The U.S. Department of Labor’s inspector general, Anthony D’Esposito, has suspended the Program Electronic Review Management (PERM) pipelines and H-1B visa applications for two major technology firms: Cognizant and Cloudera.
D’Esposito announced the action during a recent discussion with television host Sara Gonzales. He emphasized that the move is part of the Trump administration’s ongoing efforts to combat foreign labor abuse.
The suspension follows a nationwide investigation led by D’Esposito in collaboration with acting Labor Secretary Keith Sonderling and the White House Fraud Task Force, which began in July. Investigators utilized tip lines, search warrants, and interviews to build the case for Tuesday’s enforcement action.
Cognizant, one of the largest U.S.-Indian information technology companies, has a significant history of H-1B sponsorships. In fiscal year 2026, it approved 3,510 H-1B applications while filing over 11,000 labor condition applications in fiscal year 2025. The company recently announced plans to hire only 1,500 U.S. college graduates in 2026.
The firm faced a 2024 federal jury verdict finding it discriminated against non-Indians in hiring and awarded $8.4 million to a former executive who claimed he was terminated after reporting “race and national origin discrimination.” A Manhattan jury later determined the company retaliated against the employee for complaining but did not find race or national origin discrimination.
Gonzales highlighted Cognizant’s role in Texas, noting that 41,571 H-1B beneficiaries were approved across 6,137 companies in the state alone during 2025. She stated, “They’ve been up to no good for a very long time now.”
D’Esposito emphasized that the suspension of Cognizant and Cloudera marks the beginning of a broader campaign against labor discrimination. “This isn’t the end,” he said. “We’re going to keep at it.”
