Cognizant faces PERM suspension: Here's why Indian IT workers nearing H-1B's 6-year limit could face trouble

Cognizant’s PERM filing suspension could delay Green Card applications for Indian workers and create added challenges for those nearing the six-year H-1B limit, amid an existing backlog in employment-based immigration.

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.

Labor Department suspends Cognizant's filings: What we know

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.

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.

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.

About the Author

Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.

^{Get Latest real-time updates}

Stay updated with the latest Trending, India, World and US news.

HomeNewsUs NewsCognizant faces PERM suspension: Here's why Indian IT workers nearing H-1B's 6-year limit could face trouble