DOL Plans Major Update to PERM Labor Certification Process

The U.S. Department of Labor has announced plans to modernize the PERM labor certification process, marking the first major overhaul of the program in more than two decades. While the agency has not yet published proposed regulations, its latest regulatory agenda lays out broad changes intended to bring PERM in line with how employers recruit today.

The forthcoming rule, officially titled "Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program" (RIN 1205-AC29), aims to update a system that many employers say no longer reflects the realities of today's labor market. The current PERM framework still relies heavily on recruitment methods common two decades ago, including newspaper advertisements and state workforce agency postings, even though most employers now recruit through company career sites, online job boards, and professional networking platforms.

"Modernizing the PERM process is a much-needed change," said Xiao Wang, CEO of Boundless. "The current rules were written for a hiring process that no longer exists. Bringing them into the modern labor market is long overdue."

The proposal is still in its early stages, and the agency has not yet released detailed regulatory text. But its regulatory agenda offers details of the changes employers can expect.

Why PERM is changing

Most employment-based green cards require employers to first complete the PERM labor certification process. The purpose of PERM is to demonstrate that there are no able, willing, qualified, and available U.S. workers for the position and that hiring a foreign national will not adversely affect U.S. workers' wages and working conditions.

The core regulations governing that process have changed very little since they took effect more than 20 years ago.

Since then, recruiting has changed dramatically. Employers now primarily advertise jobs through company career pages, professional networking platforms such as LinkedIn, online job boards, industry-specific websites, and employee referral programs rather than newspaper classified ads.

What the proposal could change

Although the full regulatory text has not yet been released, the department's regulatory agenda outlines several areas of focus.

Potential changes include:

• Greater emphasis on online and digital recruitment methods
• Updated minimum recruitment standards that better match current hiring practices
• Stronger scrutiny of PERM applications from employers that have recently conducted layoffs or restructuring
• Enhanced requirements related to nondiscriminatory recruitment and hiring practices
• Expanded employer recordkeeping and compliance obligations

The DOL says the objective is to create a labor certification process that better reflects the current labor market while ensuring employers experiencing genuine labor shortages can continue to access employment-based immigration.

What it means for employers

If finalized, the reforms could reduce some of the disconnect between employers' normal recruiting practices and the separate recruitment campaign currently required for PERM filings.

At the same time, employers may face additional documentation requirements and increased scrutiny in certain cases, particularly if they have recently reduced headcount or reorganized parts of the business.

For now, employers should continue following the existing PERM rules, and any changes would not take effect until the Department of Labor completes the rulemaking process.

What happens next

The DOL said that it plans to publish a Notice of Proposed Rulemaking (NPRM), which will include the full regulatory language and open a public comment period before any changes take effect. The agency has listed publication of the proposal on its regulatory agenda, but no final timeline has been announced.

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