US Labour Department Launches H-1B Fraud Probe, Cognizant Among Firms Under Watch
New Delhi: The US Department of Labour has initiated an investigation into suspected misuse of the H-1B visa programme along with allegations of labour trafficking and other fraudulent employment practices against Cognizant and other companies.
The US-headquartered IT services firm, Cogniaant, has a majority of its workforce in India.
“Today, we launched a massive H-1B fraud investigation. @POTUS promised the Golden Age of the American Worker – and he's delivering. Foreign labor fraud steals jobs from Americans, enables human trafficking, creates dangerous worksites, and threatens public safety. No more,” Anthony D'Esposito, inspector general at the US Department of Labour wrote on X on Thursday (July 9).
Today, we launched a massive H-1B fraud investigation. @POTUS promised the Golden Age of the American Worker—and he’s delivering.
Foreign labor fraud steals jobs from Americans, enables human trafficking, creates dangerous worksites, and threatens public safety.
No more. pic.twitter.com/MHSI7Upw5v
— Inspector General Anthony D'Esposito (@USLaborIG) July 8, 2026
In his television interviews, D'Esposito said notices have been sent to several companies accused of exploiting loopholes in the H-1B system.
“We have already issued dozens of subpoenas and will track down every lead,” he said, adding that whistleblower tips had pointed investigators toward firms including Cognizant.
The probe is reportedly part of a broader push to safeguard employment opportunities for US citizens.
Speaking at an event in Milwaukee on Wednesday, US Vice President J.D. Vance echoed this stance, stating, “American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labour is fighting back against it.”
This isn't the US administration's first move to rein in the H-1B programme. Trump had earlier signed an order introducing a one-time $100,000 fee on new H-1B petitions, a measure aimed at discouraging companies from over-relying on the visa route. That order, however, was struck down by a federal judge last month.
Indian nationals continue to make up the bulk of H-1B visa recipients, with the technology sector alone accounting for an estimated 60 to 70% of new applications in recent years, The Hindubusinessline mentioned in a report.
According to data released by HR services firm Xpheno, only 52,360 new H-1B visas have been approved so far in fiscal year 2026, a steep fall from 113,485 in 2025 and 139,692 in 2024.
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