The US Department of Labor has suspended PERM filings for IT giant Cognizant and Cloudera following allegations of visa fraud and procedural irregularities. The move is part of a wider crackdown to protect American workers' interests.
- US Department of Labor has halted PERM filings for Cognizant and Cloudera.
- The action follows a coordinated investigation by the White House Fraud Task Force.
- PERM is the critical first step for foreign employees to obtain a Green Card.
- The probe focuses on fraud, financial irregularities, and displacement of US workers.
In a significant escalation of its crackdown on visa irregularities, the Trump administration has targeted the Indian IT behemoth Cognizant and Cloudera. The US Department of Labor has officially suspended their PERM (Program Electronic Review Management) filings, signaling a zero-tolerance approach toward perceived fraud in the immigration system.
The PERM process is the foundational step for permanent residency (Green Card) sponsorship. Under this system, employers must prove that there are no qualified, willing, and available US workers for the position before they can sponsor a foreign national. Any manipulation of this process is viewed as a direct threat to the domestic labor market.
Why This Matters
BozokMedia analysis shows that this is not merely a regulatory hiccup but a strategic shift in US corporate immigration policy. By targeting a high-profile entity like Cognizant, the administration is sending a chilling message to the entire H-1B dependent industry. The suspension of PERM filings creates a massive bottleneck for thousands of high-skilled migrants, potentially triggering a talent exodus or a shift in how IT firms structure their global workforce.
The suspension of labor certifications for major IT firms marks a transition from administrative oversight to aggressive enforcement, where the burden of proof for 'necessity' has shifted heavily onto the employer.
Inspector General Anthony D'Esposito, who announced the move, emphasized that the interests of American workers will not be compromised. The investigation, launched in July, is scrutinizing the financial trails and documentation associated with H-1B and PERM programs to identify systemic abuses designed to undercut US wages.
Historically, Cognizant has been one of the largest users of the US visa system. While the company saw 9,413 H-1B approvals in 2020, that number dropped to 3,510 by June 2026. This downward trend suggests either a strategic pivot by the company or the impact of tightening regulations that preceded this current suspension.
| Visa/Process | Primary Objective | Current Status (Cognizant) |
|---|---|---|
| H-1B Visa | Temporary employment for specialty occupations | Active, but declining volume |
| PERM Process | Labor Certification for Permanent Residency | Suspended |
Frequently Asked Questions
1. How does the PERM suspension affect existing employees?
While existing valid visas remain intact, those waiting for their Green Card sponsorship to begin or proceed will face indefinite delays, creating significant legal uncertainty.
2. Is this a permanent ban on Cognizant's filings?
No, it is a suspension pending the outcome of the investigation. The ban could be lifted or turned into a permanent penalty depending on the findings of the Fraud Task Force.
