The US Department of Labour has launched a major investigation into alleged fraud involving the H-1B and PERM work visa programmes, with a senior federal official naming Indian IT giant Cognizant among the companies being scrutinised.
The investigation is being led by the Department of Labour’s Office of Inspector General (OIG), which said it has uncovered alleged schemes involving 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, news agency PTI reported, citing Fox Business.
Cognizant named by Labour official
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 wrongdoing or provide details of any specific allegations. As of Wednesday, the company had not publicly responded to the remarks.
JD Vance says H-1B fraud hurts American workers
Speaking at the Wisconsin Air National Guard’s 128th Air Refueling Wing on Wednesday, Vice President JD Vance said the administration was intensifying its crackdown on fraud in employment visa programmes, describing it as part of a broader effort to protect American workers, The Hill reported.
“American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labour is fighting back against it,” Vance said.
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According to The Hill, 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.”
Vance did not present specific evidence to support his broader allegations against companies or foreign workers during the speech, The Hill reported
What the investigation is about
According to the Office of Inspector General, investigators are examining allegations that some employers and labour brokers:
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- Submitted fraudulent H-1B and PERM visa applications.
- Exploited foreign workers through coercive wage-kickback arrangements.
- Undercut American workers by hiring foreign labour at below-market wages.
- Used the visa system to profit rather than address genuine labour shortages.
The OIG said such practices undermine programmes designed to fill legitimate skill shortages in the US labour market.
“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.
Focus on worker exploitation
The watchdog said the investigation also targets 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,” the statement added.
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Why it matters
The H-1B visa programme is widely used by US technology companies to hire highly skilled foreign professionals, with Indian nationals accounting for the vast majority of H-1B approvals each year. The PERM labour certification process is also a key pathway for employment-based green cards.
Any expanded federal scrutiny of H-1B and PERM filings could have implications for major technology companies, outsourcing firms and thousands of foreign workers, particularly Indians employed in the US technology sector.
