US Moves Closer to PERM Overhaul Amid Green Card Sponsorship Crackdown

US Moves Closer To Major PERM Overhaul

The US Department of Labor (DOL) has moved closer to overhauling the employment-based Green Card sponsorship process after its proposed changes to the Permanent Labor Certification (PERM) programme cleared White House review on October 23, 2026. The proposal comes amid increased scrutiny of employers sponsoring foreign workers, including major technology companies. However, the revised rules are not yet final, and existing requirements remain in place.

What Is the PERM Labor Certification Overhaul?

The proposed rule, titled Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program, aims to update a system whose regulations have not undergone a comprehensive overhaul since 2004.

PERM is an important step in many employer-sponsored Green Card applications, particularly under the EB-2 and EB-3 employment-based categories. Employers generally must demonstrate that qualified and available US workers cannot fill the position and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.

According to the DOL’s regulatory agenda, the proposed overhaul focuses on modernising recruitment requirements and strengthening employer compliance.

What Changes Could the New PERM Rules Introduce?

The proposal is expected to address several aspects of the labour certification process:

• Recruitment standards: Updating how employers advertise positions and assess qualified US applicants.
• Layoff safeguards: Strengthening protections for US workers affected by layoffs when employers seek to sponsor foreign nationals.
• Non-discrimination requirements: Improving compliance with rules governing recruitment and hiring practices.
• Record retention: Revisiting documentation and record-keeping obligations for employers.

The specific requirements will become clearer when the proposed regulation is published in the Federal Register. Employers and other stakeholders will then have an opportunity to submit public comments before the government considers finalising the rule.

Why Is the US Tightening Green Card Sponsorship Scrutiny?

The proposed overhaul comes amid a wider enforcement drive targeting alleged misuse of employment-based immigration programmes.

In a separate case, California-based data management company Cloudera agreed to a two-year PERM debarment following allegations that it deliberately excluded American applicants from technology positions reserved for temporary visa holders. Under the settlement, the company agreed to establish a $1.4 million back-pay fund and pay $600,000 in civil penalties.

The administration has also suspended PERM processing involving eight major technology employers: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. These company-specific actions are separate from the proposed nationwide regulatory overhaul.

Who Could Be Affected by the PERM Changes?

The proposed changes could affect employers sponsoring foreign professionals and workers pursuing employment-based permanent residency.

Indian professionals working in the US on H-1B visas may be particularly concerned because many rely on employer sponsorship through PERM as part of their Green Card journey. Tighter recruitment and documentation requirements could require employers to adjust their hiring and sponsorship procedures.

However, the proposal does not automatically change the immigration status of existing H-1B workers or mean that every Green Card application will face additional delays.

Will the PERM Overhaul Delay Green Cards?

The potential impact on Green Card processing time will depend on the final requirements, implementation timeline and how employers adapt to them. The proposal has cleared White House review, but it must still be published for public comment and considered for finalisation.

Until new rules take effect, employers and applicants should continue following existing PERM requirements. Workers should also distinguish between a proposed nationwide rule change and a specific suspension affecting their employer.

For foreign professionals planning US permanent residency, the next significant milestone is publication of the proposed rule and the details it contains.

Stay connected with Smart Immigrant for more updates on US immigration and policy changes.

Official source: US Government Regulatory Agenda — PERM Programme Overhaul]