Cognizant Faces PERM Suspension: Here's Why Indian IT Workers Nearing H-1B's 6-Year Limit Could Face Trouble

(MENAFN- Live Mint) Trouble continues to mount for Indians in the United States after the Department of Labor, under President Donald Trump's administration, announced a suspension of IT services giant Cognizant's filings.

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 probe allegations of fraud and abuse of employment-based immigration programmes.

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

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According to reports, Anthony D'Esposito, the Labor Department Inspector General, announced the decision on Tuesday and said that 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. US officials have not yet revealed the specific allegations, the number of applicants affected, or the duration of the suspension affecting the IT services giant, which moved its headquarters from India to the US decades ago.

This comes at a time when US authorities have intensified scrutiny of alleged abuses involving the H-1B and PERM programmes, including accusations of underpaying workers, submitting fraudulent applications, and replacing American employees. The investigation could have particular implications for Indian professionals, who make up a significant proportion of H-1B recipients and employment-based Green Card applicants.

What is PERM? Why does it matter?

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

Before filing an immigration petition with US Citizenship and Immigration Services (USCIS), a US employer must first obtain labour certification from the Department of Labor's Employment and Training Administration. Under this process, the employer must establish that there are no qualified US workers available for the position and that hiring a foreign worker will not adversely affect the wages or working conditions of American employees.

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

Also Read | Cognizant's US green-card filings suspended: What it means What does the 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 filing stage. As long as the suspension remains in place, the IT services giant cannot file new PERM applications, preventing these employees from obtaining a priority date and moving forward with their employer-sponsored Green Card applications.

The development could be particularly significant for Indian applicants, who already face a substantial backlog in employment-based Green Card processing. According to the US State Department's September 2026 Visa Bulletin, India's EB-2 category was marked“unavailable” for final action, while the final-action date for EB-3 was January 1, 2014. US immigration rules also cap the number of employment-based Green Cards that can be issued to nationals of any single country.

The latest development could also have implications for Indian workers who are nearing the normal six-year limit on H-1B status. Washington allows certain H-1B visa holders to extend their stay in the country beyond the usual limit in cases where a labour certification was filed sufficiently early. The delay in initiating the PERM process could therefore have greater consequences for employees approaching the six-year H-1B limit. By 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, qualify for H-1B extensions of up to three years at a time.

Also Read | H-1B visa: US clears review of proposal to end 60-day grace period after layoffs

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

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