On September 8, 2024, U.S. Department of Labor Inspector General Anthony D’Esposito announced that Cognizant had its new PERM filings suspended amid an investigation into alleged fraud and misuse of employment‑based visa programmes. The same action was later applied to Cloudera, although the department has not disclosed how many employees are affected or the duration of the suspensions. The suspension stops new labor‑certification applications but does not automatically cancel existing H‑1B visas or approved green‑card petitions.
PERM, the Program Electronic Review Management system, is the first step employers must clear before filing the I‑140 immigrant petition that begins the green‑card process. Without a PERM, a company cannot move a foreign worker into the permanent‑residency pipeline, yet any worker already in the queue can still wait for priority‑date changes. Rajiv Dabhadkar, founder of NOSTOPS, warned that the suspension signals a broader shift: “Immigration policy and sponsorship practices are no longer just HR considerations; they are becoming central to long‑term workforce planning.”
The tighter scrutiny arrives at a time when the H‑1B cap of 85,000 visas, including 20,000 for advanced‑degree holders, is far below demand, making the lottery highly competitive. In addition, the Department of Homeland Security’s proposed removal of the 60‑day grace period would mean that a job loss could instantly void a worker’s status, turning a routine transition into an emergency. For an Indian professional who has built years of experience in the U.S., that uncertainty compounds the existing risk.
Indian tech workers now face a double squeeze: an increasingly difficult entry via H‑1B and a stagnant green‑card queue that already places nearly 1 million applicants behind the per‑country limit. A 32‑year‑old software engineer from Hyderabad told reporters that he had to postpone a planned move back home because his sponsor’s PERM was halted, adding that he fears the backlog will delay his family reunion indefinitely. Workers across the country are calling on lawmakers to address both the cap pressure and the backlog that disproportionately affects Indian nationals.
The Department of Labor’s investigation is still ongoing, with no public release of allegations or timelines. Meanwhile, the DHS proposal is in the rule‑making stage, and Congress may consider reforms to the employment‑based green‑card system in the coming fiscal year.