US suspends Cognizant's visa filing applications pending fraud probe

The US Department of Labor has suspended Cognizant Technologies Solutions from filing new PERM labour certification applications, effectively freezing the IT services company's ability to sponsor permanent immigrant workers through this programme. The move comes as part of a broader federal investigation into alleged fraudulent practices related to the company's visa programmes.

PERM, or Program Electronic Review Management, is a critical pathway for US employers to sponsor foreign workers for permanent residency. The suspension prevents Cognizant from initiating fresh applications under this scheme, though it does not affect pending cases currently under review. The halt will remain in place until authorities complete their investigation into the alleged violations.

Cognizant, headquartered in New Jersey but with significant operations across India, is one of the largest IT services exporters to the United States. The company employs thousands of Indian professionals on various visa categories, with PERM sponsorship being a key component of its US workforce strategy.

The investigation reportedly focuses on whether Cognizant complied with legal requirements in its visa sponsorship practices, including adherence to wage and recruitment standards. Such investigations by the US Department of Labor are not uncommon in the IT services sector, where visa sponsorship programmes have faced increased scrutiny in recent years.

The suspension represents a significant development for Cognizant's US operations and comes amid broader regulatory attention on visa programmes in the technology industry. The company has not publicly disclosed details about the investigation or its implications for current workforce planning.