BENGALURU: The United States Department of Labour has launched an investigation into alleged fraud involving the H-1B and PERM employment visa programmes. Labour department inspector general Anthony D’Esposito said whistleblower complaints have referred to companies “like Cognizant” in connection with these programmes.D’Esposito told Fox Business that the office of inspector general (OIG) has already issued dozens of subpoenas and is pursuing leads related to alleged abuse of the employment-based visa system.The investigation comes even as Cognizant’s use of the H-1B programme has declined significantly over the past several years. US Department of Labour data shows the company filed 10,189 labour condition applications (LCAs) in 2018, compared with 3,436 in 2025. An LCA is a mandatory filing employers submit to the Department of Labour before sponsoring a foreign professional for an H-1B visa and attesting that the hiring will comply with wage and labour regulations. An email sent to Cognizant did not elicit a response till press time.The investigation, led by the OIG in coordination with federal law enforcement agencies, forms part of President Donald Trump’s administration’s broader crackdown on employment visa fraud under vice-president JD Vance’s task force to eliminate fraud.Announcing the probe, the OIG said it is intensifying enforcement efforts after uncovering alleged schemes in which employers and labour brokers submitted fraudulent visa applications, coerced foreign workers into wage-kickback arrangements, and used below-market wages to undercut American workers.According to the agency, the alleged abuses extend beyond paperwork violations and include labour trafficking, forced labour and exploitation of workers from foreign countries. It said the H-1B and PERM programmes are intended to address genuine labour shortages, not facilitate fraudulent hiring practices.
