The US Department of Labor has suspended Cognizant’s PERM filings amid a nationwide investigation into alleged fraud involving employment visa programmes. The action prevents the IT services company from submitting new applications for permanent labour certification while the probe continues. The move could also increase scrutiny of other major Indian IT firms

The US Department of Labor has suspended Cognizant’s permanent labour certification (PERM) filings as the Trump administration steps up its investigation into alleged fraud involving employment-based visa programmes.

The action makes Cognizant one of the latest companies to come under scrutiny in a nationwide probe launched in July. Cloudera has also faced a suspension of its PERM filings following an investigation involving the White House Fraud Task Force and other government officials.

US Department of Labor Inspector General Anthony D’Esposito announced the action on Tuesday, warning that the administration would take a tough stance against practices it believes could disadvantage American workers.

"Threats to American workers will NOT be tolerated." He added, "Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant's PERM filings are suspended. @DOLOIG is on the hunt," referring to Keith Sonderling, Acting Secretary, Department of Labour. "Alongside @WHFraudTF, we're following facts, fraud and finances. Handcuffs await," he added.