A tech giant with over 350,000 employees and a long history of heavily utilizing H-1B (specialty occupation work visa) status has suddenly had a critical step in its Green Card application process paused.
WorldWay Immigration has noted that on September 9, 2026, local time, according to relevant media reports, the U.S. government has suspended new PERM (Permanent Labor Certification) application filings by Cognizant, a major IT services company. Meanwhile, federal agencies are investigating alleged fraud in the company's H-1B and PERM programs.
In fact, this news was personally confirmed a day earlier by the Inspector General of the U.S. Department of Labor.
On September 8, U.S. Department of Labor Inspector General Anthony D'Esposito stated on his official social media account that Cognizant's PERM applications had been suspended, and the U.S. Department of Labor Office of Inspector General was conducting an investigation.
He also revealed that the investigation involves both the H-1B and PERM programs and is being carried out in coordination with entities including the White House Fraud Task Force. His public statement was quite firm: “No threat to American workers' rights will be tolerated.”
For many foreign nationals who have worked in the United States long-term, PERM is directly tied to whether the subsequent Green Card application process can be smoothly initiated. Once an issue arises on the employer's side, even if there are no irregularities with the employee's own job or legal status, green card plans that were proceeding on schedule may suddenly face added uncertainty.
I. A Major H-1B "Sponsor" Under Investigation
Why Is It Attracting So Much Attention?
Cognizant is by no means an ordinary enterprise.
As of the end of 2025, the company had approximately 351,600 employees worldwide, with about 256,900 located in India, making it one of the world's major IT consulting and outsourcing services firms.
It is also a major user of U.S. H-1B visas. In recent years, Cognizant's H-1B approval numbers have increased significantly: averaging over 2,500 approvals annually from FY 2022 to FY 2024; and as of June 30 in FY 2026, 3,510 H-1B petitions had already been approved.
After obtaining an H-1B, the next step for many foreign employees is often waiting for the company to initiate the PERM process to prepare for long-term residency in the U.S.
PERM has a crucial defining feature: it must be filed by the employer. The employer is required to complete recruitment in accordance with regulations and prove that there are no qualified U.S. workers available to fill the position.
This also means that an employee's Green Card progress is heavily influenced by the employer. Whether the company is willing to initiate the process, whether the recruitment process complies with regulations, and whether the enterprise itself is under investigation can all directly impact application progress.
Therefore, what the Cognizant incident truly reminds foreign workers in the U.S. is:
When your long-term immigration status relies on an employer, changes at the company may directly affect your personal status planning.
II. Not Just Cognizant
The U.S. Is Expanding Employer Scrutiny
Looking back, one will find that Cognizant is not an isolated case.
In May this year, the U.S. Department of Labor took action against tech company Cloudera, suspending the processing of all its PERM applications for 180 days. At the time, the U.S. government determined that there might be issues with some of the company's recruitment procedures, including whether qualified U.S. workers were truly given a fair opportunity to apply for the relevant positions.
Then in July this year, the U.S. Department of Labor Office of Inspector General announced a crackdown on potential fraud in H-1B and PERM programs. Investigation priorities include fraudulent applications, wage issues, unauthorized use of foreign workers, and non-compliant behavior by certain enterprises and employment agencies. (Click to read WorldWay's previous report: Another Hurdle on the Path to U.S. Residency! H-1B/PERM Scrutiny Escalates)
In August, the DOL Inspector General also traveled to Dallas, Texas to conduct on-site inspections of business addresses associated with a large volume of H-1B petitions. One office address was linked to over 500 approved H-1B petitions, yet showed virtually no signs of active business operations on site.
In addition, "Project Firewall," launched by the U.S. Department of Labor in 2025, continues to strengthen oversight of H-1B employers. Official data shows that nearly 200 enterprises suspected of abusing the H-1B program have been investigated.
From Cloudera to Cognizant, an increasingly clear trend emerges: U.S. oversight of H-1B and PERM is expanding from individual applicants to employers. Whether a business actually operates and whether job positions and recruitment procedures comply with regulations are becoming focal points of scrutiny.
III. H-1B Rules Are Changing Too
Increasing Variables for Staying in the U.S.
While employer oversight is tightening, H-1B regulations themselves are also undergoing changes.
Starting from FY 2027, the H-1B selection process has adopted a new wage-weighted selection mechanism, giving higher weight to applicants in higher wage levels. For recent international student graduates with relatively lower wage levels, winning the H-1B lottery will become even more difficult in the future.
In August this year, the U.S. Department of Homeland Security proposed a new fee structure, planning to impose an additional fee of $103,265 on certain cap-subject H-1B petitions. (Click to read WorldWay's previous report: Sudden H-1B Shift! Proposed Additional Fee of $103,000)
At the same time, the 60-day grace period for H-1B holders following job loss is also facing adjustments. (Click to read WorldWay's previous report: Another Blow to H-1B! 60-Day Unemployment Grace Period Proposed for Cancellation)
Looking at these changes together, it is evident that H-1B faces new shifts and uncertainties across every aspect—from lottery rules, employer audits, and labor costs, to the post-layoff status grace period.
V. Long-Term U.S. Residency
Take a Proactive Approach to Immigration Planning
H-1B and PERM remain important pathways for many people to work and develop long-term in the U.S.
However, if you have a clear goal to reside long-term in the United States, it is worth considering an additional layer: Must your long-term status rely solely on a single employer?
By contrast, the Reform EB-5 Investment Immigration Program requires no employer sponsorship and avoids the H-1B lottery altogether. For qualified applicants currently residing in the U.S., provided visa availability conditions are met, one can concurrently file the I-526E immigrant investor petition and the I-485 adjustment of status application, allowing career and long-term residency status to advance independently.
Currently, the three set-aside visa categories under the Reform EB-5 remain in a no-retrogression window. Two major milestones are approaching: September 30, 2026 marks a crucial deadline for grandfathering provisions; starting January 1, 2027, the minimum EB-5 investment amount is expected to rise from $800,000 to $900,000–$950,000 or higher.
For families with definite long-term U.S. plans, rather than waiting until changing jobs, layoffs, company PERM suspensions, or policy shifts occur before considering status options, it is wiser to thoroughly explore different pathways in advance to secure an extra option for the future.
As a Top 500 Asian Brand with over 20 years of dedication to immigration services, WorldWay Group originated in Hong Kong in 1998 and operates professional entities in both Hong Kong and Mainland China. WorldWay has long closely monitored changes in U.S. immigration policies and provided status planning and project services for families planning to move to the United States.
Currently, WorldWay focuses on promoting the I-956F approved rural EB-5 project “Deer Valley · Snowridge Residences”, as well as the “Marriott · Royal Lake Bay Resort” EB-5 project launched in its fifth partnership with Peachtree Group, offering project choices for different families. From now until September 30, 2026, applicants initiating EB-5 immigration can enjoy limited-time exclusive discounts, further reducing filing costs during this key window.
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