Bengaluru/Washington, September 10, 2026: Cognizant Technology Solutions has come under heightened scrutiny in the United States after the US Department of Labor (DOL) suspended the company’s filings under the Permanent Labor Certification (PERM) programme amid an investigation into alleged fraud and misuse of employment-visa programmes.
The suspension was announced by DOL Inspector General Anthony D’Esposito, who said Cognizant’s PERM filings had been suspended as federal authorities examine potential violations involving employment-based immigration programmes. The investigation is being conducted with the White House Fraud Task Force and other Labor Department officials.
PERM certification is an important step for US employers seeking to sponsor eligible foreign employees for employment-based permanent residency, commonly referred to as a green card. The suspension therefore prevents Cognizant from moving forward with new PERM filings while the investigation continues. The authorities have not publicly disclosed the number of cases affected, the specific allegations or how long the suspension will remain in place.
The development is particularly significant for Cognizant’s foreign workforce, including Indian technology professionals who may depend on employer-sponsored immigration pathways for long-term residency in the US. However, the PERM suspension does not itself mean that existing green cards or H-1B visas have been cancelled; its immediate effect is on the filing of new labour-certification applications.
Hiring push comes amid immigration scrutiny
The Labor Department action comes just days after Cognizant announced an expanded commitment to building its US workforce. On September 7, the company said it planned to hire 1,500 US college graduates and expand its new Frontier Certified Engineer and Frontier Business Operator workforce to 15,000 people.
Cognizant had first announced in July that it was on track to hire 1,500 US college graduates by the end of 2026, with positions spanning its technology services business, Belcan engineering subsidiary and its Frontier Engineers programme.
The company said its US graduate hiring would draw on university partnerships including the University of Georgia, Arizona State University and the University of Kentucky, while its broader AI workforce initiative is intended to prepare American workers for emerging technology roles.
Broader US scrutiny of visa programmes
The Cognizant action forms part of wider federal scrutiny of the US employment-based immigration system. The Labor Department launched a nationwide investigation in July into alleged fraud involving the H-1B and PERM programmes, following complaints and concerns raised about potential abuse.
Cognizant is not the only technology company facing action. The Labor Department has also suspended PERM filings by Cloudera as authorities pursue the broader investigation.
For Cognizant, the immediate business impact will depend on the scope and duration of the suspension and the outcome of the investigation. For employees awaiting employer-sponsored permanent residency, the halt introduces another layer of uncertainty, while the company’s simultaneous expansion of US graduate hiring highlights the changing workforce and immigration environment facing technology-services companies in America.