The Department of Labor is preparing to update the PERM labor certification program. This would be the biggest change to the program in more than twenty years. No formal rule has been published yet. But the DOL’s regulatory agenda gives employers an early look at what may be coming.

This post breaks down what PERM is, what may change, what stays the same for now, and how employers can start preparing.

What Is the PERM Labor Certification Program?

PERM stands for Program Electronic Review Management. It is the first step in most employment-based green card cases under the EB-2 and EB-3 categories. Before a company can sponsor a foreign worker for a green card, it must test the U.S. labor market.

To satisfy the PERM labor market test, the employer must demonstrate that:

• No qualified U.S. worker who is able, willing, available, and qualified applied for the position. 
• Hiring the foreign worker will not negatively affect the wages or working conditions of similarly employed U.S. workers.

To prove that the above mentioned conditions have been met, employers are required to complete a prescribed recruitment process, including:

• Placing a job order with the State Workforce Agency (SWA). 
• Publishing two Sunday newspaper advertisements for the position. 
• Posting a notice of the job opportunity at the worksite for 10 business days. 
• Completing additional recruitment steps for professional positions.

After recruitment ends, employers must wait through a 30-day quiet period. They must continue to also review every applicant carefully , and keep detailed records.

These PERM recruitment and filing requirements were implemented in 2005 under regulations published in 2004 and have remained largely unchanged for more than two decades. Since then, hiring practices have evolved significantly, with employers increasingly relying on digital recruiting platforms rather than traditional print advertisements. This shift is a key reason the U.S. Department of Labor (DOL) is proposing to modernize the PERM labor certification program.

What Changes Is the DOL Proposing?

The DOL’s plan is listed in the Unified Agenda under RIN 1205-AC29. The title is “Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program.” While the agenda does not include the proposed regulatory text, it highlights several key areas the DOL intends to address.

1. Modernizing the Labor Market Test

The DOL wants PERM recruitment to look more like how employers actually hire today. Print newspaper ads may no longer be required, or may be reduced in importance. The agency may instead push employers toward online job boards and digital recruiting tools. The goal is to make the labor market test reflect real hiring practices, not outdated ones.

2. Updating Recruitment and Documentation Requirements

Employers should expect closer review of recruitment results. The DOL may set stricter standards for judging whether a U.S. applicant was truly qualified. Job requirements may also face more scrutiny, to make sure they are not written in a way that unfairly screens out U.S. workers.

Recordkeeping is also likely to expand. The DOL may ask for more detailed documentation of who applied, how they were evaluated, and why they were not hired. Audits may become more common, and they may focus on whether PERM recruitment matches a company’s normal hiring process, not just its formal PERM steps.

3. Strengthening Protections for U.S. Workers

A major theme in the agenda is protecting U.S. workers, particularly those affected by layoffs. The DOL may add stronger safeguards so that a company that recently laid off workers cannot easily bypass them through PERM recruitment. The agency also wants employers to show that their PERM recruitment is consistent, transparent, and non-discriminatory, and that it mirrors how they normally recruit for similar roles.

The DOL is also proposing significant increases to prevailing wage thresholds that affect PERM filings. Refer to our article on DOL’s Proposed Prevailing Wage Increases for more details. 

What Has Not Changed Yet

Current PERM Rules Remain in Effect

It is important for employers to remember that none of this is final. The current PERM rules, including newspaper ads, the 10-day posting, and the 30-day quiet period, are still in effect today. Employers must keep following the existing process until a new rule is published and takes effect.

Timeline for the Proposed Rule – What to Expect

The DOL has only listed this item on its regulatory agenda so far. A formal proposed rule has not been issued. Once a proposed rule is published, there will typically be a public comment period before any final rule takes effect. Employers should expect this process to take time, and should watch for updates from the DOL rather than assume changes are imminent.

Which Employers Will Be Most Affected?

Employers who rely heavily on PERM sponsorship for EB-2 and EB-3 green card cases should pay close attention. This includes companies that sponsor many foreign workers each year, as well as those in industries with frequent layoffs or restructuring. Companies with less consistent recruitment documentation, or those whose PERM recruitment differs significantly from their everyday hiring practices, may face more scrutiny under the anticipated changes. Employers who have recently conducted layoffs and are also pursuing PERM cases should be especially cautious, since worker protections tied to layoffs appear to be a central focus of the DOL’s plan.

Recommended Employer Actions Before the Rule Is Finalized

Audit Existing PERM Cases and Recruitment Files

Employers should review their current and recent PERM recruitment files now. Check that job postings, applicant tracking, and rejection reasons are complete and well documented. Confirm that recruitment steps were followed correctly and that records are easy to retrieve if audited. Cleaning up these files now will make the transition to new rules easier later.

Evaluate Pending and Upcoming Green Card Sponsorships

Companies should also review how layoffs or other workforce changes might affect current or future PERM cases. If a layoff has occurred or is planned, it is worth discussing timing and strategy with immigration counsel before starting a new PERM case. The underlying law behind PERM, found in the Immigration and Nationality Act, requires the Secretary of Labor to certify that hiring a foreign worker will not harm the wages and working conditions of similarly employed U.S. workers, and that no qualified U.S. worker is available. The DOL’s Employment and Training Administration is now working to modernize how that certification process works, aiming for a system that reflects current labor market realities while still giving genuine skill shortages a path forward.

Final Thoughts

The DOL has not published a formal proposed rule yet, so no PERM requirements have changed at this time. But the direction is clear: more modern recruitment standards, closer scrutiny of the labor market test, stronger protections for U.S. workers, and expanded documentation requirements. Employers should use this waiting period wisely. Reviewing recruitment practices now, tightening documentation, and staying in close contact with immigration counsel will help companies adapt quickly once a formal rule is proposed.

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Receipt of this communication does not establish an attorney-client relationship. Please consult with a qualified immigration attorney regarding your specific circumstances.