US considers stricter green card sponsorship rules, focus on hiring American workers

The United States is moving towards a potential overhaul of its employment-based Green Card sponsorship system after a proposal to revise the Permanent Labour Certification (PERM) programme cleared federal review. The proposed changes could affect how employers recruit American workers before sponsoring foreign professionals for permanent residency, including thousands of Indian nationals working in the US.

The US Office of Management and Budget (OMB) has completed its review of the proposal submitted by the Department of Labour (DOL), clearing the way for its potential publication in the Federal Register. However, the detailed provisions have not yet been made public, and existing PERM rules remain in force.

The proposed overhaul is expected to update recruitment standards, strengthen protections for American workers affected by layoffs and reinforce compliance with federal non-discrimination requirements. The move could bring significant changes to a system that has not undergone a comprehensive overhaul in more than two decades.

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What Is PERM And Why Is It Important?

PERM, or Program Electronic Review Management, is a labour certification process that US employers generally must complete before sponsoring eligible foreign workers for employment-based Green Cards under categories such as EB-2 and EB-3.

Under the existing framework, employers must demonstrate that there are not enough qualified, willing and available American workers for the position. They must also establish that employing a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.

The process is particularly important for foreign professionals working in the US on temporary visas, including H-1B visa holders, whose employers intend to sponsor them for permanent residency.

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What changes are expected under the proposal?

The proposed changes are expected to focus on three key areas.

Revised recruitment requirements: The Department of Labour is expected to update the standards employers must follow when advertising vacancies and searching for qualified American candidates. The precise recruitment methods and documentation requirements will become clear once the proposed regulation is published.

Stronger safeguards for workers affected by layoffs: The overhaul could introduce additional considerations for employers sponsoring foreign professionals when American workers have recently been laid off, potentially increasing compliance obligations.

Stricter non-discrimination requirements: Employers could face greater scrutiny over recruitment and hiring practices to ensure compliance with federal rules. This may involve closer examination of how companies conduct labour market tests and document their efforts to recruit American workers.

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What happens next?

Following the completion of the federal review, the next expected step is publication of the proposal in the Federal Register, followed by a public comment period. Employers, immigration lawyers and other stakeholders will be able to submit feedback before the department considers finalising the regulation.

The proposal is not yet a final rule, and the revised requirements are not currently in effect. Implementation will depend on the regulatory process and the final provisions adopted.