The US Department of Labor is planning to update the process employers use to sponsor foreign workers for employment-based green cards, marking the first major review of the Permanent Labor Certification program, or PERM, in more than two decades.
The department has indicated that the current framework, introduced in 2004, no longer reflects how companies recruit and hire workers today. The proposed changes could bring stricter requirements for employers seeking to sponsor foreign nationals for permanent residency.
The PERM process requires employers to prove that they have made efforts to hire qualified US workers before sponsoring a foreign employee for a green card. The aim is to ensure that employment-based immigration does not displace available American workers.
Why is the US changing PERM rules?
The Department of Labor wants to modernize the PERM system to reflect changes in the labor market, particularly the shift towards digital recruitment.
When the current framework was introduced in 2004, employers relied more heavily on traditional recruitment methods. Today, companies increasingly use online job platforms and digital hiring tools to find candidates.
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The proposed update is expected to revise how PERM applications are reviewed and could require employers to provide stronger evidence of their recruitment efforts before seeking foreign workers.
What could change for green card sponsorship?
Under the revised framework, employers may face additional scrutiny when applying for labor certification.
Companies could be required to demonstrate more clearly that they have attempted to recruit qualified US workers before moving forward with foreign worker sponsorship.
The updated process may also consider recent layoffs during labor certification reviews, adding another factor for employers seeking to hire foreign professionals.
The broader goal of the proposed changes is to strengthen oversight of employment-based immigration while ensuring US workers receive meaningful consideration during hiring.
What is PERM and why does it matter?
PERM, or the Program Electronic Review Management system, is a mandatory labor certification step for many employment-based green card applications. Before sponsoring a foreign worker for permanent residency, an employer must complete the PERM process and show that there are no qualified US workers available for the role.
After PERM approval, employers can typically proceed with the next stages of the employment-based green card process.
The program is particularly important for industries that rely on skilled foreign workers, including technology, engineering, healthcare and research.
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What does the change mean for Indian workers?
The proposed overhaul is likely to be closely watched in India, as Indian professionals make up a significant share of employment-based immigration applicants in the US.
Many Indian technology professionals rely on employment-based visa pathways, including H-1B visas, before moving towards permanent residency through employer sponsorship.
Indian IT companies and US technology firms have historically been among the biggest users of employment-based immigration programs.
If implemented, the PERM changes could mean more documentation, stricter recruitment requirements and additional compliance steps for employers sponsoring foreign workers. However, the proposed reforms do not immediately change the status of existing green card holders or applicants.
The PERM overhaul comes amid broader changes to employment-based immigration under the Trump administration. The administration has already introduced changes to the H-1B visa system and proposed measures related to wages for foreign workers.
