The US Department of Labor has suspended Cognizant's ability to submit new PERM labour-certification filings while authorities investigate alleged fraud and misuse in employment-based immigration programmes.
The action can delay employees who were waiting for the company to begin employer-sponsored green-card processing. It does not automatically cancel an existing H-1B visa, approved green card or every immigration case already filed.
US authorities have not publicly disclosed all specific allegations, the number of affected applications or how long the suspension will last. Those gaps are important: employees should base decisions on the status of their individual case rather than broad social-media claims.
What is PERM?
PERM stands for Program Electronic Review Management. It is the system employers generally use to obtain labour certification before sponsoring a foreign worker for permanent residence in employment-based categories such as EB-2 or EB-3.
The employer first requests a prevailing wage, conducts prescribed recruitment and demonstrates that hiring the foreign worker permanently will not harm the wages or working conditions of US workers. It must also show that no qualified and available US worker was found for the role under the required process.
After the Department of Labor certifies PERM, the employer can normally file an I-140 immigrant petition with US Citizenship and Immigration Services. The worker may later apply for adjustment of status or an immigrant visa when the priority date is current.
How is PERM different from H-1B?
H-1B is a temporary non-immigrant work status for eligible specialty-occupation employment. PERM is usually an early step toward an employment-based green card.
The processes can run at the same time. A Cognizant employee may work in the United States on H-1B while the company separately pursues PERM for permanent residence.
Suspending new PERM filings does not, by itself, terminate that employee's current H-1B status. The worker must still maintain valid employment and comply with all H-1B conditions.
Likewise, someone who already holds permanent residence does not lose a green card merely because the employer is temporarily barred from starting new labour certifications.
Who is immediately affected?
The clearest impact falls on employees whose PERM case had not yet been filed. Cognizant cannot submit a new application for them while the suspension remains active, so they cannot establish a PERM filing date and move to the next sponsorship stage.
Workers in recruitment or prevailing-wage preparation may face delay even if the company had already started internal work. A company case number is not the same as a filing accepted by the Labor Department.
Employees with a PERM already filed, certified or denied are in different procedural positions. The government has not said that every existing case is cancelled. They should obtain the exact receipt and status from the employer's immigration team or counsel.
Why does the priority date matter?
For cases requiring PERM, the date the Labor Department accepts the application generally becomes the worker's priority date—the place in the immigrant-visa queue.
Indian applicants face particularly long waits because demand greatly exceeds the annual number available under per-country limits. The September 2026 Visa Bulletin listed EB-2 India as unavailable for final action and an EB-3 India final-action date in 2014, according to The Indian Express.
A delay in obtaining a priority date can therefore have consequences far beyond the length of the suspension. It places the worker behind other applications filed during the waiting period.
Can this affect H-1B extensions beyond six years?
Potentially, for some workers approaching the normal six-year H-1B limit. US law permits certain extensions when a labour certification or immigrant petition reached the required stage and timing.
If a worker cannot start PERM early enough, one route to extending H-1B status may become harder. People who already have an approved I-140 but cannot receive a green card because their priority date is not current may qualify under a different extension provision.
These rules are fact-specific. Employees nearing a status deadline should speak with qualified immigration counsel and should not rely only on a general company email or online explainer.
Why is Cognizant under investigation?
The Labor Department inspector general announced that Cognizant and Cloudera filings were suspended as part of work involving Labor Department officials and the White House Fraud Task Force.
The wider investigation concerns alleged misuse of H-1B and PERM programmes, including possible fraudulent filings, wage undercutting and displacement of US workers. An investigation and suspension are not the same as a final finding of liability.
Cognizant is a major technology employer with a large Indian workforce and a history of H-1B sponsorship. Its scale makes any interruption significant across the employment-immigration system.
What should affected employees do now?
First, determine the precise stage of the case. Ask for the PERM case number, filing date, I-140 receipt or approval notice rather than using the broad phrase “green-card process started.”
Second, check H-1B expiration dates, the time already spent outside the United States that might be recaptured, and whether another extension basis exists.
Third, avoid resigning, transferring or travelling internationally based only on speculation. A new employer may be able to begin sponsorship, but changing jobs can affect both temporary status and green-card strategy.
Fourth, preserve documents and obtain independent legal advice if a deadline is near. The employer's lawyers represent the company, even when they also communicate with the sponsored worker.
What happens next?
The duration depends on the investigation and any further Labor Department action. The agency could lift the suspension, impose conditions, pursue penalties or disclose more detailed allegations.
Cognizant may challenge the action or work with authorities to resume filings. Existing cases could receive additional scrutiny even if they are not automatically void.
The most accurate conclusion is narrow: new Cognizant PERM filings are paused, some employees will be delayed, and individual consequences depend on case stage and visa timeline. Claims that all Cognizant workers have lost their visas or green cards are incorrect.
Sources: The Indian Express and Business Standard.
