US Visa Crackdown Spreads to Tech Firms: Cognizant, Cloudera Face Green-Card Freeze Amid Visa Fraud Probe
The U.S. Department of Labor has suspended permanent labor certification filings for IT services giant Cognizant, halting the primary initial step required for the company to sponsor foreign workers for U.S. green cards.
The U.S. Department of Labor has suspended permanent labor certification filings for IT services giant Cognizant, halting the primary initial step required for the company to sponsor foreign workers for U.S. green cards. Announced by federal officials on Tuesday, the move forms part of a nationwide crackdown by the Trump administration into alleged employment-based visa fraud and labor market abuses.
The suspension blocks Cognizant from submitting new filings under the Program Electronic Review Management (PERM) system while federal regulators review its immigration compliance practices. EB-1 Green Cards for Indians Could Soon Become Unavailable, US State Department Warns.
Federal Enforcement Action
U.S. Department of Labor Inspector General Anthony D’Esposito confirmed the enforcement action publicly, stating that the freeze was executed in coordination with the White House Fraud Task Force. Officials confirmed that data software company Cloudera’s PERM processing has also been suspended under the same anti-fraud initiative.
"Threats to American workers will not be tolerated," D’Esposito stated in a public release detailing the investigation. Authorities emphasized that federal agencies are actively pursuing leads tied to potential visa exploitation, misrepresentation, and labor market practices that impact domestic workforce conditions.
Impact on Green Card Sponsorship
The PERM labor certification process requires U.S. employers to demonstrate that no qualified domestic workers are available for a position before sponsoring a foreign national for permanent residency. By freezing Cognizant's ability to submit new certifications, the government effectively halts the start of the permanent residency pipeline for the company's foreign staff. US Green Card Wait Time: Indians Face Potential 179-Year Delay in EB-2 Category.
The suspension applies strictly to new PERM applications and does not automatically invalidate previously approved green card certifications or existing foreign worker visa statuses unless specific fraud is proven in individual cases.
Wider Sector Scrutiny
Cognizant, headquartered in Teaneck, New Jersey, is historically one of the largest corporate sponsors of H-1B visas and employment-based immigration applications in the United States. The current freeze arrives alongside heightened enforcement across the tech sector, where federal agencies have increased scrutiny over foreign worker reliance and wage structures.
Industry analysts suggest the probe into Cognizant could signal expanded compliance audits for other major IT service providers operating in the U.S. market. The Department of Labor has not yet disclosed a timeline for concluding the investigation.
(The above story first appeared on LatestLY on Sep 09, 2026 01:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).