US suspends green-card filings by Cognizant amid visa-fraud probe: ‘Threats to American workers…’

Cognizant's ability to file new applications for permanent labour certification, the first step toward acquiring a green card, has been suspended by the United States of America.

This comes amid the Trump administration's campaign against alleged visa fraud. According to a CNBC-TV18 report, the probe follows whistleblowers' complaints alleging wrongdoing in Cognizant’s use of immigration programmes.

On Tuesday, the US Department of Labour Inspector General Anthony D'Esposito announced that he has suspended the permanent labour certification filings by Cognizant and Cloudera.

"Threats to American workers will NOT be tolerated," D'Esposito said.

Cognizant will not make any fresh PERM filings until the US Department of Labour completes its investigation into alleged fraud involving the company’s H-1B and PERM programmes, he said.

D'Esposito added that the investigation into the two companies was conducted in coordination with the White House Fraud Task Force and other officials.

"Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant's PERM filings are suspended. @DOLOIG is on the hunt," D'Esposito said, referring to Keith Sonderling, Acting Secretary, Department of Labour.

“Alongside @WHFraudTF, we're following facts, fraud and finances,” D'Esposito said. “Handcuffs await.”

What is PERM?

Program Electronic Review Management (PERM) is the process through which US employers seek approval from the Department of Labour to sponsor foreign workers for permanent residency.

As part of the process, employers generally must demonstrate that no qualified and available US workers exist for the position and that hiring a foreign worker will not adversely affect the wages or working conditions of American workers.

Once the labour certification is approved, the employer can proceed to the next stages of the employment-based green card process.

Does suspension invalidate existing approvals?

No, the latest suspension applies only to new PERM filings by Cognizant.

It does not invalidate Cognizant’s existing approvals or suspend its H-1B visa programme, according to the Labour Department.

What is Donald Trump's US visa crackdown?

In July, the Trump administration launched a major investigation into alleged fraud involving the H-1B and PERM employment visa programmes. This suspension is a part of the heightened scrutiny of employment-based immigration programmes and alleged abuses by companies that rely on foreign workers.

Cognizant, founded in Chennai in 1994, now has its headquarters in Teaneck, New Jersey. As of 30 June, Cognizant received approvals for 3,510 H-1B visa petitions, compared with 9,413 in 2020, according to data from the US Citizenship and Immigration Services (USCIS).

Last week, the US Citizenship and Immigration Services said that it had identified H-1B petitions from a major IT consulting company in which technology jobs were classified at wage levels that did not match the duties and requirements of the positions.

The agency said it had denied and revoked multiple petitions, arguing that such practices could undermine wage protections and create unfair competition for US workers.