US Authorities Freeze Cognizant Green Card Applications Over Visa Fraud Probe

2026-09-09 companies

Washington, Wednesday, 9 September 2026.
The U.S. Labor Department suspended Cognizant’s green card sponsorships amid a federal fraud investigation, marking a severe regulatory crackdown on major corporate visa sponsors.

Federal Enforcement Action

On Tuesday, 8 September 2026, the U.S. Department of Labor suspended all permanent labor certification (PERM) filings for Cognizant Technology Solutions Corporation (NASDAQ: CTSH) [1][2]. This enforcement action follows an investigation into alleged visa fraud conducted by the Department of Labor Office of Inspector General and the White House Fraud Task Force [1][3]. The suspension blocks the company from filing new PERM applications until the investigation concludes, signaling heightened oversight for foreign technology service providers [1][4].

Understanding the PERM Process

The PERM process requires U.S. employers to demonstrate that no qualified U.S. workers are available for a position before sponsoring a foreign worker for permanent residency [2][5]. Employers must advertise domestically and meet prevailing wage requirements set by the Labor Department to ensure American workers are not negatively impacted [4][5]. Acquiring this certification is typically the first step in securing an employment-based green card for a foreign worker [2][4].

Visa Usage Trends

Cognizant, headquartered in Teaneck, New Jersey, received 3,510 H-1B visa petition approvals as of 30 June 2026, down from 9,413 in 2020 [2][3]. This represents a significant decrease in visa reliance, calculated as -62.711 percent over the period [2][3]. Despite the reduction, the company remains one of the largest petitioners for H-1B visas in corporate America [2][6].

Broader Industry Implications

The Trump administration initiated a nationwide federal fraud probe into H-1B and PERM employment visa programs in July 2026 [1][6]. Major Indian IT firms, including TCS, Infosys, and Wipro, are significant users of the H-1B visa program and may face increased scrutiny [3][5]. Stakeholders are monitoring the investigation for potential wider impacts on the broader IT industry in the coming months [3][6].

Sources

Immigration Enforcement Cognizant