The U.S. Department of Labor (DOL) is preparing a major update to the PERM permanent labor certification process, a key step for many employment-based green card applicants. The planned rule could change how employers recruit U.S. workers, document hiring decisions, respond to layoffs, and demonstrate compliance when sponsoring foreign nationals for permanent residence.
For H-1B workers and other professionals pursuing employer-sponsored green cards, the development is important—but no new PERM requirements are currently in effect. The initiative remains at the proposed-rule stage on the federal regulatory agenda.
The Department of Labor has added a rulemaking initiative titled “Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program.”
According to the federal regulatory agenda, DOL intends to modernize PERM regulations that have not been comprehensively updated since 2004. The agency specifically identifies changes in technology and employer recruitment practices as reasons for revisiting the system.
DOL says the rulemaking will focus on three major areas:
The regulatory agenda listed July 2026 as the planned date for a Notice of Proposed Rulemaking. However, an agenda timetable is not the same as a final or effective regulation, and current PERM requirements continue to apply.
One major area to watch is recruitment.
Current PERM regulations can require employers sponsoring workers for professional occupations to place advertisements on two different Sundays in a newspaper of general circulation, along with a State Workforce Agency job order and additional recruitment activities.
That framework dates largely from the PERM system established more than two decades ago, while modern employers increasingly recruit through online platforms and other digital channels.
Forbes reports that immigration attorneys expect DOL could reconsider outdated recruitment methods, potentially giving greater attention to online recruiting and to whether an employer's PERM recruitment resembles its normal hiring practices. Attorneys also anticipate greater scrutiny of how employers evaluate and reject U.S. applicants.
Those specific changes have not been finalized, however. Until DOL releases and completes the rulemaking process, they remain predictions rather than requirements.
DOL's agenda specifically calls for stronger safeguards for U.S. workers affected by layoffs. That could be especially significant for technology companies and other employers that conduct layoffs while simultaneously sponsoring foreign professionals for permanent positions.
Forbes reports that immigration attorneys believe future rules could lead to expanded requirements for employers to show that potentially qualified U.S. workers affected by recent layoffs received appropriate consideration. More detailed recruitment records and additional audits are also possible.
Again, DOL has not yet established those specific requirements. The agency's agenda identifies its policy goals, while the detailed obligations will depend on the actual proposed and final regulatory text.
PERM is commonly used in the EB-2 and EB-3 employment-based green card process. DOL's role is to determine, among other things, whether qualified U.S. workers are available for the position and whether employing the foreign worker would adversely affect the wages and working conditions of similarly employed U.S. workers.
Many foreign professionals begin working in the United States under H-1B status before an employer sponsors them for permanent residence. A more demanding PERM process could therefore increase the documentation, recruitment, or compliance burden on sponsoring employers.
PERM is already a lengthy part of the green card process. As of August 7, 2026, DOL was processing analyst-review cases with September 2025 priority dates, and the average analyst-review processing time reported for July 2026 was 372 calendar days.
Any future rule that adds recruitment or review requirements could affect how employers plan green card sponsorship, although the actual impact cannot be determined until DOL publishes detailed regulations.
The planned PERM modernization does not directly change F-1 status, CPT, Day 1 CPT, or OPT employment authorization.
Its primary impact is on employers sponsoring foreign nationals for permanent employment through immigration categories that require labor certification.
However, international students who later transition from F-1 or OPT to H-1B status and eventually pursue an employer-sponsored green card should watch the rulemaking. Changes to PERM could become relevant later in their employment-based immigration path.
For now, students and workers do not need to change their plans based on speculation about the rule.
The most important point is that the DOL PERM rule is not yet a new requirement.
DOL has announced its intention to modernize the program, with recruitment standards, layoffs, nondiscriminatory hiring practices, and recordkeeping among the areas under review.
The details will matter. Once a proposed rule is formally published, employers, immigration attorneys, H-1B workers, and green card applicants will be able to see exactly what DOL wants to change and when those changes could potentially take effect.
Until then, existing PERM regulations remain the standard employers must follow.
Relevant Sources: