US moves to change green card sponsorship rules as PERM proposal clears federal review

The United States is preparing to revise its employment-based green card sponsorship rules after a proposal to rebuild the Permanent Labor Certification (PERM) programme cleared federal review, according to an immigration advisory published by the US Office of Management and Budget.

The Office has completed its review of the proposed regulation developed by the US Department of Labor (DOL). The next step is publication in the Federal Register, followed by a public consultation period.

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The proposal could affect how employers recruit American workers before sponsoring foreign nationals for permanent residency. It also seeks to strengthen rules concerning layoffs of US workers and employers' compliance with non-discrimination requirements. The PERM programme has not undergone a comprehensive regulatory update since 2005.

What could change under the proposed PERM rules?

Under the existing PERM framework, employers must demonstrate that there are insufficient qualified, willing and available US workers for the position before sponsoring a foreign national for permanent employment.

Labour certification is an important requirement for many employment-based green card applications, particularly those under the EB-2 and EB-3 immigrant visa categories. Indian professionals seeking US permanent residency through employer sponsorship could therefore be affected by changes to the process.

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According to the DOL's description of the proposal, the changes would focus on three areas.

Recruitment standards: The department intends to revise the minimum requirements employers must meet when recruiting qualified US workers as part of the PERM labour market test.

Rules concerning layoffs: The proposal would strengthen PERM requirements related to situations in which American workers have been laid off.

Non-discrimination requirements: Employers could face enhanced obligations to comply with federal non-discrimination rules during recruitment and hiring.

However, the specific provisions remain confidential until the proposed regulation is published in the Federal Register.

When could the new PERM rules take effect?

Once the proposal is published, the Department of Labor is expected to invite public comments for either 30 or 60 days. Employers, immigration lawyers, businesses and other stakeholders will be able to submit feedback on the proposed changes.

The department will consider the submissions before deciding whether to finalise the regulation. The rules will not take effect until a final regulation is published with a specific implementation date.

The proposed changes were included in the department's regulatory agenda released in July 2026. The PERM programme has also been a focus of recent DOL investigations and enforcement initiatives.

US reviews employment-based immigration rules

The proposed PERM changes come amid wider reviews of US immigration requirements affecting foreign professionals and their employers.

In March 2026, Nairametrics reported that the DOL was considering higher prevailing wage requirements for foreign workers under the H-1B, H-1B1, E-3 and PERM programmes. Such changes could increase costs for businesses sponsoring foreign professionals.

In August, Nairametrics reported that the government was considering eliminating the 60-day grace period that allows certain foreign workers who lose their jobs to seek new employment, change immigration status or leave the country.

For Indian professionals pursuing employer-sponsored green cards, the impact of the proposed PERM changes will depend on the final provisions adopted by the Department of Labor.