers without a filed PERM cannot begin that stage of the permanent-residence process through the company.
