The US Department of Labor plans to publish a Notice of Proposed Rulemaking (NPRM) in July 2026 to modernize the PERM programme, according to reports from Business Standard, Bloomberg Law, and NewsNation. The proposed rule, titled 'Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program', seeks to update several aspects of the existing system that have remained largely unchanged for more than two decades. As per Bloomberg Law, this represents the biggest overhaul of the employment-based green card process since 2004, marking the first major update to the system in more than 20 years. The DOL has not yet released detailed draft rules, and the proposal is currently at the rulemaking stage with no rules yet in force. According to NewsNation, the agency plans to restructure the Program Electronic Review Management system as part of these comprehensive reforms. As of July 6, 2026, the rule remains at the proposed rule stage and has not changed filing rules for pending or new cases, placing employers and foreign workers in a waiting period.
The proposed reforms will require employers to make stronger efforts to recruit qualified American workers before turning to foreign talent, according to Bloomberg Law. Before an employer can sponsor a foreign worker for a green card under most EB-2 and EB-3 cases, it must first obtain a labour certification through the PERM process, as reported by Business Standard. The certification is designed to ensure there are no qualified and willing US workers available for the position, hiring a foreign worker will not adversely affect wages or working conditions of US workers, and the employer has conducted recruitment in line with government requirements. The revised framework is expected to include additional protections for US workers who have recently lost their jobs, ensuring that layoffs are taken into account during the labour certification process. Only after receiving PERM approval can an employer proceed with the immigrant petition and, eventually, the employee's green card application, subject to visa availability. As per NewsNation, employers may need to consider whether laid-off U.S. workers were available for similar positions, with a new rule potentially making these duties clearer, stricter or more heavily documented. The changes could result in stringent documentation standards and broader recruitment responsibilities for employers.
According to Bloomberg Law, the proposed reforms will revise the way PERM applications are reviewed, reflecting the widespread use of digital recruitment and other changes in the hiring process over the past two decades. The Department of Labor wants to revise the way PERM applications are reviewed, reflecting the widespread use of digital recruitment and other changes in the hiring process over the past two decades. The objective is to create a more efficient labour certification process while ensuring employers sponsor foreign workers only when genuine skill shortages exist. The changes are designed to strengthen oversight of employment-based immigration while updating recruitment rules for the modern labour market, as reported by Bloomberg Law. The proposed reforms include modernizing recruitment requirements by updating how employers test the US labour market before sponsoring foreign workers, strengthening protections for US workers, particularly in situations involving layoffs, and improving compliance standards through stricter requirements for non-discriminatory recruitment, hiring practices and record-keeping. As per NewsNation, federal officials are expected to focus on minimum standards for recruiting qualified U.S. workers, safeguards for workers affected by layoffs, employer compliance with PERM requirements, non-discriminatory recruitment and hiring practices, record retention and updates that reflect current labor market realities. The rule could create a cleaner framework for recruitment, or it could add more paperwork at a stage that already consumes months.
Under the existing PERM process, employers must complete a comprehensive recruitment process before filing an application. As per current regulations, employers must ensure that no qualified, willing and available US workers can fill the position before hiring a foreign national for permanent employment. To meet these requirements, employers generally complete a recruitment process that includes obtaining a prevailing wage determination, placing mandatory job advertisements, including two Sunday newspaper ads for most professional positions, posting an internal workplace notice, listing the job with the relevant State Workforce Agency, and, for professional occupations, conducting at least three additional recruitment steps such as online job postings, campus recruiting, job fairs or employer websites. Employers must also show that employing a foreign worker would not adversely affect the wages or working conditions of similarly employed US workers, and must review applicants in good faith and document why any US candidates were not qualified. The process has been largely unchanged since 2004, making modernization particularly urgent. Hiring practices have changed significantly since then, shifting from newspaper ads and traditional postings to online platforms, employer career portals, LinkedIn, job boards, internal talent systems and automated screening tools.
Indian nationals dominate the employment-based immigration pipeline, particularly in the technology, engineering, healthcare and research sectors, according to Business Standard. Many professionals working in the US on H-1B visas eventually rely on the PERM process to obtain permanent residence. Although the DOL has not yet released detailed draft rules, stricter recruitment standards or additional compliance obligations for employers could affect the time, documentation and administrative effort involved in sponsoring employment-based green cards. The planned PERM reforms do not change annual green card numbers, remove per-country limits or move Visa Bulletin dates forward, meaning they do not automatically solve long waits for Indian or Chinese applicants. The proposal does not directly change green card eligibility for applicants but focuses on the employer certification process that precedes most EB-2 and EB-3 green card petitions. If implemented, the proposed PERM reforms would represent the most significant changes to the employment-based green card certification process since 2004, affecting employers seeking to hire foreign professionals while introducing stricter requirements aimed at ensuring qualified American workers are given greater consideration during recruitment. Cases most exposed to any future change include many advanced degree or exceptional ability cases in EB-2, unless they qualify for a National Interest Waiver, and many professional, skilled worker and other worker cases in EB-3.
The proposed PERM overhaul comes as the Trump administration continues reshaping employment-based immigration policies, according to Bloomberg Law. The administration has already introduced changes to the annual H-1B visa lottery and has also proposed regulations that would significantly increase wage requirements for H-1B visa holders. The planned PERM reforms are intended to complement those measures and address concerns within the administration over the use of the H-1B specialty occupation visa programme. The PERM process has come under major scrutiny from the government as part of a crackdown on what it sees as abuses of the H-1B specialty occupation visa program, as reported by Bloomberg. The Department of Labor's regulatory agenda extends beyond immigration, with the agency also working on a final rule covering the classification of independent contractors, which is expected by October. Other proposals include a federal heat injury and illness prevention standard, with a supplemental proposal expected by December and a final rule targeted for October 2027. The rulemaking process requires public comments, review of feedback and then decision whether to issue a final rule, with a final rule potentially coming with an effective date and transition provisions for pending cases, new cases or matters already in recruitment.
