For thousands of Indian technology professionals in the United States, the green card is the finish line of a long race. It usually comes after years on an H-1B visa, with a lot of paperwork, patience, and uncertainty along the way. That race just got harder for one group of workers. The US Department of Labor has suspended new PERM filings by Cognizant, the Chennai-founded IT services giant, and by software company Cloudera. The suspension comes as Washington steps up its scrutiny of alleged fraud in employment-based immigration programmes.
If you work in IT, or your family depends on someone who does, here is what happened, what it does and does not mean, and how to protect yourself.
What Actually Happened
The announcement came from Anthony D’Esposito, the Labor Department’s Inspector General, who said the two companies’ PERM filings had been suspended and that his office was investigating. He framed the move as a defence of American workers, saying “Threats to American workers will NOT be tolerated.
Reports say the action was coordinated with the White House Fraud Task Force and other officials. It also follows a larger investigation into alleged fraud in the H-1B and PERM programmes that the administration launched in July.
Much remains unknown. The Labor Department has not publicly detailed the specific allegations against either company. It has not said how many applications are affected or how long the suspension will last. Cognizant and Cloudera are named, but the full scope of the probe is not clear.
First, What Is PERM?
PERM stands for Program Electronic Review Management. It is the Labor Department’s labour certification process, and it is usually the first formal step in an employer-sponsored green card case.
Before a company can sponsor a foreign worker for permanent residence, it must show two things:
- It tested the US labour market and found no sufficient, willing, qualified and available American workers for the job.
- Hiring the foreign employee will not hurt the wages and working conditions of similarly employed US workers.
Only after the Labor Department certifies this can the employer move on to the immigrant petition (Form I-140) and, eventually, the green card application itself. Think of PERM as the gate. If the gate is closed for a particular employer, nobody behind it can move forward.
What the Suspension Does Not Do
Some of the reactions online have been more alarmist than the facts support, so here is what the suspension does not appear to do.
It does not cancel existing green cards. People who already hold permanent residence are unaffected.
It does not automatically cancel existing PERM approvals. Workers whose labour certifications have already been granted are not immediately affected, according to the reporting so far.
It does not end H-1B status. A worker on a valid H-1B visa keeps that status. The action concerns new PERM filings, not visas already approved.
It does not mean a conviction. This is an investigation and a suspension of filing privileges. No findings have been announced, and Cognizant has not been publicly shown to have committed fraud.
Who Is Hit Hardest
The workers most exposed are those who were on the cusp of starting the process. Many tech professionals begin their green card journey only after several years on an H-1B visa. If a Cognizant employee’s PERM had not yet been filed, or was about to be, that case is now stuck until the suspension is lifted or the employee finds a new sponsor.
An industry analyst quoted in Indian media called this “the tip of the iceberg”, warning that closer scrutiny of the green card process could add a new layer of immigration risk for tech workers. That is one expert’s view, not a certainty, but it captures the anxiety many families feel.
The timing makes it worse. H-1B holders are limited to six years in most cases, with extensions possible only under specific conditions. A freeze that wastes even a few months can matter when the clock is already running.
Why Indian Workers Feel It Most
Indian nationals make up a very large share of H-1B beneficiaries, and Indian professionals also face the longest waits in the employment-based green card queue. Per-country limits mean that even after PERM and the I-140 are approved, many Indians wait for years before a visa number becomes available.
That makes every early step precious. When a PERM is delayed, you do not just lose a few weeks. You may lose your place in the sequence of events that eventually determines your priority date. If you want to understand how that waiting game works month to month, our breakdown of the October 2026 Visa Bulletin shows how India’s categories moved and why every month of delay in the early stages can compound later.
Could Other Indian IT Firms Be Next?
This is the question dominating conversations in IT circles. Cognizant has long been a major H-1B sponsor, and PERM is widely used across the Indian IT services sector. Companies such as TCS, Infosys, Wipro and HCLTech also sponsor employment-based green cards for Indian employees.
The Inspector General’s remarks hinted at a wider crackdown. But hinting is not the same as acting. Commentators note there is currently no evidence that other Indian firms will be forced to cut US hiring, move operations or sharply reduce their use of foreign workers. Anyone who tells you with certainty that TCS or Infosys is next is guessing.
What does seem likely is higher scrutiny across the board. Companies that sponsor large numbers of foreign workers should expect more audits, more questions on recruitment practices, and more demand for documentation. Some may respond by hiring more locally in the US and relying less on visa-based relocations, a shift the industry was already drifting toward.
Why the Government Is Doing This
The political backdrop matters. The administration has made “protecting American workers” a central theme of its immigration policy, and the PERM programme is built on exactly that principle: prove no qualified American is available, or do not sponsor.
Critics of the system have long argued that some employers run recruitment ads designed to fail, or only go through the motions of testing the labour market. Supporters of employers counter that the process is paperwork-heavy and that rules are applied inconsistently. Both sides agree the programme is under a microscope. The new investigation signals that enforcement, not just rulemaking, is now a key tool.
This is also not happening in isolation. Pressure on H-1B workers has been growing on several fronts, including proposals that could shrink the breathing room workers have after losing a job. If you have not read it yet, our piece on how Trump’s latest H-1B proposal could remove the 60-day grace period explains why that matters alongside the PERM news. Taken together, the direction of travel is clear: less margin for error for foreign workers.
What Affected Workers Can Do Right Now
If you are a Cognizant employee, or work for any company that sponsors green cards, a few practical steps make sense.
1. Find out exactly where your case stands. Ask HR or your company’s immigration counsel whether your PERM has been filed, is pending, or has been certified. The answer determines whether you are affected.
2. Keep your own records. Maintain copies of your passport, I-797 approval notices, pay stubs, job letters, and any PERM, I-140 or I-485 receipts. Do not rely solely on your employer to hold them.
3. Confirm your H-1B timeline. Count how many months of your six-year limit remain. Know whether you have a basis for extension, such as an approved I-140 or a PERM filed long enough ago.
4. Talk to an independent immigration attorney. Company lawyers represent the company, not you. A second opinion on your options, including portability, is worth the fee.
5. Do not panic-resign. Switching employers can restart parts of the process, and the rules around timing are complicated. Make major moves only after legal advice.
6. Stay informed through official sources. Watch announcements from the Labor Department and USCIS, plus reputable news outlets, rather than forwarded messages.
The Financial Side of Waiting
Immigration uncertainty does not stay confined to immigration. It bleeds into big decisions such as buying a home, taking on a long-term loan, or planning for children’s education. Many Indian H-1B holders are already pausing property purchases because their long-term status feels unsettled. Our look at why Indian H-1B holders are rethinking homeownership shows how this hesitation has been building, and the Cognizant news is likely to deepen it for those affected.
A sensible approach is to keep your finances flexible. Maintain a stronger emergency fund than usual, avoid commitments that assume you will be in the US five years from now, and consider how a sudden change in status would affect your family.
What Employers Should Take Away
The lesson for companies is just as important. Employers that sponsor foreign workers should review their recruitment documentation, ad placements, applicant tracking and wage determinations now, not after a notice arrives. Clean, well-documented processes are the best protection when scrutiny rises. Companies that cut corners may find that a single investigation can freeze sponsorship for every employee in the pipeline, as this case shows.
What to Watch Next
Several developments will shape how serious this becomes:
- Whether the Labor Department reveals the specific allegations against Cognizant and Cloudera.
- How long the suspension lasts, and whether it is lifted, narrowed or made permanent.
- Whether other large sponsors are named in similar actions.
- Whether existing pending cases get any extra scrutiny.
- Any new rules or enforcement guidance on PERM recruitment standards.
Until those answers arrive, the honest summary is that this is a serious but still limited action. It is serious because PERM is a mandatory step and a freeze can stall careers. It is limited because existing green cards, existing certifications, and valid H-1B statuses are not being swept away.
Final Thoughts
The suspension of Cognizant’s PERM filings is a reminder of how dependent the employment-based immigration path is on the conduct of a single employer. When a company comes under investigation, the people at the bottom of the funnel, ordinary engineers and analysts who did nothing wrong, can be left waiting for answers they cannot control.
For Indian IT workers, the best response is calm preparation. Know your status, keep your documents safe, seek independent advice, and avoid decisions driven by rumours. The situation is still developing, and the next few weeks should show whether this stays a two-company enforcement action or becomes the start of a wider crackdown.
This article is for general information only and is not legal advice. Consult a qualified immigration attorney about your specific situation.
