US H1B visa fraud investigation puts Indian IT giant Cognizant under scanner

The US Department of Labour has launched a wide-ranging investigation into alleged fraud involving the H-1B and PERM work visa programmes, with a senior federal official naming Indian IT major Cognizant among companies under scrutiny.

The investigation is being led by the Department of Labour's Office of Inspector General (OIG), which said it is examining allegations of fraudulent visa applications, exploitation of foreign workers and practices that may have undercut American workers. The probe is part of the Task Force to Eliminate Fraud, led by US Vice President JD Vance.

Speaking to Fox Business on Wednesday, Labour Department Inspector General Anthony D'Esposito said investigators had already begun issuing subpoenas and were pursuing multiple leads.

"We've already started to issue dozens of subpoenas; we are going to make sure that we track down every lead. We have whistleblowers talking about some of the biggest companies like Cognizant, who have been sort of... in the chatter of issues with PERM and H-1B visas," D'Esposito said.

He did not accuse Cognizant of any wrongdoing or provide details of specific allegations. The company had not publicly responded to the remarks till Wednesday.

Addressing personnel at the Wisconsin Air National Guard's 128th Air Refueling Wing, Vice President JD Vance said the administration was stepping up efforts to tackle fraud in employment-based visa programmes.

"American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labour is fighting back against it," Vance said.

According to reports, Vance said the Labour Department had already sought dozens of subpoenas and launched multiple investigations.

"Big corporations and fraudsters overseas are using this program to undercut the wages of American workers," he said.

"If you are trying to take advantage of that visa program, you are not allowed into the United States."

He did not present specific evidence to support his broader allegations against companies or foreign workers.

According to the Office of Inspector General, investigators are examining allegations that some employers and labour brokers submitted fraudulent H-1B and PERM applications, exploited foreign workers through coercive wage-kickback arrangements, hired foreign labour at below-market wages and misused visa programmes intended to address genuine labour shortages.

"These abuses undermine the integrity of Department of Labour programmes designed to address genuine labour shortages—not to line the pockets of bad actors at the expense of American jobs," the agency said.

The OIG also said the investigation would examine suspected human trafficking and forced labour networks linked to guest worker visa programmes.

"The OIG is determined to root out every scheme that preys on vulnerable workers and takes jobs from American workers," it said.

The H-1B visa programme is widely used by US technology companies to hire highly skilled foreign professionals, with Indian nationals accounting for the majority of H-1B approvals each year. The PERM labour certification process is a key pathway for employment-based green cards.

The expanded federal scrutiny could have significant implications for major technology companies, outsourcing firms and thousands of foreign workers, particularly Indians employed in the US technology sector.