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

The U.S. Department of Labor has activated a fraud task force to conduct aggressive compliance checks on H-1B and PERM visa usage, with a focus on Indian IT companies. Investigators are now issuing subpoenas and fielding whistleblower complaints that specifically name Cognizant and other firms.

The task force's actions mark an escalation in enforcement against alleged visa abuses, which include misuse of the H-1B program for temporary foreign workers and the PERM labor certification process for permanent residency. Whistleblower claims have alleged that some companies misrepresented job openings or paid lower wages than required.

Cognizant, a major IT services provider with a large U.S. workforce, has not commented on the investigation. The company previously faced a class-action lawsuit alleging discrimination against non-Indian employees in favor of H-1B visa holders, which it settled in 2019.

The Labor Department's increased scrutiny comes amid broader political and public pressure to reform the H-1B program, which critics argue displaces American workers. The task force's findings could lead to fines, back pay, or debarment from future visa programs for companies found in violation.

Industry observers expect the compliance checks to intensify, with more subpoenas and whistleblower cases likely to surface in the coming months. The department has not released a timeline for concluding its investigations.