U.S. officials suspended Cognizant’s PERM filings, creating a new obstacle for employees pursuing employer-sponsored green cards through the technology services company. The action is especially relevant to Indian professionals, who make up a significant share of the U.S. technology workforce and often face lengthy employment-based immigration waits.

Department of Labor Inspector General Anthony D’Esposito announced the suspension on September 8, 2026. He said the Labor Department’s Office of Inspector General was investigating Cognizant and linked the action to a broader federal effort focused on suspected fraud in employment programs.
The government has not published the specific allegations involving Cognizant. Officials also have not disclosed how many applications are affected, how long the suspension may last or whether every pending case will be treated in the same way. Cognizant had not issued a formal public response as of September 9, 2026.
The announcement also referred to Cloudera, whose PERM applications were separately suspended by the Labor Department for 180 days on May 12, 2026. That action followed a Justice Department lawsuit alleging that Cloudera discriminated against U.S. workers during recruitment. Those publicly detailed allegations concern Cloudera and should not be treated as allegations against Cognizant.
PERM, formally known as permanent labor certification, is commonly required before an employer can sponsor a foreign employee for permanent residence in the EB-2 or EB-3 categories. The employer must complete recruitment steps and demonstrate that qualified, willing and available U.S. workers cannot fill the position at the required wage.
After the Labor Department certifies an application, the employer generally proceeds to an immigrant worker petition with U.S. Citizenship and Immigration Services. The employee may later apply for permanent residence when an immigrant visa is available.
Because the employer controls the PERM filing, an affected employee cannot simply submit the application independently. A suspension can therefore stop or delay cases that have not yet been filed and may postpone the establishment of a PERM-based priority date.
Employees should first determine where their cases currently stand. The announcement leaves unanswered whether already filed applications, approved labor certifications or later-stage immigrant petitions will continue moving normally.
The action does not itself cancel H-1B status. PERM is part of a permanent-residence process, while H-1B is a temporary employment classification with separate requirements. However, workers whose long-term plans depend on Cognizant sponsorship may need to review approaching visa-expiration dates and other case-specific deadlines.
The next important development will be a formal Labor Department notice explaining the suspension’s scope, duration and treatment of pending cases. Employees should rely on written case records and qualified immigration counsel rather than assume that all Cognizant-sponsored green card cases have been canceled.
This article provides general information and is not legal advice.
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