The U.S. Department of Labor has opened an investigation into alleged fraud in the H‑1B and PERM employment‑visa programs, with Indian IT giant Cognizant named in whistleblower complaints. The probe is part of a broader crackdown on visa abuse under the current administration.

मुख्य बिंदु (Key Takeaways)

  • The U.S. Labor Department has begun a probe into H‑1B and PERM visa fraud.
  • Cognizant’s H‑1B filings dropped by roughly 70% between 2018 and 2025.
  • The investigation also alleges labor trafficking, wage‑kickback schemes, and exploitation of foreign workers.

Cognizant appears in the U.S. Labor Department’s investigation report after Inspector General Anthony D'Esposito said whistleblower complaints linked the company to irregularities in the H‑1B and PERM visa programs. The Office of Inspector General (OIG) is conducting the probe in coordination with federal law‑enforcement agencies.

Background and Data

According to Department of Labor statistics, Cognizant filed 10,189 Labour Condition Applications (LCAs) in 2018, a figure that fell sharply to 3,436 in 2025. An LCA is a mandatory filing that certifies an employer will pay the prevailing wage and adhere to labor standards before sponsoring a foreign professional for an H‑1B visa. Despite the steep decline, the company’s name surfaced in alleged fraud cases.

Key Aspects of the Investigation

The OIG has already issued dozens of subpoenas and is pursuing leads that suggest employers and labor brokers submitted false visa applications, coerced foreign workers into below‑market wage arrangements, and used these practices to undercut American workers. The agency emphasized that the H‑1B and PERM programs are intended to address genuine labor shortages, not to facilitate fraudulent hiring.

Potential Consequences

If serious violations are confirmed, Cognizant could face substantial fines and possible bans on future visa petitions, which would disrupt its global talent pipeline. The fallout could also ripple through India’s IT export sector, raising concerns about compliance across the industry. Cognizant has not responded to media inquiries at the time of publication.

Wider Implications

This investigation aligns with President Donald Trump’s administration’s intensified effort to eradicate employment‑visa fraud, spearheaded by Vice‑President JD Vance’s task force. Experts warn that heightened enforcement sends a clear message: companies that sidestep immigration rules will be held accountable, prompting a shift toward more transparent hiring practices.