Cognizant green card filings suspended in US: What it means for workers

The US Department of Labour has suspended Cognizant’s ability to file new permanent labour certification applications, or PERM filings, putting a fresh hurdle in the green card process for employees of the multinational IT services company founded in Chennai.

 

The action comes as the Trump administration steps up scrutiny of the H-1B and employment-based immigration systems over alleged visa fraud. The suspension was announced by Department of Labour Inspector General Anthony D’Esposito, according to news agency PTI.

 

D’Esposito said the investigation into Cognizant and Cloudera, another technology company, was being conducted by the White House Fraud Task Force and other Labour Department officials. “Threats to American workers will NOT be tolerated,” he said, according to PTI.

  

What is PERM and why does it matter?

 

PERM, or Program Electronic Review Management, is generally the first major step an employer takes when sponsoring a foreign worker for a US employment-based green card.

 

According to PTI, employers seeking PERM approval generally have to demonstrate that there are no qualified and available US workers for the position and that employing a foreign worker will not adversely affect the wages or working conditions of US workers.

 

Once the labour certification process is completed, an employer can proceed with subsequent stages of the employment-based green card process.

 

Therefore, a suspension of new PERM filings can affect foreign employees who are waiting for their employer to begin the green card sponsorship process.

 

What does the Cognizant suspension mean for employees?

 

The immediate impact is on new PERM filings, rather than all existing immigration cases.

 

The suspension prevents Cognizant from submitting new PERM applications while the investigation continues, according to the Department of Labour inspector general’s announcement cited by PTI.

 

This means employees who were expecting Cognizant to start their PERM process could face delays. The development is relevant for H-1B workers who are looking to transition from temporary employment status to permanent residency.

 

However, the suspension does not, by itself, mean that existing green cards have been cancelled or that Cognizant employees’ H-1B status has been terminated.

 

The status of individual cases would depend on the stage they have reached and any further action taken by US authorities.

 

Why is Cognizant under scrutiny?

 

The move is part of a wider investigation launched by the Trump administration in July into alleged fraud involving the H-1B and PERM employment visa programmes, PTI reported.

 

Cognizant is a major US employer and has historically been a significant sponsor of H-1B workers. The company was founded in Chennai in 1994 and is now headquartered in Teaneck, New Jersey, according to PTI.

 

Data shared by US Citizenship and Immigration Services showed that Cognizant received approvals for 3,510 H-1B visa petitions as of June 30, compared with 9,413 approvals in 2020, PTI reported.

 

The latest action therefore adds another layer of scrutiny for a company with a large population of foreign workers.

 

What should Indian workers know?

 

For Indian professionals at Cognizant, the key distinction is between new PERM sponsorship and existing immigration status.

 

Workers awaiting the start of their employer-sponsored green card process may face uncertainty or delays. Those with existing approved labour certifications or other completed stages are not automatically affected simply because new filings have been suspended.

 

The investigation is still ongoing. Any wider consequences for Cognizant employees will depend on the findings of the Labour Department and any further action by the Trump administration.