The Trump administration has suspended Cognizant’s PERM filings amid an investigation into alleged fraud in employment visa programmes. (Express Photo/Wikimedia Commons)Cognizant is facing renewed scrutiny in the US after the Department of Labor suspended the IT giant’s ability to file new applications under the PERM labour-certification programme, amid an investigation into alleged fraud and misuse of employment-visa programmes.The Labor Department’s Office of Inspector General announced an investigation into alleged fraud and misuse of employment-visa programmes involving Cognizant. The department has suspended the company’s new PERM filings while the investigation continues. The specific allegations against Cognizant have not been publicly detailed.US probes Cognizant over alleged visa fraudLabor Department’s Inspector General Anthony D’Esposito, in a post on X, said the investigation was being carried out alongside the White House Fraud Task Force and other officials. In another statement, D’Esposito said authorities were following “facts, fraud and finances”. “Threats to American workers will NOT be tolerated. Alongside White House Task Force, we’re following facts, fraud and finances. Handcuffs await,” he added.Cognizant’s H-1B visa numbersCognizant’s workforce is heavily concentrated in India — the company’s latest annual filing says 256,900 of its 351,600 employees were based in India at the end of 2025.According to US Citizenship and Immigration Services (USCIS) data, Cognizant was able to secure 3,510 H-1B visa applications through June 30, 2026, in comparison with 9,413 H-1B visa approvals in 2020.What is PERM and how does it affect green cards?PERM, or Program Electronic Review Management, is the labour-certification process that US employers generally must complete before sponsoring foreign workers for permanent residence in many employment-based green-card categories. It is commonly used for workers already in the US on H-1B visas, although not every employment-based green-card category requires PERM.Under the PERM process, employers must conduct prescribed recruitment and attest that there are not sufficient able, willing, qualified and available US workers for the position, and that employing the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.Story continues below this adCloudera also faces US visa scrutinyApart from Cognizant, the Labor Department has also pulled up a US enterprise software company, Cloudera, that is responsible for providing data and AI platforms to businesses. Cloudera’s H-1B visa processing has also been suspended.In a statement to Newsweek, Cloudera’s spokesperson said, “Cloudera is proud to hire American workers. We do not discriminate against US workers—or anyone—based on citizenship status. We take the government’s allegations very seriously, and from the start, we have cooperated fully with this investigation. Cloudera is committed to fair, lawful, and open recruitment practices, and we will continue to cooperate with the government’s investigation as we work to resolve this matter.”Cognizant faced discrimination lawsuit in 2024The 2017 class action was brought by employees who alleged that Cognizant’s employment practices favoured South Asian employees and workers of Indian national origin. After an earlier trial ended with a deadlocked jury, a retrial in 2024 resulted in a verdict for the plaintiffs on their claim of a pattern or practice of intentional discrimination against non-South Asian and non-Indian employees.The lawsuit was filed in 2017 by three US citizens who identify as “Caucasian,” and the jury in the verdict concluded that Cognizant was involved in a “pattern or practice” of discrimination, favouring South Asians and Indian nationals, particularly those with visas.The Express Global Desk at indianexpress.com which delivers authoritative, verified, and context-driven coverage of key international developments shaping global politics, policy, and migration trends. The desk focuses on stories with direct relevance for Indian and global audiences, combining breaking news with in-depth explainers and analysis. A major focus area of the desk is US immigration and visa policy, including developments related to student visas, work permits, permanent residency pathways, executive actions, and court rulings. The Global Desk also closely tracks Canada’s immigration, visa, and study policies, covering changes to study permits, post-study work options, permanent residence programmes, and regulatory updates affecting migrants and international students. All reporting from the Global Desk adheres to The Indian Express’ editorial standards, relying on official data, government notifications, court documents, and on-record sources. The desk prioritises clarity, accuracy, and accountability, ensuring readers can navigate complex global systems with confidence. Core Team The Express Global Desk is led by a team of experienced journalists and editors with deep expertise in international affairs and migration policy: Aniruddha Dhar – Senior Assistant Editor with extensive experience in global affairs, international politics, and editorial leadership. Nischai Vats – Deputy Copy Editor specialising in US politics, US visa and immigration policy, and policy-driven international coverage. Mashkoora Khan – Sub-editor focusing on global developments, with a strong emphasis on Canada visa, immigration, and study-related policy coverage. ... Read MoreStay updated with the latest - Click here to follow us on Instagram