World
US Labor Department Halts Cognizant's Green Card Filings Amid Visa Fraud Probe
The US Department of Labor has suspended Cognizant's ability to file new applications under the PERM labor-certification program as part of an investigation into alleged fraud and misuse of employment-visa programs, officials announced this week.
The Labor Department's Office of Inspector General confirmed it is investigating Cognizant, though specific allegations against the company have not been made public. The probe is being conducted jointly with the White House Fraud Task Force and other officials.
Inspector General Anthony D'Esposito addressed the investigation in a post on social media platform X, stating that authorities were following "facts, fraud and finances" and warning that "threats to American workers will NOT be tolerated." He added that "handcuffs await" those found responsible.
Cognizant maintains a workforce heavily based in India. According to the company's most recent annual filing, 256,900 of its 351,600 total employees were located in India as of the end of 2025.
Data from US Citizenship and Immigration Services shows Cognizant secured 3,510 H-1B visa applications through June 30, 2026, a sharp decline from 9,413 approvals in 2020.
PERM, which stands for Program Electronic Review Management, is the labor-certification process most US employers must complete before sponsoring foreign workers for permanent residence under many employment-based green card categories. The process is frequently used by workers already in the US on H-1B visas, though it is not required for every employment-based green card category. Under PERM rules, employers must conduct specified recruitment efforts and attest that no sufficiently qualified US workers are available for the position, and that hiring a foreign worker will not negatively affect wages or working conditions for similarly employed American workers.
Cognizant is not the only company facing scrutiny. The Labor Department has also suspended H-1B visa processing for Cloudera, a US enterprise software company that provides data and AI platforms to businesses. In a statement to Newsweek, a Cloudera spokesperson said the company does not discriminate against US workers or anyone based on citizenship status, and said it takes the government's allegations seriously and has fully cooperated with the investigation since it began. The spokesperson added that Cloudera remains committed to fair and lawful recruitment practices and will continue cooperating with authorities.
This is not the first time Cognizant has faced legal challenges related to its hiring practices. A class action lawsuit filed in 2017 by three US citizens who identified as Caucasian alleged that Cognizant's employment practices favored South Asian employees and workers of Indian national origin. An initial trial ended with a deadlocked jury, but a 2024 retrial resulted in a verdict for the plaintiffs. The jury concluded that Cognizant had engaged in a pattern or practice of intentional discrimination against non-South Asian and non-Indian employees, particularly favoring those holding visas.