US Labor Department said it is investigating possible fraud involving H-1B and PERM programmes, raising concerns for Indian IT companies that rely heavily on employment-based visas
The US Department of Labor has suspended Cognizant’s PERM filings, marking a major development in the US government’s ongoing scrutiny of alleged visa fraud and misuse of employment-based immigration programmes.
In a post on X, US Labor Department Inspector General Anthony D’Esposito said that Cognizant’s PERM filings had been suspended and warned that officials were closely investigating possible fraud involving the H-1B and PERM programmes.
“Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant’s PERM filings are suspended. @DOLOIG is on the hunt. Threats to American workers will NOT be tolerated,” said D’Esposito
D’Esposito said the investigation was being conducted in coordination with the White House Fraud Task Force and other officials.
Alongside @WHFraudTF, we’re following facts, fraud and finances. Handcuffs await,” D’Esposito added.
What is PERM?
PERM, or Program Electronic Review Management, is the process through which US employers seek approval from the Department of Labor to sponsor foreign workers for permanent residency.
As part of the process, employers generally have to demonstrate that there are no qualified and available US workers for the position and that hiring a foreign worker will not adversely affect the wages or working conditions of American workers.
More from BusinessThe process involves advertising the position, conducting recruitment and filing the required application with the Labor Department.
Once PERM approval is granted, the employer can proceed with the next stages of the employment-based green card process.
The suspension means Cognizant is effectively blocked from moving forward with new PERM filings while the investigation continues. However, it does not automatically cancel existing approvals or suspend H-1B visas.
Potential impact on Indian IT companies
The action against Cognizant could have wider implications for India’s information technology industry.
Major Indian IT companies, including TCS, Infosys, Wipro, HCL and Cognizant, have historically been significant users of the H-1B visa programme.
If the Labor Department maintains its intensified scrutiny, other IT companies could also face closer examination of their H-1B and PERM practices.
The latest action signals that US authorities are taking a closer look at employment-based immigration programmes. For companies and foreign workers, the investigation could become an important development to watch in the coming months.
With inputs from agencies
