Cognizant finds mention as US begins visa fraud probe
The US Department of Labour has launched an investigation into potential fraud within H-1B and PERM visa programs, specifically mentioning Cognizant. The probe is part of a broader administration crackdown on visa abuse, including allegations of wage-kickback schemes and labor exploitation.
Why it matters
This investigation could significantly impact the operational models of major IT service firms that rely on foreign labor and may lead to stricter federal oversight of visa sponsorship processes.
BENGALURU: The United States Department of Labour has launched an investigation into alleged fraud involving the H-1B and PERM employment visa programmes. Labour department inspector general Anthony D'Esposito said whistleblower complaints have referred to companies "like Cognizant" in connection with these programmes.D'Esposito told Fox Business that the office of inspector general (OIG) has already issued dozens of subpoenas and is pursuing leads related to alleged abuse of the employment-based visa system.The investigation comes even as Cognizant's use of the H-1B programme has declined significantly over the past several years. US Department of Labour data shows the company filed 10,189 labour condition applications (LCAs) in 2018, compared with 3,436 in 2025. An LCA is a mandatory filing employers submit to the Department of Labour before sponsoring a foreign professional for an H-1B visa and attesting that the hiring will comply with wage and labour regulations.
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