The US Department of Labor has suspended Cognizant’s PERM filings, preventing the IT services company from moving ahead with new applications until an ongoing investigation is completed.
The action follows investigations into alleged misuse of the company’s H-1B and PERM programmes after whistleblower complaints.
“Threats to American workers will not be tolerated. Alongside @WHFraudTF, we are following facts, frauds and finances. Handcuffs await,” Labor Department Inspector General Anthony D’Esposito wrote on X.
PERM, or permanent labor certification, is an important step in the employment-based green card process. In most cases, an employer must first obtain certification from the Department of Labor before moving ahead with an immigrant petition through USCIS.
As part of the process, employers generally need to demonstrate that there are no qualified US workers available for the position and that hiring a foreign worker will not adversely affect the wages and working conditions of American workers.
Once PERM is approved, the employer can proceed with the next stages of the employment-based green card process.
However, the current suspension is understood to affect only new PERM filings. Existing approvals and Cognizant’s H-1B programme are not impacted by the action.
The move reflects broader scrutiny by the Trump administration of alleged misuse of employment-based immigration programmes, particularly by IT services companies.
Cognizant’s dependence on H-1B visas has declined over the years. Labor Department data cited in the report show that the company filed 3,436 Labor Condition Applications in 2025, compared with 10,189 in 2018.
USCIS has also recently highlighted cases in which it found issues with H-1B petitions.
In one such instance, USCIS said its Vermont office identified petitions from a major IT consulting company that had classified skilled technology jobs at wage levels lower than what the duties and requirements of the positions supported.
The agency said it denied and revoked multiple petitions, arguing that such practices could undercut required wages and create unfair competition for US workers.
The suspension of Cognizant’s PERM filings now adds another layer of scrutiny for large IT services companies that rely on employment-based immigration programmes.
