The US Department of Labor is preparing the first major overhaul of the Permanent Labor Certification (PERM) programme in more than 20 years, signalling tougher scrutiny for employers seeking to sponsor foreign workers for employment-based green cards.
The proposed changes are aimed at modernising the labour certification process, which has remained largely unchanged since 2004, and ensuring it better reflects today’s digital recruitment practices. If implemented, the reforms could introduce stricter documentation requirements and greater oversight for companies hiring foreign professionals.
Why is the US reviewing the PERM programme?
The Department of Labor says the current PERM framework no longer aligns with the modern job market.
When the system was introduced in 2004, employers primarily relied on newspaper advertisements and traditional recruitment methods. Today, hiring is largely conducted through online job portals, professional networking platforms and digital recruitment tools.
The proposed overhaul seeks to update the programme to reflect these changes while strengthening protections for American workers.
What is PERM?
PERM, or the Program Electronic Review Management system, is a mandatory labour certification process for many employment-based green card applications.
Before sponsoring a foreign worker for permanent residency, an employer must demonstrate that it has actively tried to recruit qualified US workers and that no suitable American candidate is available for the position.
Only after receiving PERM certification can an employer move forward with the next stages of the employment-based green card process.
What could change?
Under the proposed reforms, employers may face tighter requirements before receiving labour certification.
The Department of Labor is considering:
- Requiring stronger proof that employers genuinely attempted to recruit qualified US workers.
- Updating recruitment standards to reflect modern online hiring practices.
- Taking recent company layoffs into account when reviewing labour certification applications.
- Increasing oversight to prevent misuse of employment-based immigration programmes.
The goal is to ensure foreign workers are hired only when qualified American workers are unavailable.
What does it mean for Indian professionals?
The proposed changes are expected to be closely watched in India, as Indian nationals account for a large share of employment-based green card applicants in the United States.
Many Indian professionals first enter the US on H-1B visas before pursuing permanent residency through employer-sponsored green cards. Technology companies, engineering firms, healthcare organisations and research institutions have historically relied heavily on both the H-1B and PERM programmes.
If the new rules are adopted, employers sponsoring Indian workers could face additional paperwork, stricter recruitment requirements and more detailed compliance checks before obtaining labour certification.
Is anything changing immediately?
No. The Department of Labor has only proposed the review, and no immediate changes have been implemented.
Current green card holders and individuals with pending applications will not be affected unless new regulations are formally adopted after the rule-making process.
The PERM review comes as the Trump administration pursues broader immigration reforms, including increased scrutiny of H-1B visas, workplace compliance and employment-based immigration programmes, with a greater emphasis on prioritising American workers in the hiring process.