The US Department of Labor has suspended Cognizant’s ability to file new green card sponsorship applications. The action follows an investigation into alleged visa fraud involving the India-founded technology company. The suspension prevents Cognizant from starting new PERM labor certification cases while the investigation continues. Cognizant had been a major employer for foreign technology workers in the US. The development has raised concerns among employees relying on the company for their employment-based green card process.
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What Led To The Suspension?
Cognizant was founded in Chennai in 1994 and now has its headquarters in the United States. The company ranks among the major corporate users of the H-1B visa programme in America. The Department of Labor has stopped Cognizant from submitting new PERM applications, which employers generally need before sponsoring foreign workers for green cards. Labor Department Inspector General Anthony D’Esposito said authorities would not tolerate threats to American workers. The investigation will examine allegations related to fraud, finances and visa practices.
The suspension could affect foreign employees who were waiting for Cognizant to begin or advance their employment-based green card applications. New PERM cases cannot move forward while the department maintains the suspension. Existing cases could also experience delays or uncertainty during the investigation. However, the action does not cancel valid H-1B visas held by Cognizant employees. Workers already in the US with valid H-1B status will not automatically lose their work authorization because of the suspension.
Will Existing Foreign Workers Be Affected?
Cognizant’s major role in the H-1B programme makes the action particularly significant for foreign technology workers. According to US Citizenship and Immigration Services data, Cognizant received approval for 3,510 H-1B petitions for fiscal year 2026. The figure placed the company sixth among major US H-1B petitioners. Amazon, TCS, Infosys, Apple and Microsoft ranked ahead of Cognizant. The suspension could therefore affect a significant number of workers who depend on the company for long-term immigration sponsorship.
The action against Cognizant comes as the Trump administration continues to take a tougher approach toward alleged H-1B visa abuse. In September 2025, the administration launched “Project Firewall” to target employers suspected of misusing the H-1B visa system. The latest Cognizant investigation adds to those broader enforcement efforts. Authorities are now examining the allegations and the company’s visa-related practices. The investigation will determine whether further action or additional arrests could follow.
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