DOL Plans First Overhaul of the PERM Employment-Based Green Card System
By Olivia Chen
For more than two decades, the Program Electronic Review Management (PERM) labor certification system has served as the primary step in many employment-based green card applications in the United States. Administered by the U.S. Department of Labor (DOL), the PERM process allows employers to sponsor foreign workers for permanent residence while protecting U.S. workers by ensuring foreign hiring does not adversely affect domestic wages or working conditions. PERM is generally required before employers may sponsor workers under many EB-2 and EB-3 employment-based immigrant visa categories. Although the system has remained largely unchanged since its introduction in 2004, the modern labor market has evolved significantly. Advances in technology, evolving recruitment practices, and increased global competition for skilled professionals prompted the DOL to propose the first comprehensive overhaul of the PERM system. The DOL formally published the proposed rule in late 2025, marking the first comprehensive revision of the PERM regulations since 2004, and, as of July 2026, the proposal remains under federal review.
For employment-based immigrants, PERM labor certification represents the first step toward obtaining permanent residence. The process functions as a labor market test requiring the employer to first request a prevailing wage determination from the DOL to establish the required wage, then conduct a series of mandatory recruitment activities to determine whether qualified U.S. workers are available. If no able, willing, or qualified U.S. applicants are found, the employer may file Form ETA-9089, the PERM labor certification application, with the DOL. Once certified, the employer may submit Form I-140 to the U.S. Citizenship and Immigration Services (USCIS). The foreign worker may then pursue adjustment of status or consular processing when an immigrant visa becomes available.
When introduced in 2004, PERM was considered a major modernization of the labor certification process. However, since then, many argue that it has not kept pace with today’s employment environment, as recruitment methods, technology, and competition has vastly changed; for example, Recruitment methods that once relied on newspapers and other traditional advertising have largely shifted to digital hiring platforms such as LinkedIn and Indeed, yet many PERM recruitment requirements remain rooted in the early 2000s. Additionally, employers have also expressed concerns about lengthy processing times, increasing documentation requirements, and prolonged delays that can extend permanent residence sponsorship approval for highly skilled and time-crucial employees over several years. As employers compete increasingly for international specialized talent in industries like healthcare, engineering, artificial intelligence, biotechnology, and advanced manufacturing, these concerns have only grown. Businesses argue that these extended processing timelines discourage highly qualified professionals from remaining in the United States, while simultaneously increasing uncertainty for employers attempting to fill critical workforce gaps. The DOL likewise acknowledges that the current framework no longer reflects modern hiring practices.
In response, the DOL has proposed the first substantial revision of the PERM labor certification process since their original implementation in 2004. The proposed rule seeks to modernize labor market testing requirements, update recruitment standards to reflect current hiring practices, strengthen protections for U.S. workers, and overall improve the efficiency of the certification process. Among the proposed changes are revised recruitment procedures, updated definitions, expanded documentation requirements, and modifications intended to better evaluate whether qualified U.S. workers are available for permanent positions before employers recruit internationally. According to the DOL, the proposal preserves PERM's original purpose while improving labor certification integrity, reducing opportunities for abuse, and better aligning recruitment requirements with current hiring practices. The DOL maintains that these changes would continue to protect employment opportunities for U.S. workers without eliminating legitimate pathways for employers to sponsor foreign workers when qualified domestic candidates are unavailable.
As of July 2026, nearly a year after the DOL released the proposed rule for public comment, the revisions remain in the federal rulemaking process and have not yet taken effect.The proposal was published for public comment, allowing employers, attorneys, labor organizations, industry groups, and the public to submit feedback before the DOL issues a Final Rule. Following its review of the submitted comments, the DOL may revise portions of the proposal before issuing a Final Rule. As of July 2026, no final rule has yet been published, meaning the existing PERM regulations remain in effect while the DOL continues evaluating the proposal.
If the proposed rule is finalized in its current or a substantially similar form, the proposed regulations could significantly alter compliance responsibilities for employers participating in the PERM system. Businesses may be required to adopt revised recruitment procedures, maintain more extensive documentation regarding hiring decisions, and ensure that internal hiring practices remain consistent with updated federal standards. These additional compliance measures may increase administrative costs and require employers to work closer with immigration counsel throughout the PERM sponsorship process. Foreign workers could also face longer processing times and greater uncertainty during the transition, affecting career decisions, international mobility, and long-term immigration planning. Additionally, greater regulatory complexity may also create additional uncertainty for individuals pursuing permanent residence through employer sponsorship, as immigration status may depend on the timing of the completion of the PERM process, if even approved. Immigration planning will be even more employment based, and these procedural changes can substantially affect international mobility and long-term immigration strategies, including career decisions.
The DOL’s proposal has also renewed a longstanding policy debate regarding the balance between protecting domestic workers and maintaining the U.S.’s competitiveness in attracting highly skilled global talent and general labor market capabilities. Supporters of the proposal argue that stronger labor market testing reinforces the purpose of employment-based immigration, ensures that qualified American workers receive priority consideration, and updating recruitment standards reflects evolving and current practices while preserving important labor protections. Critics argue that additional procedural requirements may increase regulatory burdens without meaningfully improving labor market outcomes. Business groups warn that added compliance costs could slow hiring and reduce U.S. competitiveness, while supporters maintain that stronger labor market testing better protects American workers. Others question the efficacy of expanding recruitment obligations to increase domestic hiring, when the employers being affected by these new regulations are only seeking workers with unique technical expertise that remains in limited supply.
Ultimately, the DOL’s proposed overhaul represents an enormous development in employment-based immigration policy in more than twenty years. Whether the final regulations successfully modernize the PERM process, streamline hiring, and maintain meaningful protections for U.S. workers or increase the regulatory burden on recruiters remains an open question that will largely depend on the final rule that will be adopted after public review. Employers, foreign professionals, and immigration practitioners should closely monitor the DOL's rulemaking process and prepare for potential changes to one of the most important components of the employment-based immigration system. With the proposal still pending as of July 2026, employers should monitor the DOL's issuance of a Final Rule, as any revisions will likely include future effective dates and transition periods before the new requirements become mandatory.
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