USA · updated 1h ago · 3 min read
US Department of Labour Suspends Cognizant And Cloudera PERM Filings Amid Visa Fraud Probe
DOL suspended Cognizant’s new PERM filings amid an investigation into alleged visa fraud. Cloudera’s PERM filings were also suspended, signaling broader probe into visa-program abuse.
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PERM filings suspended
The US Department of Labour suspended permanent labour certification filings by Chennai-founded Cognizant and software firm Cloudera as the Trump administration steps up its crackdown on alleged fraud and misuse of employment visa programmes.
“US has suspended permanent labour certification, or PERM, filings by Chennai-founded IT services company Cognizant”
Labour Department Inspector General Anthony D’Esposito announced the suspension, saying, “Threats to American workers will NOT be tolerated.”
The suspension affects the Program Electronic Review Management (PERM) process, which the US Department of Labour uses to certify that qualified US workers are not available for a particular permanent job and that hiring a foreign worker will not adversely affect wages and working conditions.
Cognizant is headquartered in Teaneck, New Jersey, and the reporting cites USCIS data showing it received 3,510 H-1B petition approvals as of June 30, compared with 9,413 in 2020.
The Indian Express also notes that the US Department of Labour has not disclosed the specific allegations against either company, nor how many PERM applications are affected or how long the suspension will last.
Investigation and voices
The suspension was announced as part of an investigation into alleged fraud involving the H-1B and PERM employment programmes, with the Labour Department’s Office of Inspector General launching the probe in July and conducting it in coordination with the White House Fraud Task Force.
In a post on X, D’Esposito said, “Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant’s PERM filings are suspended.”
The Deccan Herald frames the action as preventing Cognizant and Cloudera from filing new applications under PERM, while also stating that there is “currently no confirmed report” that TCS, Infosys, Wipro or HCL have had their PERM filings suspended.
Newsweek adds that the suspension prevents Cognizant from moving forward with new PERM applications while the investigation remains active, and it reports that no criminal charges were announced and officials have not publicly detailed the specific allegations against the company.
The reporting also says the inspector general separately announced that PERM filings by Cloudera had been suspended, with D’Esposito writing, “One more. @cloudera: PERM filings SUSPENDED,” on X.
What it means next
The suspension could delay green card sponsorship efforts for foreign employees whose cases depend on a new PERM filing, while the reporting emphasizes that the post did not say how many employees or applications are affected.
“The suspension prevents Cognizant from moving forward with new PERM applications”
The Indian Express notes that the US Department of Labour has not disclosed how long the suspension will last, and it says the immediate question is how long the suspension will remain in place and whether the investigation will lead to further action.
The Hindu quotes EIITREND CEO Pareekh Jain warning that a prolonged suspension could create a talent-retention risk for Cognizant if it affects employees already in the green-card queue, and it says employees could consider moving to other companies if their permanent-residency process remains stalled.
Newsweek adds that the action does not automatically cancel existing PERM approvals, employment-based green cards, or H-1B visas that have already been approved, and it cites USCIS Employer Data Hub data showing Cognizant secured approval for 3,510 H-1B visa petitions through June 30 of fiscal year 2026.
In parallel, Newsweek reports a Cloudera spokesperson saying, “Cloudera is proud to hire American workers,” and it says the company told the outlet it has cooperated fully with the investigation while working to resolve the matter.