US Green Card overhaul: Sponsorship rules to face biggest shake-up; Here's what changes for employers
The Department of Labour has signalled plans to modernise the Permanent Labour Certification programme, known as PERM, arguing that the framework introduced in 2004 no longer reflects how companies actually hire people today
- Jul 7, 2026,
- Updated Jul 7, 2026 11:14 AM IST
The process employers use to sponsor foreign workers for US green cards is about to face its most significant overhaul in over two decades. The Department of Labour has signalled plans to modernise the Permanent Labour Certification programme, known as PERM, arguing that the framework introduced in 2004 no longer reflects how companies actually hire people today.
What PERM is and what's changing
PERM is the labour market test employers must clear before they can sponsor a foreign national for an employment-based green card. The process requires demonstrating that no qualified American worker is available for the role before turning to a foreign candidate.
According to Bloomberg Law, the Department of Labor wants to revise how PERM applications are reviewed, updating the system to reflect two decades of change in hiring practices, particularly the widespread shift to digital recruitment that has fundamentally altered how employers search for and evaluate candidates.
A harder bar for hiring foreign workers
The central thrust of the proposed reforms is stricter accountability for employers. The revised framework would require companies to make stronger, more demonstrable efforts to recruit qualified American workers before seeking foreign talent.
The changes are also expected to introduce additional protections for US workers who have recently lost their jobs, with layoffs factored into the labour certification review. According to Bloomberg Law, the broader aim is to strengthen oversight of employment-based immigration while bringing recruitment rules in line with current hiring realities.
Part of a wider immigration push
The PERM overhaul doesn't stand alone. It sits within a broader reshaping of employment-based immigration under the Trump administration, which has already revised the annual H-1B visa lottery and proposed significantly higher wage requirements for H-1B holders. The planned PERM reforms are designed to complement those measures and address concerns within the administration over how the H-1B specialty occupation visa programme is being used.
Other labour rules in the pipeline
The Department of Labor's regulatory agenda extends beyond immigration. A final rule on the classification of independent contractors is expected by October, alongside a federal standard for heat injury and illness prevention, with a supplemental proposal due in December and a final rule targeted for October 2027. The department is also working on amendments to mine safety rules around respirable silica exposure, reviewing permissible working hours for employees aged 14 and 15, and considering changes affecting tipped workers, employer tip credits, and overtime exemptions for certain domestic service workers under the Fair Labor Standards Act.
Why it matters
If implemented, the PERM reforms would mark the most consequential change to the employment-based green card certification process since the current system came into force. Employers who regularly sponsor foreign professionals would face tighter requirements, while the broader intent is to ensure that American workers receive more meaningful consideration before companies look abroad.
The process employers use to sponsor foreign workers for US green cards is about to face its most significant overhaul in over two decades. The Department of Labour has signalled plans to modernise the Permanent Labour Certification programme, known as PERM, arguing that the framework introduced in 2004 no longer reflects how companies actually hire people today.
What PERM is and what's changing
PERM is the labour market test employers must clear before they can sponsor a foreign national for an employment-based green card. The process requires demonstrating that no qualified American worker is available for the role before turning to a foreign candidate.
According to Bloomberg Law, the Department of Labor wants to revise how PERM applications are reviewed, updating the system to reflect two decades of change in hiring practices, particularly the widespread shift to digital recruitment that has fundamentally altered how employers search for and evaluate candidates.
A harder bar for hiring foreign workers
The central thrust of the proposed reforms is stricter accountability for employers. The revised framework would require companies to make stronger, more demonstrable efforts to recruit qualified American workers before seeking foreign talent.
The changes are also expected to introduce additional protections for US workers who have recently lost their jobs, with layoffs factored into the labour certification review. According to Bloomberg Law, the broader aim is to strengthen oversight of employment-based immigration while bringing recruitment rules in line with current hiring realities.
Part of a wider immigration push
The PERM overhaul doesn't stand alone. It sits within a broader reshaping of employment-based immigration under the Trump administration, which has already revised the annual H-1B visa lottery and proposed significantly higher wage requirements for H-1B holders. The planned PERM reforms are designed to complement those measures and address concerns within the administration over how the H-1B specialty occupation visa programme is being used.
Other labour rules in the pipeline
The Department of Labor's regulatory agenda extends beyond immigration. A final rule on the classification of independent contractors is expected by October, alongside a federal standard for heat injury and illness prevention, with a supplemental proposal due in December and a final rule targeted for October 2027. The department is also working on amendments to mine safety rules around respirable silica exposure, reviewing permissible working hours for employees aged 14 and 15, and considering changes affecting tipped workers, employer tip credits, and overtime exemptions for certain domestic service workers under the Fair Labor Standards Act.
Why it matters
If implemented, the PERM reforms would mark the most consequential change to the employment-based green card certification process since the current system came into force. Employers who regularly sponsor foreign professionals would face tighter requirements, while the broader intent is to ensure that American workers receive more meaningful consideration before companies look abroad.