Cognizant’s US green-card pipeline hits a roadblock, Indian tech workers could feel the fallout

• Cognizant’s new PERM filings have been suspended amid a US fraud probe.
• The move could delay green-card sponsorship for foreign workers.
• The investigation adds pressure on other major H-1B-dependent IT firms.

The green-card process can already be a long and uncertain wait for Indian technology professionals hoping to turn a US job into a permanent life in America.

Now, one of the biggest Indian-origin IT companies in the US has hit another roadblock.

The US Department of Labor has suspended Cognizant’s new permanent labor certification, or PERM, filings as federal authorities investigate alleged fraud involving employment-based visa programs.

The move puts Cognizant, one of the largest H-1B sponsors in the US, under an unusually intense spotlight — and raises questions about what the investigation could mean for employees whose long-term US plans depend on employer-sponsored permanent residency.

The Labor Department’s Inspector General Anthony D’Esposito announced the suspension on September 8, saying the department was working with the White House Fraud Task Force and other officials.

“Threats to American workers will NOT be tolerated,” D’Esposito said in a social media post.

He added: “Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant's PERM filings are suspended. @DOLOIG is on the hunt.”

In a further warning, he said investigators were “following facts, fraud and finances” and added: “Handcuffs await.”

The government has not publicly detailed the specific allegations against Cognizant, the number of filings affected or how long the suspension will remain in place.

Why this matters to Indian tech workers

PERM is an important step for US employers seeking to sponsor foreign employees for employment-based green cards.

Employers generally have to demonstrate that qualified US workers are not available for the position and that hiring a foreign worker will not adversely affect wages or working conditions.

A suspension means Cognizant cannot submit new PERM applications while the investigation continues. That does not mean existing green cards have been cancelled, but it can create another delay for employees waiting for their employer to begin or advance the permanent residency process.

That distinction matters for Indian technology workers because the employment-based immigration system has long been a major route for skilled professionals from India to build long-term careers in the US.

Cognizant was founded in Chennai in 1994 and is now headquartered in Teaneck, New Jersey. According to US Citizenship and Immigration Services data cited in reports, the company had received approval for 3,510 H-1B petitions as of June 30, down from 9,413 approvals in 2020.

The company is not alone in facing scrutiny.

Cloudera has also had its PERM filings suspended as part of the same broader federal investigation, according to the Labor Department.

The bigger warning for Indian IT

The Cognizant action comes after the Trump administration launched a broader investigation in July into alleged fraud and misuse involving H-1B and PERM programs.

That makes the development significant beyond one company.

Large Indian IT services firms including TCS, Infosys, Wipro and HCLTech rely on US employment visa programs to move skilled professionals into the American market. A more aggressive enforcement environment could therefore create additional compliance pressure across the sector.

The immediate impact, however, is likely to be felt most personally by workers caught in the middle.

For an employee, PERM is not simply another corporate filing. It can be part of a years-long immigration journey tied to where they live, work and build their future.

A delay can mean uncertainty over when permanent residency applications can move forward, while employees and their families continue planning their lives around a job and immigration status.

The Trump administration is framing the crackdown around protecting American workers.

D’Esposito’s message was blunt: “Threats to American workers will NOT be tolerated.”

The unanswered question is how far the investigation will go, and whether Cognizant is an isolated case or an early sign of a much broader examination of how major technology companies use the US employment visa system.

For now, one thing is clear: for thousands of foreign technology workers, the path from an American job to an American permanent residency has just become harder to predict.