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Introduction
If you work in staffing or corporate immigration, you probably saw the news this week. The Department of Labor suspended PERM labor certification filings for Cognizant and Cloudera, and the announcement didn't come through a quiet press release. It came from the Labor Department's inspector general, posted directly on X, alongside a warning that "handcuffs await."
That's not the usual tone for an agency that processes green card applications. It tells you something about where enforcement is headed.
PERM, short for Program Electronic Review Management, is already one of the most document-heavy processes in US employment-based immigration. Every recruitment step, every wage determination, every ad placement gets logged and can be audited years later. Cognizant is not a small player here.
It's a Nasdaq-listed IT services giant with a long track record of sponsoring employees for green cards, and its filings are now on hold while investigators look into alleged fraud tied to its H-1B and PERM programs.
This piece breaks down what actually happened, why the PERM process makes this kind of suspension so damaging, and what staffing firms and employers should be doing right now to keep their own filings clean.
TL;DR
- The DOL suspended PERM labor certification filings for Cognizant and Cloudera amid an investigation into alleged H-1B and PERM visa fraud.
- The probe is being run with the White House Fraud Task Force, and no criminal charges have been filed yet.
- PERM is already expensive and compliance-heavy, which is exactly why a suspension hits harder than it would in a simpler visa category.
- The suspension blocks new filings, not previously approved certifications or existing H-1B petitions.
- Employers should treat this as a signal to audit recruitment records, wage determinations, and job posting compliance now, not after an inspector shows up.
What actually happened with Cognizant and Cloudera
On September 8, 2026, Labor Department Inspector General Anthony D'Esposito announced on social media that Cognizant's PERM filings had been suspended. A follow-up post confirmed Cloudera was affected too.
The inspector general did not mention any criminal charges against either company, and officials did not disclose the specific allegations, the number of applications affected, or how long the suspension would remain in force.
The investigation traces back to a probe the Labor Department's inspector general launched in July, looking into alleged fraud in the company's H-1B and PERM visa programs following whistleblower complaints.
The Department is coordinating with the White House Fraud Task Force, which signals this isn't a routine compliance check. It's a formal, multi-agency inquiry.
Timing matters here too. The suspension came a day after Cognizant announced plans to expand its American workforce, including hiring 1,500 US college graduates.
Whether that's coincidence or not, it puts the company in an awkward spot: publicly pledging to hire more Americans while under investigation for how it handles foreign worker sponsorship.
Cognizant's reliance on H-1B visas has actually dropped over the years. The company filed 3,436 Labor Condition Applications in 2025, down from 10,189 in 2018.
That decline doesn't erase the current allegations, but it's worth noting for anyone assuming this is a company still leaning heavily on the visa system the way it did a decade ago.
What the suspension does and doesn't cover
- The suspension prevents Cognizant from moving ahead with new PERM filings until the investigation is complete.
- It does not affect the company's existing approvals or its H-1B visa programs. So current green card sponsorships already in the pipeline aren't automatically dead.
- New ones, though, are frozen.
- For a company the size of Cognizant, that's still a significant operational problem. Every open requisition tied to a future PERM filing is now stuck.
Why PERM is different from other visa categories
A lot of people outside immigration law assume all visa sponsorship works roughly the same way. It doesn't.
PERM labor certification is arguably the most procedurally demanding step in the entire employment-based green card process, and that's exactly why this suspension is such a big story:
- Before an employer can even think about filing, they need a Prevailing Wage Determination from the DOL's National Prevailing Wage and Helpdesk Center. That alone can take months.
- Then comes recruitment: two Sunday newspaper ads, a 30-day job order with the State Workforce Agency, three additional recruitment steps for professional roles, and a mandatory internal job posting.
- Only after all of that, and only after a required waiting period, can the employer file Form ETA-9089.
- Every part of that recruitment has to be documented and kept on file, because the DOL can audit it.
This is the process's entire purpose: proving that no qualified, willing, and able US worker was available for the role, and that hiring a foreign worker won't hurt wages or working conditions for similarly employed Americans.
Compare that to a straightforward H-1B cap filing, which mostly comes down to a lottery and an LCA. PERM has no lottery. It has paperwork, deadlines, and audit exposure at nearly every stage.
The complexity is also the point. A process built to catch fraud is, by design, going to be the one where fraud allegations do the most damage once they surface.
For more on visa sponsorship strategy, compliance, and staffing best practices, explore H-1B visa sponsorship and compliance guidance.
Why this news matters beyond one company
Cognizant isn't a boutique staffing shop. It's one of the largest IT services providers in the country, with a workforce spread across major US markets and a long history of sponsoring employees through PERM and H-1B.
When a company of that size gets its filings suspended, other IT services firms pay attention, and so do the staffing agencies and consulting firms that compete with or supply talent alongside them.
Some outlets have noted there is currently no confirmed report that other major IT services companies such as TCS, Infosys, Wipro, or HCL have had their PERM filings suspended.
That's worth flagging, because it means this isn't (yet) an industry-wide freeze. It's targeted. But targeted enforcement actions have a way of expanding once investigators start pulling threads, especially when a task force with a name like "Fraud Task Force" is involved.
For staffing companies specifically, there's a second layer here:
- Many staffing firms place consultants with client companies that themselves sponsor green cards, or they sponsor candidates directly.
- If a major player like Cognizant is under this kind of scrutiny, it raises the bar for what "clean" documentation looks like across the whole industry.
- Recruiters and account managers should expect clients to start asking more pointed questions about compliance history before signing new staffing agreements.
What triggers a PERM audit or suspension, generally
DOL doesn't need a whistleblower every time. Audits can be triggered by:
- Wage levels that look inconsistent with the stated job requirements
- Recruitment ads that don't meet the required specificity or duration
- Patterns across multiple filings from the same employer that suggest the role was tailored to exclude US applicants
- Complaints from employees, former employees, or competitors
- Random selection, since DOL does run a percentage of filings through supervised recruitment
USCIS has separately flagged instances where H-1B petitions from a major IT consulting company classified skilled technology jobs at wage levels below what the positions' duties and requirements actually supported.
That kind of wage-level mismatch is a common thread in these investigations, and it's one of the easiest things for an employer to get wrong without realizing it.
What employers and staffing firms should do now
You don't need to be under investigation to feel the ripple effects of this. Enforcement attention tends to raise expectations across the board, including for companies that have never had a compliance issue.
Step 1: Audit your recruitment documentation
- Pull the recruitment files for any PERM cases filed in the last two years.
- Check that ad placements match what the regulations require and that your internal posting dates line up with your recruitment report.
Step 2: Review wage level assignments
- Make sure job duties and minimum requirements actually match the wage level you assigned.
- This is one of the most common gaps investigators find, and it's usually not intentional fraud.
- It's often just a job description written by HR that doesn't match what recruiters and hiring managers put on the requisition.
Step 3: Centralize your compliance file
- If your PERM records are scattered across different recruiters, different offices, or different vendors, consolidate them.
- An audit request from DOL usually comes with a tight response window, and scrambling to find a 2023 newspaper tearsheet is not where you want to be.
Step 4: Brief your hiring managers
- Hiring managers who write job requirements without understanding PERM rules can accidentally create documentation gaps.
- A short training session on why job postings need to match actual minimum requirements goes a long way.
What this means for candidates waiting on green card sponsorship
If you're a candidate whose employer has a pending or planned PERM filing, this news is unsettling even if your employer has nothing to do with Cognizant or Cloudera.
A few honest points worth knowing:
POINT 1 - Existing, already-approved labor certifications aren't affected by this kind of suspension. If your PERM was already certified and your I-140 is filed or approved, this news doesn't change your status.
POINT 2 - If your employer hasn't filed yet, ask direct questions about their compliance history and how they document recruitment. You're allowed to ask. A well-run immigration or HR department should be able to explain their process without hesitation.
POINT 3 - Diversifying where you look for sponsorship, whether that's a different employer or working with a staffing firm that has a track record of clean filings, is a reasonable response to increased enforcement scrutiny in the industry.
A reliable staffing partner matters - Consultadd
The recent PERM developments are a reminder that employers and staffing firms need more than access to technology talent. They need a staffing partner that understands the importance of careful screening, accurate documentation, clear communication, and a dependable hiring process.
That is where Consultadd can help.
With 15 years in business and more than 5,000 successful staffing engagements, we work with staffing firms and employers to help them find qualified technology professionals for contract, contract-to-hire, and long-term opportunities.
Our focus is on making the staffing process easier from the start:
- We source candidates quickly, screen them for relevant technical experience, verify key candidate information, and provide the details staffing partners need to evaluate a consultant before making a submission.
- Once a candidate is selected, our team continues to support the process through onboarding and beyond.
We provide technology talent across areas such as Full Stack Development, Python, Java, Cloud, DevOps, Data, and other in-demand technical skills.
PERM and visa compliance require careful documentation, but staffing decisions still need to move quickly. Having a reliable technology staffing partner can make it easier to find qualified talent without adding unnecessary complexity to the hiring process.
For staffing firms, that means having a dependable source of technology talent when a client requirement comes in, without having to start the sourcing process from scratch every time.
For employers, it means gaining access to screened professionals who can be evaluated against the technical and project requirements of the role.
If your organization needs reliable technology talent for upcoming contract or long-term requirements, talk to Consultadd. We can help you build a more responsive and dependable staffing pipeline. Contact Consultadd to discuss your next requirement.
Key takeaways
- DOL suspended new PERM labor certification filings for Cognizant and Cloudera amid an active fraud investigation involving the H-1B and PERM programs.
- No criminal charges have been announced, and the specific allegations haven't been made public yet.
- The PERM process is uniquely vulnerable to this kind of scrutiny because it requires extensive, auditable documentation at every step.
- Wage level mismatches and recruitment documentation gaps are common, often unintentional, sources of PERM compliance risk.
- Employers should treat this moment as a prompt to audit their own recruitment files rather than assuming enforcement will stay limited to one or two companies.
FAQs
What is PERM labor certification?
PERM labor certification is the first step in most employment-based green card sponsorships. The employer must prove to the Department of Labor that no qualified, willing US worker is available for the position and that hiring a foreign worker won't harm US wages or working conditions.
Why were Cognizant's PERM filings suspended?
The Labor Department suspended Cognizant's PERM filings while investigating alleged fraud committed by the company in its H-1B and PERM visa programs, following whistleblower complaints. No criminal charges have been filed as of this writing.
Does the suspension affect Cognizant employees who already have approved green cards or PERM certifications?
No. The suspension prevents new PERM filings, but it does not affect existing approvals or the company's H-1B visa programs.
How long does the PERM process normally take?
Recruitment alone typically takes around three months, and DOL's review and adjudication adds another three to seven months depending on caseload at the processing centers. Total timelines commonly run close to a year.
Are other IT services companies under the same investigation?
As of the current reporting, there's no confirmed report that other large IT staffing companies have had their PERM filings suspended. The action so far appears specific to Cognizant and Cloudera.
What should employers do if they're worried about PERM compliance?
Start with an internal audit of recent recruitment files, confirm wage levels match actual job duties, and make sure job postings and advertisements meet DOL's specific format and timing requirements. Working with an experienced staffing partner can also reduce documentation risk.