US Department of Labor Suspends Cognizant's PERM Filings Amid H-1B Visa Investigation

Key Facts

• On September 8, 2026, the US Department of Labor suspended PERM filings for Cognizant and Cloudera.
• PERM (Permanent Labor Certification) is the initial formal step in employer-sponsored permanent residency applications in the US.
• PERM requires employers to demonstrate no qualified US workers are available for the job before sponsoring a foreign worker for permanent residence.
• The H-1B visa is a non-immigrant visa for specialty occupations, allowing temporary skilled work in the US.
• Cognizant is an IT services company founded in Chennai, India, with headquarters in Teaneck, New Jersey.
• As of September 9, 2026, no formal criminal charges had been filed against Cognizant or Cloudera.
• The suspensions are part of a broader investigation launched in July 2026 targeting wage-related abuses and fraudulent applications in the H-1B and PERM programs.

Background & Context

The PERM process is overseen by the US Department of Labor's Employment and Training Administration. It certifies that employment of a foreign worker will not adversely affect the wages and working conditions of US workers and that there are insufficient qualified US workers to fill the position. Once approved by the Department of Labor, the employer must file Form I-140 with US Citizenship and Immigration Services (USCIS) to continue the employment-based green card process.

H-1B visas allow employers to temporarily employ foreign workers in specialty occupations. PERM certification is required for those seeking permanent residence through employer sponsorship. The 2026 investigations reflect increased scrutiny of the integrity of the H-1B and PERM programs.

Why This Matters for Exams

Understanding the distinctions between H-1B visas and PERM labor certification is crucial for exams focusing on US immigration law, international labor policies, and global IT workforce trends. The 2026 investigation highlights regulatory enforcement in visa programs and labor protections, topics relevant for advanced competitive exams in international affairs, labor regulations, and immigration policy analysis.

Points to Remember

• PERM is a certification process confirming the lack of qualified US workers for a given job and protecting US labor conditions.
• H-1B visas allow temporary skill-based work but do not guarantee permanent residency.
• The suspension of PERM filings for Cognizant and Cloudera occurred amid a 2026 federal investigation into abuses in visa applications.
• Filing Form ETA-9089 is part of the PERM process, followed by Form I-140 submission to USCIS.
• Cognizant, being a major IT employer, had significant H-1B approvals in fiscal year 2026.

Practice MCQs

Question 1

1. What is the primary purpose of the PERM labor certification?
2. Which visa category is typically associated with temporary skilled employment in specialty occupations in the US?
3. When were PERM filings for Cognizant suspended?
4. Which US agency oversees the PERM labor certification?

Answer: 1) To certify no qualified US workers are available for the job and protect US labor conditions; 2) H-1B visa; 3) September 8, 2026; 4) US Department of Labor's Employment and Training Administration.

Question 2

1. What investigation prompted the suspension of PERM filings for Cognizant and Cloudera?
2. Where is Cognizant's headquarters located?
3. What is the next step after PERM certification in the employment-based green card process?
4. Have formal criminal charges been filed against Cognizant as of September 2026?

Answer: 1) A nationwide probe into wage-related abuses and fraudulent visa applications; 2) Teaneck, New Jersey; 3) Filing Form I-140 Immigrant Petition with USCIS; 4) No.

Question 3

1. Which form do employers file for permanent labor certification under the PERM program?
2. What is the role of USCIS in the PERM process?
3. What key difference distinguishes the H-1B visa from the PERM-based permanent residency path?
4. What is the significance of the 2026 investigation into H-1B and PERM programs?

Answer: 1) ETA Form 9089; 2) USCIS processes immigrant petitions and adjustment of status petitions; 3) H-1B is for temporary work, PERM is for permanent resident sponsorship; 4) It reflects heightened enforcement against wage abuses and visa fraud.