The United States is tightening the screws on misuse of H1B and PERM work visas, crucial pathways for tech professionals seeking American jobs. US Vice President JD Vance announced an investigation to curb large-scale fraud and irregularities plaguing the visa program, with several major companies, including IT giant Cognizant, emerging as names under scrutiny.
US Department of Labor Inspector General Anthony D’Esposito outlined details of the scam, stating that certain employers and labor brokers colluded to create fake applications, exploit foreign workers by underpaying them, and obtain visas through fraudulent means. The government determined that these malpractices were causing American citizens to lose out on jobs that should rightfully be theirs. Vance warned that American jobs must go to Americans, not to foreign fraudsters exploiting the system.
Whistleblowers have provided the government with key evidence related to these visa scams, with the names of large companies like Cognizant surfacing in the process. Allegations suggest that these big companies have been cornering a disproportionate share of the H-1B visa quota through the lottery system using improper methods. US authorities have already issued court notices to these companies to gather comprehensive evidence on the matter.
Indians account for over 70% of all H-1B visas issued by the US, with 71% going to Indian nationals in the last fiscal year alone. This has prompted the US government to launch its investigation, a move likely to significantly impact Indian IT professionals seeking to work in America through companies like Cognizant, as well as the broader software industry there. The US government has made clear that no company found engaging in fraud will be spared.