Cognizant PERM suspension: what it means for Indian tech workers in US

Existing approvals are not automatically wiped out simply because new filings have been suspended.
Cognizant PERM suspension: what it means for Indian tech workers in US
Cognizant website
Updated on
3 min read

The US administration’s immigration crackdown has put Indian technology professionals at Cognizant under fresh uncertainty after the Department of Labour (DOL) suspended the company’s filings for Permanent Labour Certification, better known as PERM.

The move is significant because PERM is a key step for foreign workers seeking employment-based Green Cards in the US. Cognizant is also one of the largest employers of H-1B workers, making the action potentially important for thousands of Indian technology professionals.

The suspension comes as the Trump administration steps up scrutiny of H-1B visas and employment practices involving foreign workers.

What is PERM and why does it matter?

PERM is a labour certification process administered by the DOL. It is generally required before an employer can sponsor an eligible foreign worker for certain employment-based Green Cards.

The process is intended to establish that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.

For an Indian tech worker, the process typically involves:

  • The US employer identifying a permanent position.

  • The employer completing the required recruitment and labour-market steps.

  • The employer filing a PERM application with the DOL.

  • If PERM is approved, the Green Card process can move to subsequent stages with US Citizenship and Immigration Services (USCIS).

A suspension therefore does not automatically mean that an employee’s existing immigration status or previously approved application has been cancelled. The impact depends on the stage of each individual case and on what further action the DOL takes.

Immediate concern

On September 8, DOL Inspector General Anthony D’Esposito announced that Cognizant’s PERM filings had been suspended.

For Cognizant employees waiting for employer-sponsored Green Cards, the immediate concern is that the company will not be able to file new PERM applications while the investigation continues.

Existing approvals, however, are not automatically wiped out simply because new filings have been suspended.

Indian tech workers vulnerable

Cognizant has a large population of foreign technology workers and has historically been a major user of the H-1B programme.

USCIS data for fiscal 2026 show Cognizant among the biggest H-1B employers--it ranked behind Amazon, Infosys and TCS. This matters because H-1B and PERM are closely linked for many foreign technology professionals.

An H-1B visa allows a foreign worker to work in the US in a specialty occupation. PERM, in contrast, can form an important part of the longer-term Green Card route.

Any disruption to either process can therefore create uncertainty for workers who have built their US careers around obtaining permanent residency.

Cognizant already under scrutiny

The PERM suspension is not the first time Cognizant’s hiring practices have come under scrutiny.

The company and Cloudera have previously faced allegations that they discriminated against US workers in favour of temporary visa holders. These remain allegations unless established through legal proceedings.

In March 2026, a federal jury in Manhattan awarded $8.4 million to a New York University professor and former Cognizant employee who alleged that he was dismissed after raising concerns about the company’s hiring practices.

The former employee, Jean-Claude Franchitti, claimed he had been removed from a role paying $350,000 a year after about a decade with the company. He alleged that Cognizant favoured Indian workers as part of a lower-cost hiring model.

What Indian workers need to know

For Indian technology professionals at Cognizant, the immediate priority is to understand where their individual immigration case stands rather than assume that the suspension affects everyone in the same way.

Workers should keep track of:

  • PERM status: Find out whether the PERM application has been filed, is pending, has already been approved or has not yet been initiated.

  • Existing approvals: A suspension of new filings does not automatically cancel previously approved PERM applications.

  • H-1B status: Check the validity of the current H-1B approval, petition and employment arrangements.

  • Green Card stage: The consequences can vary considerably depending on whether the case is at the PERM, I-140 or later stage.

  • Employer communication: Employees should seek clarity from Cognizant’s immigration or human-resources team about the status of their individual cases.

  • Legal advice: Workers with pending or time-sensitive immigration matters should consider obtaining advice from a qualified US immigration lawyer.

  • Policy changes: Immigration rules, fees and processing requirements can change rapidly, so workers should verify the latest position with USCIS, the DOL or their legal adviser.

For now, the Cognizant PERM suspension is best viewed as a major warning sign rather than an automatic cancellation of Green Card prospects for all its Indian employees.

The bigger concern is that the US administration’s scrutiny of H-1B and employment-based immigration is becoming broader. For Indian tech workers, that could mean longer processing times, greater employer scrutiny and potentially higher costs before the path to permanent residency becomes clearer.

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