Cognizant faces PERM suspension: Here's why Indian IT workers nearing H-1B's 6-year limit could face trouble

The U.S. Department of Labor recently suspended Cognizant's filings under the Program Electronic Review Management (PERM) system, which employers utilize to sponsor foreign workers for permanent residency. This move by the administration, under President Donald Trump, stems from allegations of fraud and abuse within the employment-based immigration programs.

The suspension poses significant challenges for Indian IT workers employed by Cognizant who are nearing the six-year limit on their H-1B visas, as the Department of Labor probes the allegations.

Cognizant, an Indian IT services giant, has had its headquarters in the U.S. for decades after moving from India. The company's PERM filings are currently barred, preventing new applications and delaying the Green Card process for its affected employees. The investigation has not revealed specific allegations, the number of applicants impacted, or the suspension's duration.

However, the freeze comes amid heightened scrutiny of alleged abuses involving the H-1B and PERM programs, including accusations of underpaying workers, submitting fraudulent applications, and replacing American employees.

The PERM process, often a stepping stone for foreign workers seeking permanent residency, requires employers to establish no qualified U.S. workers are available for the position and that hiring the foreign worker will not adversely affect American employees' wages or working conditions. Employers must advertise the position, evaluate candidates, and maintain records explaining why qualified U.S. applicants were not selected.

Cognizant's suspension could delay the Green Card process for its employees who have not yet reached the PERM filing stage, exacerbating the already significant backlog in employment-based Green Card processing for Indians. The delay could also impact Indian workers nearing the six-year H-1B limit, potentially affecting their ability to extend their stay in the U.S.