International Relations

US Department of Labor Suspends PERM Green Card Filings for Cognizant

10 September 2026UPSCBank

In Brief

Pauses PERM labor certifications for Cognizant, impacting thousands of Indian IT professionals seeking US Green Cards.

The United States Department of Labor temporarily suspended PERM (Program for Electronic Review Management) labor certification filings for global IT firm Cognizant. The enforcement action halts the initial processing steps required for skilled foreign employees attempting to secure permanent residency through employment-based Green Cards.

The PERM labor certification process requires foreign employers to demonstrate that hiring a foreign worker will not adversely affect wages and working conditions of US workers, and that no qualified domestic candidate is available for the position. Indian technology professionals constitute the largest percentage of H-1B visa holders and employment-based Green Card applicants.

The suspension stems from regulatory compliance reviews into wage parity and recruitment advertising disclosures. Employment-based Green Card categories (EB-2 and EB-3) currently face decades-long backlogs for Indian nationals due to per-country cap limits established under the US Immigration and Nationality Act.

UPSC Study NotesHIGHGS2 — International Relations & Diaspora Management

GS2 — International Relations & Diaspora Management

📌 Exam Angle

UPSC may ask: "What is PERM labor certification and why did the US suspend it for Cognizant?" (Prelims MCQ). For Mains: "Analyze how US immigration restrictions impact Indian skilled workers and India's services export strategy under WTO Mode 4" — linking to bilateral relations and trade negotiations.

⚠️ Key Concerns

The suspension exposes India's vulnerability in services trade—Indian IT professionals depend heavily on US H-1B/Green Card pathways. The "per-country cap" creates decade-long backlogs, creating a structural disadvantage for Indian nationals compared to other countries. US wage parity enforcement may signal protectionist labor policies conflicting with India's Mode 4 commitments under WTO GATS framework.

💡 Why It Matters

India's $254 billion IT services sector relies on US market access; Green Card restrictions directly impact diaspora remittances, brain drain, and bilateral trade relations. This reflects growing US protectionism affecting India's largest services export and thousands of middle-class aspirants annually.

🔑 Must Remember

• PERM certification requires proof that hiring foreign workers won't harm US wages/employment conditions • Per-country cap limits restrict Indian nationals to ~7% annual Green Card allocation despite being 70% of applicants • Cognizant suspension stems from wage parity and recruitment disclosure violations

📝 Key Terms

PERM labor certificationEmployment-based Green CardH-1B visaper-country capWTO Mode 4 serviceswage parityIndian diasporaskilled worker mobility

US Department of Labor Suspends PERM Green Card Filings for Cognizant

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