The DOL Just Suspended Cognizant's PERM Filings… Here's What's Actually Happening
What's Actually Being Paused/Changed
On September 8, 2026, the Department of Labor's Office of Inspector General (DOL OIG) announced (via a series of posts on X and LinkedIn , not a formal DOL press release 🙄) that it has suspended the ability of both Cognizant and Cloudera to file new PERM applications. One thing to note here is that many people assume that these are both Indian Companies, and that this is part of the reasoning… that is not true. Both companies are headquartered in the U.S., even while having massive offshore presence.
The PERM (Permanent Labor Certification) is the first, and most arduous, step employers take to sponsor a foreign worker for an employment-based green card in the EB-2 or EB-3 category. It's filed with DOL's Office of Foreign Labor Certification, and it has to be certified before a case can move forward to the immigrant visa or adjustment-of-status stage with USCIS.
Inspector General Anthony D'Esposito framed the action as part of an active fraud investigation, posting that "threats to American workers will NOT be tolerated" and that his office is "following facts, fraud and finances" alongside the White House Fraud Task Force. About an hour later, he posted that Cloudera's PERM filings are suspended too but that's not a new development. Cloudera's filings have been suspended since May 12, 2026, under a separate, earlier DOL/DOJ enforcement action over alleged discriminatory hiring practices. It looks like the OIG grouped the two together in the same announcement thread, not opened a new case against Cloudera this week. It is also speculated that H-1B filings for Cloudera have been suspended, but that has not been confirmed (beyond a post).
As of this writing, DOL hasn't published a formal press release, a public order, or a cited statute or regulation for the Cognizant suspension specifically. Everything we know comes from the Inspector General's own social media posts and the news coverage built around them. Cognizant hasn't issued a public response yet either.
Who Is and Isn't Affected
Affected: Cognizant's ability to file new PERM labor certification applications.
Not affected (as far as reporting shows): Cognizant's existing or pending PERM cases for workers already in the pipeline, those are reportedly continuing to process normally.
Not affected: Cognizant's H-1B program. This is a PERM/green-card-track action, not an H-1B suspension. Some coverage has blurred that line, but they are two separate areas, and will be reviewed as such.
Not affected: Other prominant IT services or staffing companies. TCS, Infosys, Wipro, and HCLTech have had no PERM or H-1B action announced against them as of this writing. Indian press is speculating they could be next, but there's no reason borrowing trouble over "could face scrutiny" headlines.
Not the same story as it's being told: this isn't a new, industry-wide DOL rule blocking Indian companies from filing PERM. It's a company-specific enforcement action against Cognizant, specifically. This means that the Department of Labor has reason to believe something fraudulent has occured in Cognizant’s program. If you've seen it described as a blanket policy, that's an overstatement of what's actually happened so far.
Historical Context
This isn't the government's first major crackdown on tech recruitment. It happens more often than many realize. You may remember the DOJ and DOL teamed up to sue Meta (Facebook) back in 2021 for using restrictive recruitment tactics to bypass U.S. workers in the PERM process. Meta chose to settle for over $14 million rather than risk a full operational freeze, but had they fought it and lost, they likely would have faced a similar halt in PERM applications. Further, In May 2026, DOL and DOJ jointly suspended Cloudera's PERM filings for 180 days and sued the company over allegations it ran a "non-functional" recruitment process designed to make it look like no qualified U.S. worker was available. This is a pretty classic fact pattern in PERM fraud cases.
What's different about the Cognizant announcement is the channel: it came from the Inspector General's own X account, in real time, before any formal written order or press release existed. That's a more aggressive and immediate enforcement communication style than DOL OIG has typically used, and it's worth watching whether it becomes the norm like it has in other government spaces, because this means stories can break, and get amplified and overstated, well before the underlying legal action is documented anywhere official.
TLDR
If you're a Cognizant employee with a pending or planned PERM case: ask your immigration team directly whether your specific case is affected. "Suspended for new filings" doesn't mean an already-filed case is frozen.
If you work for a different IT or staffing company: there's no confirmed action against your employer right now. Don't change how you file a labor certification or H-1B extension based on this story alone.
If you're an employer with PERM cases in progress anywhere: this is a good moment to make sure your recruitment files, the documentation DOL requires to show no qualified U.S. worker was available, are complete and defensible. You should be doing this across the board at all times regardless of this story, but stories like this highlight exactly why it matters.
Everyone: Remember that this is not a direct attack on Indian companies, and wait for DOL to publish something official before treating this as policy. Right now it's an investigation and a suspension against one company, that was hastily announced on social media. We still need to wait for real press releases or documentation to confirm the full story.
This post is for general information only and is not legal advice. For guidance on your specific situation, please consult a licensed immigration attorney.
