What is PERM?
The U.S. labor certification process, also known as Program Electronic Review Management (PERM), is designed to protect U.S. workers from being adversely affected by the hiring of foreign national employees.
Introduction
A new proposal by the Department of Labor (DOL) has the potential to eventually change protections for U.S. workers, recordkeeping, and recruitment practices. On July 9, 2026, the DOL added a newly proposed rule to its regulatory agenda called “Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program”.
Not long after, on September 14, 2026, the proposal process for the new regulation was sent to the White House Office of Information and Regulatory Affairs for review. The Department of Labor stated that it seeks to strengthen the minimum standards by improving efforts to recruit qualified U.S. workers, provide greater protection for U.S. workers affected by layoffs, and increase employer compliance with requirements governing non-discriminatory recruitment and hiring practices as well as record retention.
What Could Change
The DOL said this proposed regulation is needed to address outdated PERM regulations. The regulations were last updated in 2004, prior to the widespread use of digital recruiting platforms, work from home, and technology-driven hiring practices. However, the specific provisions of the proposal will remain unclear until the proposal is published. For employers, this is a significant development since PERM is the first step in the employment-based green card process. As a result, changes to recruitment and layoff standards could have downstream effects on job advertisements, interview notes, and filing timelines.
Where the Proposal is Now
The Office of Management and Budget (OMB) is currently reviewing the proposed regulation, and once it passes review, the proposed regulation will be published in the Federal Register to allow the public a 30- or 60-day comment period.
What HR Should Consider Doing Next
Since no rule is in effect yet, there are no immediate next steps required at this time.
There is no guaranteed date of when the proposed rule could be published; it can vary between weeks or months. The rule will be in effect when DOL has reviewed all public comments and has issued a final regulation including an implementation date. In the meantime, HR should consider:
- Conducting audits on layoff history for positions that could be affected by PERM filings.
- Keeping a paper trail of compliance with nondiscrimination throughout recruitment and hiring decisions.
- Watching the OMB dashboard for clearance and publication.
Even if there is no rule in effect yet, it is never too early to prepare. Work with our experts to understand the implications of the proposed regulation and prepare for any new requirements that may take effect.