On September 8, 2026, DOL (Department of Labor) Inspector General Anthony D'Esposito announced that Cognizant's PERM filings had been suspended. Shortly after, it was revealed that both Cognizant and Cloudera had their PERM and H-1B processing suspended amid an ongoing fraud investigation being run jointly with the White House Fraud Task Force.
For employers, this signals intensified scrutiny of PERM and H-1B compliance.
These FAQs break down the details, misconceptions, and what the future looks like for everyone involved.
What did DOL Inspector General Anthony D'Esposito announce about Cognizant and Cloudera?
On September 8, 2026, DOL Inspector General Anthony D'Esposito posted on X that Cognizant's PERM filings had been suspended. In a following post, he also added that the DOL OIG (Office of Inspector General) was working with the White House Fraud Task Force and Labor Department leadership on the matter.
He later added that Cloudera's PERM filings were also suspended, and further stated that H-1B processing for both companies had also been suspended.
Why are Cognizant and Cloudera under investigation?
The investigation dates back to July 2026, when Inspector General Anthony D'Esposito announced a detailed probe into alleged H-1B and PERM fraud after concerns were raised by whistleblowers. These concerns centered on Cognizant being specifically involved in “issues with PERM and H-1B visas.” The inquiry is being run in coordination with the White House Task Force to Eliminate Fraud.
The types of misconduct under examination include the following:
- Fraudulent visa filings
- Wage-related abuses (including kickbacks, wage undercutting, and unpaid benching)
- Fraudulent recruitment practices
- Exploitation of foreign workers
Has DOL published the specific allegations against Cognizant or Cloudera?
No, DOL has not released a formal complaint or any document specifying acts, dates, job codes, or the number of affected applications for either company. Details about how many PERM or H-1B cases were involved, or how long the suspensions are expected to last have also not been disclosed.
Currently, only the general categories of misconduct DOL OIG is investigating are made public, and not any company-specific findings.
Has Cloudera faced DOL enforcement before this?
Yes, DOL imposed a 180-day PERM suspension on Cloudera in May 2026 over alleged discrimination in hiring U.S. workers.
This suggests a history of intensive DOL scrutiny of Cloudera that predates the newer, broader suspension covering both PERM and H-1B processing.
What types of misconduct is the DOL OIG examining in this investigation?
Based on the DOL OIG statements, the investigation is currently examining the following categories of alleged misconduct:
- Fraudulent or false visa applications: PERM and H-1B filings that misrepresent job duties, qualifications, recruitment efforts, or wages.
- Wage-related abuses: Includes wage kickbacks, undercutting U.S. workers' wages, and unpaid "benching."
- Fraudulent recruitment practices: False job postings, rigged hiring processes, or failing to genuinely test the U.S. labor market before sponsoring a foreign worker.
- Exploitation of foreign workers: Conditions that harm visa holders and/or disadvantage American workers.
These are currently the general categories referenced in news coverage of the DOL OIG investigation. It should be noted that this is not a company-specific charge sheet against either organization.
What does suspension mean for a company’s PERM filings?
A PERM suspension means that the employer cannot submit new Applications for Permanent Employment Certification (Form ETA-9089) with DOL while the suspension is in effect. PERM is the labor-certification step employers must generally complete before sponsoring a foreign worker for an employment-based green card, so a suspension effectively blocks the company from starting new green-card sponsorships during that window. In Cognizant and Cloudera's case, the suspension was later expanded to cover H-1B processing as well, which affects new or amended H-1B labor condition applications tied to these employers.
Does the suspension cancel green card applications that are already in process?
No. Green card applications that are already in process are not automatically cancelled. As per the DOL announcement report, the suspension does not wipe out approved PERM certifications, approved I-140 immigrant petitions, or existing H-1B statuses and visas. Rather, the impact depends largely on the stage of the process:
- If PERM hasn't been filed yet, the process is paused until the suspension lifts.
- If PERM is already approved, it generally remains usable to file an I-140, even during the suspension.
- If I-140 is already approved, it stands as a separate USCIS decision and isn't automatically revoked by a DOL suspension.
- If I-485 (adjustment of status) is already pending, USCIS can still adjudicate it, though it may issue a Request for Evidence or delay while the investigation plays out.
The suspension is aimed at blocking new PERM and H-1B filings instead of erasing prior approvals.
Does the suspension affect existing H-1B visa holders' status?
No. As per the current report, the existing H-1B statuses and visas are not cancelled or revoked due to the suspension.
The suspension does not affect the H-1B status that the workers already hold - only the new or amended H-1B related processing for these employers. With that said, attorneys are advising caution around international travel for workers who may require a new visa stamp, since consular officers could apply extra scrutiny given the high-profile nature of the investigation. The caution applies to future processing, rather than the current status being at risk.
How long will the suspension last?
DOL has not stated an expected duration for the Cognizant and Cloudera suspensions, and the timeline remains undisclosed. For context, DOL's earlier action against Cloudera in May 2026 (a separate matter, over alleged discrimination in hiring U.S. workers) led to a defined 180-day suspension. However, in this case, it's unclear whether the current suspension will follow a similar timeline or remain open-ended, which leaves the final outcome uncertain.
How are employees affected if their employer hasn't filed PERM yet?
The green card process will stall at the initial phase, since the employer cannot file new PERM applications while the suspension is still in effect. These employees’ cases cannot move forward until the suspension is lifted.
According to immigration attorneys, this is a delay rather than a dead end, although there is no public timeline for the suspension to be lifted.
Will the suspension affect employees whose PERM is approved but whose I-140 hasn't been filed yet?
This position is better than that of someone whose PERM hasn't been filed, but it isn't risk-free. An approved PERM can still be used to support an I-140 filing, even during a suspension on new filings, allowing the employer to move forward with the I-140 based on the existing approval. The caveat: if the suspension turns out to be connected to findings of fraud or misrepresentation in specific PERM filings, USCIS could closely scrutinize or question I-140s tied to those PERMs - though that depends entirely on the specific facts of the investigation, which are yet to be disclosed. Attorneys are generally advising employees in this position to push to get the I-140 filed as soon as possible, since an approved I-140 offers a more stable position.
Is an already approved I-140 at risk due to the suspension?
An approved I-140 is a decision made by USCIS, not DOL, and it is not automatically revoked simply because your employer's PERM program is suspended. In most cases, the employee can keep their priority date, and if they are in the U.S. and the priority date becomes current, they may still be able to file for adjustment of status (I-485), provided that the job offer remains valid and other requirements are met. The main risk scenario is if the employer later withdraws the I-140 or if it's revoked specifically due to findings of fraud - but a PERM suspension by itself doesn't trigger that outcome.
Can the I-140 or green card process still be affected by the investigation?
Yes, but indirectly. While a PERM suspension doesn't automatically cancel approvals you already hold, the investigation itself can cause ripple effects. For example:
- Heightened USCIS scrutiny on cases tied to your employer
- Possible Requests for Evidence
- Processing delays while the investigation continues, or
- Complications if your employer's PERM or I-140 filings are found to involve fraud.
Actual risks depend on details such as your case stage, your employer, and details of the investigation that haven't yet been made public.
What should employers document to protect themselves in a similar situation?
At minimum, employers should maintain clear, objective, and job-related documentation for why any U.S. applicants were rejected during PERM recruitment.
They should also maintain records of the full recruitment process itself. This includes:
- Where and how the job was posted
- Applicant flow
- Interview notes
- Criteria used to evaluate candidates
- Wage and worksite documentation: LCA wages, Public Access Files and actual work locations (particularly for employees placed with third parties, since these are common points of scrutiny in PERM and H-1B enforcement actions)
What we have to say
Employers should take a closer look at their PERM recruitment, H-1B compliance, compensation practices, and actual workforce conditions to make sure they're all consistent with one another - rather than treating immigration compliance as a paperwork exercise separate from how the business actually operates.
Employers relying on third-party placements or who haven't recently audited their LCA Public Access Files and PERM practices are in a particularly exposed position. The practical takeaway: audit your program before the government does, rather than after.
