The United States government has suspended Cognizant's ability to file new applications for permanent labor certification, a key step in obtaining green cards, amid an ongoing visa-fraud investigation. The suspension was announced on Tuesday by the US Department of Labor Inspector General Anthony D'Esposito, following complaints from whistleblowers alleging misconduct in Cognizant's immigration practices, according to livemint.com.
The probe into Cognizant's visa filings is part of a broader crackdown on visa fraud initiated during the Trump administration. The Department of Labor's action specifically targets the company's use of immigration programs, which whistleblowers claim involved irregularities. Cognizant, founded in Chennai in 1994 and now headquartered in Teaneck, New Jersey, has not publicly detailed the allegations or the suspension's impact on its operations, livemint.com reported.
This suspension highlights increased scrutiny on large IT firms relying on foreign labor in the US, a sector that has faced regulatory challenges over visa misuse. Cognizant's case follows similar actions against other technology companies, reflecting the US government's efforts to protect American workers and tighten immigration controls. The move could affect Cognizant's talent mobility and hiring strategies in the US market, where green cards are critical for retaining skilled employees, per livemint.com.
The suspension remains in effect as the investigation continues, with no timeline provided for resolution. The Department of Labor's announcement on Tuesday marks a significant regulatory step against Cognizant, underscoring the ongoing enforcement of immigration laws within the tech industry, according to livemint.com.