Cognizant PERM Filings Suspended in DOL Fraud Investigation

What Happened

On September 8, 2026, U.S. Department of Labor Inspector General Anthony D'Esposito announced in a series of posts on X that the agency has suspended [Cognizant](https://www.newsweek.com/us-indian-it-giant-cognizant-hit-with-green-card-freeze-h-1b-fraud-probe-12419136)'s PERM filings while federal authorities investigate alleged fraud and misuse involving the PERM and H-1B programs. "Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant's PERM filings are suspended. @DOLOIG is on the hunt," D'Esposito wrote, adding: "Threats to American workers will NOT be tolerated."

The inspector general also announced that [PERM filings by Cloudera had been suspended](https://thefederal.com/category/international/trump-administration-suspends-cognizants-green-card-sponsorship-filings-256162), and that his office was working alongside the White House Fraud Task Force (@WHFraudTF) — "we're following facts, fraud and finances. Handcuffs await." D'Esposito credited Acting Labor Secretary Keith Sonderling's cooperation.

The announcements did not disclose the specific allegations against either company, the number of filings affected, or how long the suspensions will remain in force. No criminal charges against Cognizant or Cloudera were identified in the material released by the inspector general.

Who's Affected

PERM — Program Electronic Review Management — is the labor certification stage of the employment-based green card process. Under the program, the Department of Labor must certify that no qualified U.S. workers are available for a position and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers. An employer cannot move to the I-140 stage for most EB-2 and EB-3 cases without it.

• **Cognizant employees waiting to start PERM** — no new labor certifications can be filed while the suspension is active, stalling the start of the green card process for new candidates
• **H-1B workers whose employers depend on Cognizant as a client** — no direct impact on H-1B status itself, but extended green card delays can push workers past critical priority-date and status-expiration milestones
• **The broader IT industry** — analysts note the action puts every major H-1B user on notice that compliance scrutiny now extends beyond H-1B petitions to the entire H-1B-to-green-card pathway, including wage documentation and recruitment records
• **Indian nationals in green card queues** — India-born applicants already face multi-deade EB-2/EB-3 backlogs; any prolonged employer-side filing freeze compounds the delay

Why This Matters — It's Not Just About Cognizant

Cognizant is the first Fortune 500-scale, Nasdaq-listed IT services giant targeted in the fraud crackdown — a significant escalation from the boutique data companies scrutinized earlier in 2026:

• **July 2026 — Project Firewall:** DOL-OIG's [Project Firewall investigation](/blog/dol-oig-project-firewall-h1b-perm-fraud-investigation-2026) put PERM and H-1B fraud enforcement on the map with data-driven investigations into labor certification programs
• **May 2026 — Cloudera:** DOL-OIG [suspended Cloudera's PERM filings](/blog/cloudera-perm-suspension-doj-lawsuit-2026) for the first time, alongside a DOJ lawsuit
• **September 8, 2026 — Cognizant:** The crackdown's first household-name target — a company with roughly 280,000 employees globally and one of the largest H-1B and green card sponsorship footprints in the United States
• **The signal:** EIITREND CEO Pareekh Jain told The Hindu that the move suggests scrutiny is intended "less about an India-U.S. issue and more about sending a signal to the wider IT industry" — if similar actions follow against other technology companies, the industry could shift toward more local hiring

What Attorneys Should Know

• **Track the investigation, not the announcement.** No charges have been filed and no allegations specified — employers and employees should monitor DOL-OIG and court records, not social media, for the substance of the case
• **Audit PERM files now.** The enforcement posture makes PERM recruitment records, prevailing wage determinations, and job-requirement documentation the highest-risk compliance surface for every H-1B-heavy employer
• **Advise affected Cognizant/Cloudera clients.** Workers whose PERM has not yet been filed face indefinite delay — counsel them on I-140 retention (priority-date portability under INA 204(j)) and on whether a move to a non-affected employer restarts a faster path
• **Consider the retention risk.** A prolonged filing freeze creates attrition pressure on exactly the employees most likely to leave — those already deep in the green card queue — with potential downstream effects on project delivery and H-1B amendments
• **Watch for industry-wide enforcement.** If additional major IT employers face similar suspensions, expect broader PERM processing slowdowns and increased documentary demands across the program

What Applicants Should Do

• **If you work at Cognizant or Cloudera and have NOT started PERM** — your green card process cannot move forward until the suspension lifts. Ask HR for a written timeline, and start building a personal file of your immigration documents now
• **If your PERM is already approved** — the suspension does not cancel it. Work with your attorney to keep the I-140 stage moving where possible
• **If you are considering a job offer from either company** — factor the green card timeline risk into your decision, and get any PERM sponsorship commitment in writing before you accept
• **If you are in the India EB-2/EB-3 backlog** — this is one more reason to keep personal copies of your PERM, I-140, and priority date records, and to understand your options if your employer's process stalls
• **For everyone else in H-1B** — use this as a reminder: your immigration status should never depend entirely on your employer's compliance. Keep your own records and know your portability rights