Indian-founded technology giant Cognizant is facing growing scrutiny in the United States after the US Department of Labor suspended the company’s ability to file new green card sponsorship applications. The action comes as Washington intensifies its crackdown on alleged misuse of the H-1B visa system and investigates potential visa fraud involving major employers.
The development puts Cognizant, one of the largest corporate users of H-1B visas in the US, directly in the spotlight as the Trump administration steps up efforts to protect American workers and challenge what it describes as abuse of the immigration system.
Credits: The Daily Jagran
Department of Labor Takes Action Against Cognizant
The US Department of Labor announced that Cognizant’s ability to submit new PERM applications had been suspended. PERM, or Program Electronic Review Management, is a crucial part of the employment-based green card process. Employers generally need to obtain permanent labor certification before sponsoring eligible foreign workers for permanent residency.
The announcement was accompanied by a strongly worded statement from Anthony D’Esposito, Inspector General at the Labor Department.
“Threats to American workers will NOT be tolerated,” D’Esposito said in a post on X, adding that officials were following “facts, fraud and finances” and warning that arrests could follow.
The Labor Department also announced a similar suspension involving US technology company Cloudera, indicating that the action is part of a broader enforcement push rather than an isolated case involving Cognizant.
Cognizant’s Deep Ties to the H-1B System
Cognizant has a particularly prominent position in the US immigration debate because of its extensive use of skilled foreign workers.
The company was founded in Chennai in 1994 but is now headquartered in the United States. Over the years, it has become one of the biggest corporate applicants for H-1B visas, which allow US employers to temporarily hire foreign workers in specialised occupations.
According to data from US Citizenship and Immigration Services cited in the report, Cognizant has received 3,510 approved H-1B petitions. That puts it among the largest recipients in corporate America, behind companies including Amazon, Tata Consultancy Services, Infosys, Apple and Microsoft.
The suspension therefore has the potential to affect not only Cognizant’s future green card sponsorship activity but also the broader debate surrounding how major technology companies recruit and retain international talent.
Trump Administration Steps Up Visa Enforcement
The latest action comes amid a tougher US government approach to immigration and alleged visa abuse.
In September 2025, the Trump administration launched “Project Firewall”, an initiative designed to investigate employers suspected of misusing the H-1B programme.
The H-1B system allows companies to temporarily employ foreign workers in specialised occupations. The programme is capped at 65,000 qualifying visas annually, with an additional 20,000 places available under the exemption for foreign workers holding advanced degrees from US institutions.
The administration has increasingly framed enforcement as an issue of protecting American workers, arguing that companies should not use foreign-worker programmes to improperly replace or disadvantage US employees.
A Strong Warning to Employers
The Cognizant action also follows a sharply worded Labor Day message from D’Esposito on September 7.
He said Labor Day honours American workers who built the country and warned that the government would continue pursuing individuals and companies involved in alleged fraud.
The tone of the message underscores how aggressively US authorities are approaching immigration-related investigations.
For Cognizant, the immediate consequence is a restriction on new PERM filings. But the larger issue could be reputational and operational. As a global technology company with significant US operations and a large international workforce, Cognizant will be closely watched as the investigation develops.
The case could also become an important test of how far the Trump administration is prepared to go in reshaping the US technology industry’s reliance on foreign skilled workers.
Credits: The Indian Express
What Comes Next for Cognizant?
The suspension does not mean that Cognizant’s existing employees automatically lose their visas or green cards. Instead, it affects the company’s ability to pursue new permanent labor certifications through the PERM system.
The bigger question is whether investigators uncover evidence of wrongdoing and whether additional enforcement actions follow.
With Washington placing renewed emphasis on immigration compliance, technology companies that depend heavily on foreign talent could face greater scrutiny. For Cognizant, the coming months may determine whether the current suspension remains a regulatory setback—or becomes part of a much larger legal and political battle over the future of skilled-worker immigration in America.
