Washington DC: The United States Department of Labour has frozen permanent labour certification submissions for Cognizant, marking the foundational stage through which companies sponsor overseas workers for permanent residency, as the Trump administration intensifies enforcement against alleged visa malpractices.
A Labour Department official posted “Handcuffs await” on social media while announcing details of the measure, which is linked to a countrywide inquiry launched in July.
US Department of Labour Inspector General Anthony D’Esposito said on Tuesday that permanent labour certification documents for Cognizant and Cloudera had been halted following a probe conducted alongside the White House Fraud Task Force and related authorities.
Announcing the enforcement action on X, D’Esposito stated, “Threats to American workers will NOT be tolerated.”
He added, “Fighting fraud is a TEAM SPORT. Sonderling47 and I are for real. Cognizant’s PERM filings are suspended. DOLOIG is on the hunt,” referring to Keith Sonderling, Acting Secretary, Department of Labour.
“Alongside WHFraudTF, we’re following facts, fraud and finances. Handcuffs await,” he further remarked.
The development comes amid heightened regulatory scrutiny in the United States over corporate reliance on foreign-worker visa and employment-based immigration systems.
Large Indian IT services companies have historically relied on overseas talent and US immigration programmes to staff client projects.
PERM, or Program Electronic Review Management, is the process through which US employers seek Department of Labour clearance to sponsor foreign workers for permanent residency.
Under the process, corporate sponsors are generally required to demonstrate that qualified and available domestic candidates are not available for the position and that hiring an overseas worker will not reduce local wage structures or workplace standards.
In July, the Trump administration launched a wide-ranging probe into alleged fraud involving the H-1B and PERM employment visa channels.
Cognizant was established in Chennai in 1994 and currently has its headquarters in Teaneck, New Jersey.
Figures published by US Citizenship and Immigration Services show that Cognizant received approvals for 3,510 H-1B visa applications up to June 30, compared with 9,413 approvals recorded in 2020.
The suspension of Cognizant’s PERM filings marks an aggressive new phase in the US government’s campaign against alleged employment visa wrongdoing, placing both Cognizant and Cloudera under direct investigation.
