Cognizant Technology Solutions and a whistleblower are appealing to a U.S. court to reconsider a ruling in a visa fraud case, while FedEx faces scrutiny for cutting American jobs amid increased H-1B hiring.
Cognizant Technology Solutions, alongside a former senior executive who has turned whistleblower, is urging a U.S. appeals court to reconsider a lower court ruling that allows a significant visa fraud case to proceed to trial. This unusual request aims to avert a lengthy and costly legal battle, potentially paving the way for a negotiated settlement.
The case traces back to 2023, when Jean-Claude Franchitti, then an assistant vice president at Cognizant, filed a complaint on behalf of the U.S. government. Franchitti alleged that the IT services giant intentionally misused visa categories to bring employees into the United States at a lower cost than what is mandated under the H-1B program.
According to the complaint, Cognizant utilized L-1 intracompany transfer visas and B-1 business visitor visas for roles typically filled by H-1B skilled workers. This strategy reportedly allowed the company to reduce its visa filing expenses while depriving the U.S. government of the higher filing fees and payroll tax revenue associated with H-1B workers.
In 2024, a New Jersey district court determined that Franchitti’s claims warranted a full trial, describing the alleged actions as a deliberate business strategy to circumvent immigration regulations and minimize payments to the government. Cognizant has contested this assertion, arguing that it cannot be held liable for visa fees related to applications it did not submit.
Both parties are now seeking an interlocutory appeal, which would involve a mid-case review by a higher court to overturn the 2023 ruling, according to reports from Mint.
The financial implications at the core of this case are substantial. Under current regulations, the total cost of filing an H-1B petition can reach several thousand dollars for employers, especially when mandatory U.S. Citizenship and Immigration Services (USCIS) fees are included. This is often significantly higher than the costs associated with L-1 petitions. In contrast, a B-1 business visa typically incurs a modest State Department application fee, generally under $200.
In a separate but related development, FedEx has been making headlines for its hiring practices. Following the acquisition of a federal delivery contract worth over $2 billion in late 2022, the logistics company’s hiring trends have shifted dramatically.
Public records cited by The Dallas Express indicate that FedEx has significantly increased its reliance on foreign workers under the H-1B visa program during this same period. Concurrently, the company has cut hundreds of positions held by American workers across various locations in the United States, revealing a troubling disconnect between federal contracting, domestic job losses, and a growing dependence on temporary foreign labor.
FedEx has responded to these claims, asserting that its hiring decisions are based on business needs and the specific skills required for certain roles. A spokesperson for the company stated that FedEx is committed to employee development and aims to build a workforce that aligns with its operational requirements. “FedEx is committed to offering employees the opportunity to grow and advance in their careers. Doing so helps our team members thrive, and FedEx prosper. Our strategy is centered around recruiting a skilled workforce that meets our unique business needs and hiring the most qualified candidates,” the spokesperson said.
This situation has drawn heightened criticism, particularly in the current political climate under the Trump administration, where many companies have become wary of hiring H-1B workers due to the steep $100,000 fee now associated with the program. Amid this backdrop, FedEx CEO Rajesh Subramaniam, who is of Indian American descent, has faced backlash from critics accusing the company of laying off American workers while increasing its use of foreign labor.
The layoffs at FedEx have continued into 2025. In November, the company announced it would eliminate 856 positions at one of its warehouse facilities. Earlier in the year, FedEx cut 305 jobs in Fort Worth and later disclosed another 131 layoffs across its operations in Garland and Plano.
The unfolding situations at Cognizant and FedEx highlight ongoing tensions in the U.S. labor market, particularly regarding the use of foreign labor amid domestic job cuts. As both cases develop, they will likely continue to attract attention from policymakers and the public alike.
For further details, refer to The Dallas Express.