The US Department of Labor has advanced a proposal that could overhaul the process employers use to sponsor foreign workers for employment-based Green Cards, putting the permanent labor certification, or PERM, program under review as the Trump administration pushes changes to employment-based immigration.

The proposal was received by the White House Office of Information and Regulatory Affairs (OIRA) on September 14 and is currently undergoing regulatory review. It is titled “Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program.”
The PERM process is a key step for many US employers seeking to sponsor foreign workers for permanent residency. Under the existing system, employers generally have to establish that there are no qualified and available US workers for the position and that hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.
What the DOL wants to change
According to the government's regulatory agenda, the proposed rule would modernize the standards and procedures used by the Labor Department to receive and review PERM applications.
{{/usCountry}}According to the government's regulatory agenda, the proposed rule would modernize the standards and procedures used by the Labor Department to receive and review PERM applications.
{{/usCountry}}The agency says the rules have not been comprehensively updated since 2004, while technology and recruitment practices have changed significantly. The proposal would therefore seek to update minimum standards for recruiting US workers and strengthen protections for workers affected by layoffs.
The proposal would also address employer compliance with requirements involving non-discriminatory recruitment and hiring practices, as well as record retention, according to the regulatory description.
The DOL said the changes are intended to ensure that employers with genuine shortages of highly skilled workers can continue to access the permanent employment-based immigration system while strengthening safeguards for US workers.
Why it matters for H-1B workers seeking a Green Card
PERM is particularly significant for foreign professionals who are already working in the US and whose employers seek to sponsor them for permanent residency. Companies commonly file PERM applications for workers already employed through the H-1B program.
That means changes to recruitment requirements or the way applications are reviewed could affect employers navigating the employment-based Green-Card process for foreign workers, including H-1B employees.
The development comes as the Labor Department has increased scrutiny of the use of foreign-worker programs. The agency has announced multiple PERM suspensions involving technology and IT companies this year, including Cognizant Technology Solutions. The Department of Justice has also pursued enforcement actions involving alleged violations of PERM recruitment requirements.
Proposal is still under review
The PERM overhaul is not yet a final rule. The official regulatory database lists it at the proposed-rule stage, with OIRA review still pending as of September 16.
If the proposal moves forward, the Labor Department would have to publish a notice of proposed rulemaking, after which the public would generally have an opportunity to submit comments before the agency considers a final rule.