# Expert Opinion

By [DYLIT Chronicles](https://dylit.info/user/dylitmediabuzz)

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USA Labor Department Freezes Cognizant's Green Card Filings Amid Fraud Probe What Happened The U.S. Department of Labor has suspended Cognizant's ability to file new PERM (Program Electronic Review Management) applications, the first formal step employers take when sponsoring workers for U.S. employment-based green cards. Labor Department Inspector General Anthony D'Esposito announced the move on September 8, 2026, saying it stems from a joint investigation with the White House Fraud Task Force into Cognizant and fellow tech company Cloudera. "Threats to American workers will NOT be tolerated," D'Esposito said, according to the Press Trust of India. The suspension took effect immediately and blocks Cognizant from submitting fresh labor certification filings while the probe continues. The Department has not disclosed how long the freeze will last or detailed the specific violations under review. Why It Matters Cognizant, founded in Chennai and now headquartered in New Jersey, ranks among the largest sponsors of H-1B visas in the country, employing thousands of foreign nationals, many from India, across its U.S. technology operations. Because PERM certification underpins most employment-based green card cases, the suspension could stall permanent residency plans for a meaningful share of the company's workforce. The action lands as the Trump administration widens its crackdown on the H-1B system, and it follows a separate case in which a federal jury found Cognizant had discriminated against non-Indian employees. Industry watchers say the fallout could reach beyond Cognizant. Companies like TCS, Infosys, Wipro and HCL depend on similar visa pipelines, and some analysts expect those firms to draw closer attention next. Experts See a Broader Enforcement Shift Immigration attorneys say the Cognizant case fits a pattern of tightening enforcement that has built through 2026, marked by a shift to a wage-weighted H-1B lottery, a proposed $100,000 filing fee for certain petitions, and closer USCIS review of specialty-occupation claims. Legal experts expect regulators to scrutinize prevailing wage compliance, labor condition application attestations, and whether a genuine employer-employee relationship exists behind each sponsorship, particularly at firms that place workers with third-party clients. IT staffing and outsourcing firms, which historically post lower approval rates than direct tech employers, look especially exposed. Attorneys point out that the Justice Department has already settled cases this year with staffing firms including Compunnel Software Group, LanceSoft and Elegant Enterprise-Wide Solutions over hiring and recruitment practices tied to visa holders. What It Means for Employers and Workers For employers, the advice from immigration lawyers is consistent: tighten recordkeeping, verify wage-level determinations, and document how each sponsored role meets specialty-occupation and prevailing-wage standards, since requests for evidence and processing delays are becoming more common industry-wide. For Cognizant employees and applicants caught in the freeze, the practical effect is uncertainty. Green card cases that depend on new PERM filings cannot move forward until the suspension lifts, and no timeline has been given. Workers already mid-process on earlier filings appear unaffected for now, though those caught in limbo may want to consult immigration counsel about alternative visa categories or timing while the investigation continues.