The U.S. Department of Labor has moved closer to overhauling the PERM program, the process employers must use to sponsor foreign workers for employment-based green cards. A proposed rule cleared White House regulatory review on October 23 and now awaits publication in the Federal Register for public comment. The changes, if finalized, would alter recruitment standards, layoff requirements, and non-discrimination compliance for employers seeking labor certification.
Proposal Targets PERM Recruitment and Layoff Rules
The proposed regulation, listed under RIN 1205-AC29 and titled “Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program,” focuses on three main areas. First, it would revise the minimum standards employers must meet when advertising jobs and recruiting U.S. workers before sponsoring a foreign national. The specific changes to recruitment methods and documentation requirements remain unclear until the rule is published.
Second, the proposal seeks to strengthen requirements related to layoffs of U.S. workers. Depending on the final provisions, employers could face additional obligations when applying for labor certification after workforce reductions. Third, employers may need to meet stronger requirements to demonstrate compliance with federal non-discrimination rules during recruitment and hiring.
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The PERM program has not undergone a major regulatory update since 2005, making the proposed changes significant for employers and foreign workers moving through the employment-based immigration system. The certification is a key step in many green card applications, particularly under the EB-2 and EB-3 categories, which are commonly used by Indian professionals seeking permanent residency through employer sponsorship.
Uncertainty Remains Over Timeline and Impact
Despite the regulatory clearance, the full text of the proposal is not yet available. It is too early to determine whether the changes will increase costs, extend processing timelines, or create additional hurdles for specific categories of foreign workers. The next step is publication in the Federal Register, after which the Department of Labor is expected to invite public comments, potentially for 30 or 60 days.
Employers, immigration lawyers, industry groups, and other stakeholders will be able to submit feedback during the comment period. The department will then review the responses before deciding whether to issue a final rule. The proposed changes will not take effect merely because they have cleared federal review. Implementation will depend on the publication of a final regulation and its specified effective date.
