US Green Card PERM Rule Changes: What to Expect in 2026

The United States is poised to enact one of its most important and overdue employment-based immigration changes in more than 20 years. The U.S. Department of Labor (DOL) has announced plans to update its Permanent Labor Certification (PERM) process, which is a requirement for most employer-sponsored Green Card applications. The proposed changes are designed to modernize the certification process to match today's hiring practices, enhance oversight, and keep American workers in mind when hiring. The final regulations are yet to be published, but the notification has already sparked a lot of interest among employers, foreign professionals, and immigration experts around the world. It is critical that anyone seeking an employment-based Green Card or any international talent in the coming years understand these proposed changes.

What Is the PERM Labour Certification Process?

For many foreign workers in the United States, obtaining an employment-based Green Card is one of the first and most important steps through the Program Electronic Review Management (PERM) system. PERM is administered by the U.S. Department of Labour (DOL) to make sure that the employment of a foreign worker is not detrimental to those of qualified U.S. workers.

Before an employer can file an immigrant petition with the U.S. Citizenship and Immigration Services (USCIS), they must first receive an approved PERM labour certification from the DOL. This certification is an assurance that:

• There were no qualified, willing, and available U.S. workers for the job.

• The hiring of the foreign national will not be in competition with similarly employed U.S. workers in terms of wages and working conditions.

• The employer has complied with all DOL-required recruitment requirements.

For the majority of employment-based Green Card categories (EB-2 and EB-3), PERM is a prerequisite for proceeding to the next steps in the Green Card process.

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Why Is the US Planning to Reform PERM?

The current PERM regulations were instituted in 2005. Since then, the American labour market has undergone a significant transformation. Many of the old PERM requirements are no longer relevant due to the following technological developments: remote work, virtual recruiting, online job posting, AI-assisted hiring, and shifts in the workforce.

The Department of Labour has acknowledged these changes in its latest regulatory agenda by adding PERM modernisation to the agenda. The goal is to develop a certification process that is more representative of current recruitment practices and still protects jobs for American workers, the department said.

Some of the primary reasons behind the proposed reforms include:

• Modernising recruitment methods to match today's digital hiring environment.

• Enhancing transparency in the labour certification process.

• Enhancing compliance and fraud control.

• Streamlining antiquated administrative processes.

• Solve labour shortage problems in multiple industries while protecting the rights of workers.

These reforms are not designed to do away with PERM, but to modernise the system to better meet the needs of employers, employees, and regulators.

Key Changes Proposed in the PERM Certification Process

While the full text of the regulations has not yet been released, officials have said that some key components of the labour certification process could be changed.

1. Modern Recruitment Requirements

New employer recruitment obligations are one of the largest expected changes.

The current PERM provisions continue to heavily rely on newspaper advertisements and recruitment practices that were established almost 20 years ago. The top sources of employment opportunities for today's employers are:

• Professional networking platforms

• Online job boards

• Company career websites

• Digital recruitment platforms

• Virtual hiring events

These recruitment sources could become legal evidence in the labour certification process if they are recognised in future regulations.

2. Updated Definition of Labour Market Testing

Labour market testing helps to make sure that employers first look for qualified U.S. workers before hiring foreign nationals permanently.

The Department of Labour will be expected to provide a new definition of how these recruitment efforts are demonstrated by the employer. Some potential updates can be made:

• New documentation requirements

• Revised recruitment timelines

• Digital recordkeeping standards

• More flexibility offered in industry-specific hiring practices.

Such changes could better reflect how employers recruit talent in today's economy.

3. Stronger Compliance Measures

The proposed reforms are also likely to bring in further compliance mechanisms.

Possible improvements include:

• Improved employer record-keeping.

• Increased auditing authority

• Improved verification of recruitment activities

• Improved oversight of wage determinations

The steps are designed to curb abuse of the labour certification system and safeguard legitimate employers.

4. Better Alignment with Current Employment Practices

The labour market has changed a lot since the first time PERM was introduced.

Today's workforce includes:

• Remote employees

• Hybrid work arrangements

• Global recruitment

• Technology-driven hiring

• Flexible workplace models

The Department of Labour is committed to balancing these realities with the needs of the program for adequate flexibility, and still fulfilling the program's intended purpose.

5. Regulatory Clarifications

Immigration lawyers have long complained that some of the existing PERM regulations are unnecessarily confusing.

The impending changes might be explained:

• Employer responsibilities

• Recruitment documentation standards

• Job requirement definitions

• Filing procedures

• Compliance expectations

This clarity would help to prevent errors, decrease application rejections, and ensure consistency in processing.

How Could These Changes Affect Employers?

Employers who sponsor foreign workers for permanent residency will have to make adjustments to their recruitment and documentation processes when the new regulations are finalised.

Potential impacts include:

• Implementing changes to internal recruitment processes.

• Keeping more comprehensive hiring records.

• Adopting proper digital recruitment techniques.

• Compliance training for HR and legal.

• Changing Green Card sponsorship periods.

If a company is frequently sponsoring international employees, it could be advisable to have a more up-to-date and streamlined process, as long as it meets the new requirements.

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Impact on Foreign Workers Seeking Green Cards

The proposed changes will not affect the employment-based Green Card category for skilled foreign professionals. Rather, they are designed to enhance the integrity and effectiveness of the certification process.

It is important to note that:

• Most EB-2 and EB-3 categories will probably continue to require PERM.

• Under the new rules, employers may require more documents.

• The recruitment techniques might shift towards contemporary recruiting implementation.

• Processes may be altered following the regulations' go into effect.

Foreign workers should stay closely involved with their employers and immigration lawyers during the sponsorship process.

Industries That Could Be Most Affected

Employment-based immigration is a critical pathway to filling gaps in several industries. Should the PERM regulations change, it could affect a range of industries, including:

• Information Technology (IT)

• Healthcare

• Engineering

• Manufacturing

• Financial Services

• Scientific Research

• Education

• Hospitality

These industries often have employer-sponsored Green Card programs to attract highly skilled international professionals. Employers in these sectors may need to update their recruitment strategies and compliance practices in response to the updated recruitment standards.

What Happens Next?

The Department of Labour has only stated that it will rework the PERM labour certification regulations at this point. The proposed regulation would be published for public comment and review before final regulations.

The process of rulemaking generally consists of the following stages:

• The Department of Labour proposes to publish the proposed rule.

• Public comment period where employers, immigration attorneys, industry groups, and others can provide feedback.

• Discussion of comments and changes to the proposal (if needed).

• The final rule is to be published.

• Implementation of the updated regulations after the effective date announced by the DOL.

This will give employers and foreign workers time to get to know the new requirements before they are implemented. Immigration professionals are advised to keep up to date with the official announcements from the Department of Labor and the U.S. Citizenship and Immigration Services (USCIS) regarding the timeline and implementation.

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What Should Employers and Applicants Do Now?

While the reforms are only in the proposal phase, employers and prospective Green Card applicants can take proactive steps in preparing for the reforms.

For Employers

• While waiting for new regulations to come into effect, continue to follow existing PERM regulations.

• Keep accurate recruitment records and documentation.

• Use a knowledgeable immigration lawyer to keep abreast of changes in the law.

• Analyse existing recruitment practices and determine if anything needs to be changed when digital recruitment standards are implemented.

For Foreign Workers

• Keep abreast of any changes made by the Department of Labour.

• Maintain dialogue with your sponsoring employer about your Green Card timeline.

• Make sure that all employment paperwork and qualifications are correct and easily accessible.

• Do not make assumptions about the new rules until the final rules are published.

• The earlier you get ready, the less delay you'll experience and the easier it will be to comply with the new regulations.

Conclusion

The proposed changes to the PERM labour certification process represent a key step to modernizing the U.S. employment-based immigration system. The Department of Labor's goal is to establish a more effective and clear regulatory process for employers while ensuring that opportunities for U.S. workers are not lost as a result of changes in the way employers recruit workers, with increased compliance efforts and clarity. While the changes are still being worked out and are not yet implemented, employers and foreign professionals should keep an eye on future announcements and be ready for changes to the Green Card sponsorship process. As the United States transitions to a more contemporary immigration system based on work, it will be crucial to stay informed and plan.

Contact TerraTern for more information.