Indian IT major Cognizant has come under the spotlight after the US department of labour launched a sweeping investigation into alleged fraud involving H-1B and PERM work visa programmes, with a senior federal official naming the company as one of those being scrutinised.
The probe, announced on Wednesday, is being carried out by the office of the inspector general (OIG) under the department of labor as part of the task force to eliminate fraud, an initiative led by US Vice President JD Vance.
Why Cognizant is in focus
Cognizant was specifically mentioned by labor department Inspector General Anthony D’Esposito while discussing the ongoing investigation.
“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, you know, in the chatter of issues with PERM and H-1B visas,” D’Esposito told Fox Business.
His remarks have drawn attention because Cognizant is one of the largest users of US work visas among Indian technology companies and employs thousands of professionals in the United States.
At this stage, US authorities have not accused Cognizant of wrongdoing. However, the company’s inclusion in discussions around whistleblower complaints and visa-related investigations has put it under increased scrutiny.
What are the allegations?
According to the labor department’s OIG, investigators have uncovered what they described as widespread schemes involving employers and labour brokers.
The agency alleged that some employers submitted fraudulent visa applications, exploited foreign workers through coercive wage-kickback arrangements and depressed wages by bringing in workers at rates below prevailing market levels, an official statement said, reported news agency PTI.
“These abuses undermine the integrity of Department of Labour programs designed to address genuine labour shortages – not to line the pockets of bad actors at the expense of American jobs,” the department said in a statement.
The OIG also said the investigation is aimed at dismantling human trafficking and forced-labour networks that may be exploiting foreign guest worker visa programmes.
“The OIG is determined to root out every scheme that preys on vulnerable workers and takes jobs from American workers,” the statement added.
JD Vance links probe to protection of American jobs
Vance framed the investigation as part of a broader effort to prevent abuse of the H-1B visa system and ensure that jobs are not unfairly diverted from American workers.
“We have a program called the H-1B visa program. We’re fighting for your taxpayer money but we’re also making sure that fraudsters don’t take advantage of these visa programs. This is a visa program that was set up to ensure that if you are a brilliant technology person or a brilliant scientist or a brilliant doctor, you could come to the United States and get access to this visa program,” he said.
Highlighting the administration’s enforcement push, Vance added: “Today the Federal Department of Labor has started dozens of subpoenas and investigations into foreign fraudsters who are trying to take advantage of the H-1B visa program… American jobs ought to go to American workers and not foreign fraudsters.”
(With PTI inputs)
