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Green Card plans facing new hurdle? US moves to overhaul rules for sponsoring foreign workers

A new proposal aims to modernize the PERM process for foreign worker Green Card sponsorship, updating standards and enhancing protections for US workers.

Updated on: Sep 16, 2026, 07:06:47 IST
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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.

Another US immigration rule change? DOL advances PERM overhaul affecting Green-Card sponsorship. (Representational photo) (Pexel)
Another US immigration rule change? DOL advances PERM overhaul affecting Green-Card sponsorship. (Representational photo) (Pexel)

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.

Also read: US $100K OPT fee proposal clears White House review: How Indian students could be affected and what happens next

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.

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.

Also read: Laid off on H-1B? Trump plan could force workers to leave US immediately; how Indians could be affected

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.

  • Asmi
    ABOUT THE AUTHOR
    Asmi

    Asmi is a Senior Content Producer primarily covering stories related to NRIs, immigration, visas, citizenship and global mobility. She closely follows developments that affect Indians living, working and studying abroad, with a particular focus on translating complex policies and international developments into clear, accessible stories for readers. As part of the US Desk, Asmi also reports on a wide range of political, economic and social developments in the United States, exploring their relevance to Indian and global audiences. Her work spans breaking news, features, trends and explanatory stories, with an emphasis on accuracy, timely reporting and audience-focused storytelling. Asmi likes finding the human angle behind major developments and bringing context to stories that can often feel complicated or distant. She is especially interested in stories around immigration, life abroad, careers, education and the experiences of the Indian diaspora, while also exploring a wide range of topics that spark curiosity and conversation. Outside the newsroom, Asmi is an avid reader and loves travelling, discovering new places, experiencing different cultures and collecting stories along the way.Read More