Major PERM Reform Is Underway: Recruitment Rules Could See Their Biggest Update in Decades

The PERM labor certification process could be headed for its biggest overhaul in more than 20 years.

The U.S. Department of Labor (DOL) is working on a proposed rule to modernize the PERM labor market test and recruitment process. The current PERM regulations have not been comprehensively updated since 2004. Since then, recruiting has changed dramatically, with LinkedIn, Indeed, company career pages, and other online platforms becoming standard tools for employers and job seekers.

Now, DOL is taking a fresh look at a basic question: How should PERM recruitment reflect the way today’s U.S. labor market actually works?

Why Does PERM Require a Labor Market Test?

For many EB-2 and EB-3 employment-based green card cases, PERM labor certification is a key part of the process.

In simple terms, before a U.S. employer can sponsor a foreign national for permanent employment, it generally must conduct recruitment under DOL rules to test the U.S. labor market.

The process is designed to answer two basic questions:

• Are there qualified U.S. workers who are available and willing to take the position?

• Would hiring the foreign worker negatively affect the wages or working conditions of similarly employed U.S. workers?

If the applicable requirements are met, the employer can move forward with the PERM labor certification process. Because recruitment is at the heart of the PERM labor market test, how DOL plans to update those recruitment standards is one of the most important issues to watch.

What Could Change Under the New PERM Rule?

The full text of the proposed rule has not yet been released, so we do not yet know exactly how the recruitment process or specific requirements may change.

However, DOL has identified several areas it intends to address:

1. Modernizing recruitment standards for U.S. workers

DOL plans to update the minimum standards employers must follow when recruiting qualified U.S. workers. The goal is to make the PERM process better reflect today’s labor market and recruiting practices.

For employers, an important question will be which recruiting channels may be recognized and what evidence will be needed to show that recruitment was conducted properly.

2. Strengthening protections for U.S. workers affected by layoffs

DOL has also said it intends to strengthen safeguards for U.S. workers affected by layoffs.

This could be particularly important for employers that have recently conducted layoffs while also sponsoring foreign workers through the PERM process.

3. Increasing focus on nondiscriminatory recruitment and hiring

The proposed rule is also expected to strengthen compliance requirements related to nondiscriminatory recruitment and hiring practices.

PERM recruitment is intended to be a genuine test of the U.S. labor market—not simply a box-checking exercise. How a position is advertised, how applicants are reviewed, and why U.S. applicants are rejected may therefore become even more important.

4. Strengthening recordkeeping requirements

DOL has specifically identified employer record retention as another area for reform. For employers, the question may increasingly be not only whether recruitment was completed, but also whether the company has the records to show that it was completed properly.

Will PERM Newspaper Advertising Go Away?

This is one of the biggest questions for employers and foreign national employees.

Current PERM rules require specific recruitment steps for professional positions, including newspaper advertising. With DOL now looking to modernize the recruitment process, many are asking whether those traditional requirements could change.

For now, there is no answer.

DOL has not yet released the full proposed rule. That means we do not yet know whether newspaper advertising will be eliminated or whether platforms such as LinkedIn, Indeed, or company career websites could take on a different role under the new framework.

Until DOL releases the proposed rule and any changes ultimately take effect, employers should continue following the current PERM recruitment requirements.

Have the New PERM Rules Taken Effect?

The answer is: No.

The initiative is still at the proposed rule stage. The rulemaking is listed as RIN 1205-AC29 and is being developed by DOL’s Employment and Training Administration (ETA). It is currently undergoing regulatory review by the White House Office of Management and Budget (OMB). That means the changes being discussed are not new PERM rules currently in effect.

After the regulatory review process, DOL would still need to publish the proposed rule. That publication will provide the actual regulatory language and allow the public to see exactly what DOL is proposing.

For now, employers should continue handling PERM cases under the existing rules rather than changing recruitment practices based on anticipated reforms.

What Does This Mean for Employers and Current PERM Cases?

In the short term, employers do not need to change course simply because this rulemaking is underway.

But companies that regularly sponsor employees for permanent residence—or are preparing to start new PERM cases—should watch several areas closely:

• Whether PERM recruitment channels and minimum recruitment standards change;

• Whether additional requirements apply when an employer has recently conducted layoffs;

• How DOL approaches the review and rejection of U.S. applicants;

• What recruitment and applicant records employers will need to retain; and

• How any new rules will apply to PERM cases that are already underway when the changes take effect.

For employers, the bigger issue may ultimately be about more than where a PERM job advertisement is posted.

If DOL modernizes recruitment while also strengthening protections for U.S. workers, nondiscrimination requirements, and recordkeeping obligations, the process may better reflect how companies recruit today—but employers may also need to do more to document that their recruitment was genuine and compliant.

What Should Employers Do Now?

PERM regulations have not been comprehensively updated since 2004. If this reform moves forward, it could significantly reshape how employers test the U.S. labor market as part of the permanent residence process.

But the most important point right now is simple: the rules have not changed yet.

Employers with PERM cases in progress should continue following the current requirements. Companies preparing to begin new employment-based green card cases may also want to review their recruitment, layoff, applicant-screening, and recordkeeping practices so they are better positioned for potential changes ahead.

ILS will continue monitoring the proposed rule and the OMB review process. Once DOL releases the actual proposal, we will provide further analysis of the recruitment requirements, timing, and potential impact on pending and future PERM cases.

If your company is planning PERM, EB-2, or EB-3 sponsorship, or has questions about how recruiting, layoffs, and workforce decisions may affect the immigration process, please contact the ILS Immigration Team at immgrationlaw@consultils.com.

Disclaimer: Given the rapid changes in immigration policies, it is advisable for enterprises to pay close attention to official updates and consult professional immigration lawyers for the latest guidance. Our firm will continue to track policy developments and provide clients with timely and accurate professional services.

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As Partner and Head of Immigration at ILS, Anna advises global employers on all aspects of U.S. business immigration. She helps companies recruit and retain executives and highly skilled professionals essential to their U.S. operations, with experience spanning industries from autonomous driving and biotech, to entertainment, logistics, and manufacturing.

Previously, Anna practiced at leading global law firms and served as in-house counsel and compliance manager in the telecommunications, finance, and gaming industries. This diverse background equips her with practical, cross-industry insights that inform strategic, business-focused immigration solutions.

Email: contact@consultils.com | Phone: 626-344-8949