US Steps Up H-1B Compliance Checks Amid Complaints Against Cognizant and Other Indian IT Companies

The crackdown follows complaints that some companies have misused the visa programs to displace American workers or underpay foreign employees. Investigators are scrutinizing employer compliance with wage and working condition requirements.

Cognizant, one of the largest users of H-1B visas, has not commented on the investigation. The company previously settled a lawsuit alleging discrimination against non-Indian workers, but the current probe focuses on visa compliance.

The Labor Department's actions signal a more stringent enforcement posture, which could lead to fines, debarment from the visa programs, or criminal referrals for companies found in violation. Indian IT firms, which rely heavily on H-1B visas for their U.S. operations, are likely to face increased scrutiny.