Cognizant faces PERM suspension: Here’s why Indian IT workers nearing 6-year H-1B limit may face trouble | Today’s news

Trouble continues to mount for Indians in the United States after President Donald Trump’s Department of Labor announced the suspension of IT services giant Cognizant’s records.

Cognizant has been barred from making new filings under the Program Electronic Review Management (PERM) system, which US employers use to sponsor foreign workers for permanent residency, as authorities investigate allegations of fraud and abuse of employment-based immigration programs.

The latest move by the Trump administration is likely to create more challenges for Indians employed by Cognizant who are nearing the six-year limit on their H-1B visas.

Read also | US suspends green card issuance by Cognizant amid visa fraud investigation

Labor Department Suspends Cognizant’s Filing: What We Know

Anthony D’Esposito, the Labor Department’s inspector general, announced the decision Tuesday, saying Cognizant’s PERM filings had been suspended, adding that his office was working with other Labor Department officials and the White House Fraud Task Force. U.S. officials have not yet disclosed specific charges, the number of applicants affected or the length of the suspension involving the IT services giant, which moved its headquarters from India to the U.S. decades ago.

This comes as US authorities have stepped up investigations into alleged abuses of the H-1B and PERM programs, including allegations of underpaying workers, filing fraudulent claims and replacing US workers. The investigation could have specific implications for Indian professionals, who make up a significant portion of H-1B recipients and green card applicants who have jobs.

What is PERM? Why does it matter?

PERM is usually the stepping stone for foreign workers seeking permanent residency in the US. However, it is neither a type of visa nor a guarantee of permanent residence in the country.

Before filing an immigration petition with US Citizenship and Immigration Services (USCIS), a US employer must first obtain a labor certification from the Bureau of Employment and Training of the Department of Labor. As part of this process, the employer must demonstrate that there are no qualified US workers available for the position and that hiring the foreign worker will not adversely affect the wages or working conditions of US workers.

As part of this process, employers are required to advertise the position, evaluate candidates, and maintain records explaining why qualified US applicants were not hired.

Read also | Cognizant’s US green card suspension: What it means

What does this decision mean for Indian IT workers?

According to an Indian Express report, the suspension could delay the green card process for Cognizant employees who have not yet reached the PERM submission stage. While the suspension is in effect, the IT services giant cannot file new PERM applications, preventing those employees from getting a priority date and continuing their employer-sponsored green card applications.

This development could be particularly significant for Indian applicants, who already face significant delays in processing employment-based green cards. According to the US State Department’s September 2026 visa bulletin, the Indian EB-2 category was designated as “not available” for final action, while the final action date for EB-3 was January 1, 2014. US immigration rules also limit the number of employment-based green cards that can be issued to nationals of any individual country.

The latest development could also have implications for Indian workers approaching the normal six-year threshold for H-1B status. Washington allows some H-1B visa holders to extend their stay in the country beyond the usual limit in cases where labor certification has been filed early enough. Thus, a delay in starting the PERM process could have greater consequences for workers approaching the six-year H-1B mark. In contrast, workers with approved petitions who are waiting for a green card number to become available are in a different situation and may, subject to eligibility requirements, be eligible for H-1B extensions for up to three years at a time.

Read also | H-1B visa: US approves review of proposal to end 60-day post-dismissal grace period

For affected Indian workers, the suspension could add more uncertainty to an already lengthy U.S. immigration process, especially for those nearing the six-year H-1B limit.