US plans changes to employment-based green card process: Key details

The proposed PERM reforms could change how employers sponsor workers for employment-based green cards

The United States is preparing to overhaul the Permanent Labor Certification (PERM) process, the mandatory first step for most employer-sponsored green cards, in a move that could reshape the immigration journey for thousands of skilled Indian professionals.

 

The US Department of Labor (DOL) plans to publish a Notice of Proposed Rulemaking (NPRM) in July to modernise the PERM programme, strengthen safeguards for American workers and update recruitment rules that have remained largely unchanged for more than two decades.

 

While no rules have changed yet, the proposal is significant because PERM is required for most employment-based green card applications under the EB-2 and EB-3 categories. Indians, who account for a large share of applicants in these categories, could be among those most affected once the reforms take shape.

   

What is PERM and why does it matter?

Before an employer can sponsor a foreign worker for a green card under most EB-2 and EB-3 cases, it must first obtain a labour certification through the PERM process.

 

The certification is designed to ensure that:

• There are no qualified and willing US workers available for the position.
• Hiring a foreign worker will not adversely affect the wages or working conditions of US workers.
• The employer has conducted recruitment in line with government requirements.

Only after receiving PERM approval can an employer proceed with the immigrant petition and, eventually, the employee's green card application, subject to visa availability.

 

What changes has the US proposed?

According to the DOL's regulatory agenda, the proposed rule, titled "Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program", seeks to update several aspects of the existing system.

 

The proposed reforms include:

• Modernising recruitment requirements by updating how employers test the US labour market before sponsoring foreign workers.
• Strengthening protections for US workers, particularly in situations involving layoffs.
• Improving compliance standards through stricter requirements for non-discriminatory recruitment, hiring practices and record-keeping.
• Aligning the programme with today's labour market, including technological changes and modern recruitment practices since the last major overhaul in 2004.

According to DOL, the objective is to create a more efficient labour certification process while ensuring employers sponsor foreign workers only when genuine skill shortages exist.

 

Why should Indian professionals pay attention?

Indian nationals dominate the employment-based immigration pipeline, particularly in the technology, engineering, healthcare and research sectors. Many professionals working in the US on H-1B visas eventually rely on the PERM process to obtain permanent residence.

 

Although the DOL has not yet released the detailed draft rules, stricter recruitment standards or additional compliance obligations for employers could affect the time, documentation and administrative effort involved in sponsoring employment-based green cards.

 

The proposal does not directly change green card eligibility for applicants. Instead, it focuses on the employer certification process that precedes the filing of most EB-2 and EB-3 green card petitions.

 

Immigration lawyers and employers are therefore expected to closely examine the draft once it is published to understand whether recruitment timelines, documentation standards or sponsorship procedures will change.

 

Is the rule already in force?

No. According to the DOL, the proposal is currently at the rulemaking stage. The department expects to publish the Notice of Proposed Rulemaking in July 2026.

 

After publication, the government will invite public comments from employers, industry groups, immigration experts and other stakeholders before deciding whether to issue a final rule.

 

This means the current PERM process remains unchanged until any final regulation is formally adopted.

 

What should applicants and employers do?

For now, there is no immediate action required from individuals with pending green card applications.

 

However, employers sponsoring foreign workers and professionals planning to begin the employment-based green card process may want to monitor announcements from the US DOL and the US immigration authorities. The detailed proposal, once released, will provide greater clarity on whether recruitment procedures, compliance requirements or labour market testing standards will become more stringent.

 

Given the long waiting periods that already affect many Indian applicants in the EB-2 and EB-3 categories, any procedural changes to PERM are likely to be closely watched by both employers and skilled workers seeking permanent residence in the United States.