Cognizant has come under scrutiny in the US over alleged violations related to employment-based green card applications and H-1B visas.
US Labour Department Inspector General Anthony D’Esposito said in a post on X that the department had suspended Cognizant’s Programme Electronic Review Management (PERM) filings and was investigating the company. He did not provide details on the alleged violations or specify the nature and scope of the investigation.
PERM is the labour certification process US employers generally need to complete before sponsoring foreign workers for employment-based green cards. The process requires employers to obtain a prevailing wage determination and test the US labour market by advertising the role to potential domestic candidates before proceeding with sponsorship.
The development could have wider implications for Indian IT services companies, which have historically relied on H-1B visas and other employment-based immigration routes to deploy skilled professionals in the US. Companies such as TCS, Infosys, Wipro and HCLTech could face greater scrutiny if US authorities expand their examination of employment visa practices across the sector.
However, Indian IT companies have been reducing their dependence on H-1B visas in recent years. Many have increased local hiring in the US while shifting more project work to offshore delivery centres. Cognizant, like several of its Indian-origin peers, continues to have a substantial portion of its workforce based in India.
The latest development comes amid heightened attention in the US on employment-based immigration and the use of foreign-worker visa programmes by large technology employers. D’Esposito’s comments also suggested that the Labour Department’s scrutiny could extend beyond Cognizant, although no further companies were identified.
