US Government Halts Cognizant's Green Card Filings in Visa Probe

The United States government has suspended Cognizant's filings for permanent labour certifications, a crucial step in sponsoring foreign workers for green cards. This action comes as part of a heightened campaign against alleged visa fraud, driven by the Trump administration.

Anthony D'Esposito, Inspector General of the US Department of Labour, announced the suspension affecting both Cognizant and Cloudera during a news briefing. The investigation relates to a fraud probe that began in July, aiming to scrutinise the employment visa programmes.

D'Esposito highlighted the seriousness of the situation, stating, "Threats to American workers will NOT be tolerated." He further emphasized the collaborative effort in combating fraud, mentioning that their investigation is in coordination with the White House Fraud Task Force.

Cognizant, one of the largest sponsors of H-1B visas in the country, has previously faced legal challenges over discrimination against non-Indian workers, which raises concerns about other major Indian information technology firms, such as Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies, who also rely heavily on similar visa programmes.

The Department of Labour's suspension prevents Cognizant from submitting new permanent labour certification applications until an investigation into alleged fraud regarding its H-1B and PERM (Program Electronic Review Management) practices is finalised.

The PERM process requires employers in the US to demonstrate that there are no qualified American workers available for the roles they intend to fill with foreign employees and to show that hiring foreign workers will not adversely affect the working conditions or pay for American workers.

As of June 30, data from the US Citizenship and Immigration Services indicated that Cognizant had received approvals for 3,510 H-1B visa petitions since the beginning of the year, a notable decrease from the 9,413 approvals in 2020.

The suspension of Cognizant’s filings signifies a vigorous step by the US administration in addressing what it perceives to be fraudulent activities within employment visa programmes. Along with Cognizant and Cloudera, other companies may also be scrutinised as the investigation progresses.