The US Department of Labor is preparing a major investigation into alleged misuse of the H-1B and PERM visa programmes, with IT services companies including Cognizant expected to come under scrutiny, according to a Fox Business report.
Labour Department Inspector General Anthony D’Esposito announced the probe during an interview with Fox Business on Wednesday.
He described it as the Trump administration’s first major investigation into alleged H-1B and PERM fraud, labour trafficking and the displacement of American workers.
“This is another example where fraud is fueling violent crime,” D’Esposito said.
He further claimed that some cases involving foreign labour and visa abuse were linked to cartels and transnational gangs.
“Much of the visa and human trafficking that we see when it comes to this foreign labour is tied to cartels and transnational gangs,” he said.
The investigation could place fresh pressure on major IT outsourcing firms that rely heavily on foreign workers and employment-based immigration programmes.
Further details on the scope of the probe and the companies likely to be examined are expected to emerge as the investigation progresses.
