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A rule that could reshape how US employers sponsor foreign workers for green cards has cleared its first major hurdle. The Office of Management and Budget finished reviewing the proposed regulation on October 23. That’s according to the regulatory record. That moves the PERM green card modernization effort closer to public view. The Department of Labor had submitted it for review on September 14.
The rule carries a formal title: “Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program.” It targets a process that hasn’t had a comprehensive overhaul since 2004. Employers who sponsor foreign workers for permanent residency through labor certification know why that gap matters. Two decades is a long time for any rulebook to go untouched.
What the PERM green card modernization rule is expected to change
The Department of Labor’s own regulatory agenda names four target areas. The department calls these stated objectives, not a confirmed list of final provisions. First: recruitment requirements. Officials want to update them to match how hiring actually happens now, replacing standards written before most companies recruited online. Second: layoff protections. The plan would strengthen safeguards for US workers affected by layoffs, addressing a long-standing complaint that PERM’s labor market test doesn’t protect domestic workers well enough during downsizing. Third and fourth: nondiscrimination requirements in recruitment and hiring, plus revised record-retention and compliance rules for sponsoring employers.
Why this matters for employers right now
Nothing changes for employers today. The rule has only cleared OMB’s review of the proposal. Nobody has finalized it. Nobody has published it yet. The next step is publication of a Notice of Proposed Rulemaking in the Federal Register. After that, the Department of Labor will likely open a public comment period. That window will probably run 30 or 60 days, depending on what the published notice specifies. An effective date only takes hold once that comment period closes and the department issues a final rule.
The gap between proposal and reality
Employers and immigration attorneys tracking the rule flag something important. Publishing a proposed rule doesn’t, by itself, change any existing PERM requirement. Companies running recruitment campaigns or filing labor certification applications right now should keep following the current rules. That holds true until a final version arrives with its own effective date. The caution makes sense given the history here: PERM went 22 years without a substantial update before this effort even began.
What a beneficiary-centric process could mean for applicants
The PERM rule and the H-1B program fall under separate regulations. Even so, immigration attorneys draw comparisons to broader reform efforts underway elsewhere in the system. Some of that discussion touches on shifting toward more applicant-centric processes generally. For PERM specifically, the near-term effect could cut the other way for employers. Strengthened layoff protections and modernized recruitment standards could make the labor certification stage slower, or more document-heavy. The long-run goal is still a fairer test of whether a US worker could have filled the role in the first place.
The next step in this rulemaking process
OMB’s review is done. The Department of Labor can publish the Notice of Proposed Rulemaking at any point now. The regulatory record gives no confirmed publication date yet. Once that notice appears, the comment period becomes the real moment of truth. That’s when employers, worker advocates and immigration attorneys finally see specific language, instead of the department’s stated goals.
For more on the current state of US immigration policy, see Tamara News’ coverage of the green card backlog and wait times and the ongoing court fight over H-1B visa fees.
FAQ: the PERM green card modernization rule
- What is PERM?
- The labor certification process US employers must complete before sponsoring most foreign workers for a green card based on employment. It confirms no qualified US worker is available for the role.
- When did this rule clear OMB review?
- October 23, 2026, according to the regulatory record, after the Department of Labor submitted it for review on September 14.
- Has the rule taken effect?
- No. It still needs publication as a Notice of Proposed Rulemaking, a public comment period, and a final version before any effective date gets set.
- What changes is the Department of Labor proposing?
- Its stated objectives cover recruitment standards, layoff-related worker protections, nondiscrimination requirements, and record-retention and compliance rules. The department hasn’t released final text yet.
- When was PERM last significantly updated?
- 2004, which makes this the first comprehensive overhaul of the program in more than two decades.
- Do employers need to change anything now?
- No. Current PERM requirements stay in effect until a final rule arrives with its own effective date.
Sources
- Reddy Neumann Brown PC (Krystal Alanis) — PERM Modernization Rule Clears OMB Review: What Employers Should Know. rnlawgroup.com
- Envoy Global — DOL Advances PERM Labor Certification Modernization Proposal. envoyglobal.com
Image credit: featured photo by the U.S. Department of Labor, Wikimedia Commons (CC BY 2.0). In-content photo (Marjory Collins, Library of Congress) is public domain.
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