PERM Overhaul Clears White House Review: First Major Rewrite Since 2005 Heads to Public Comment
Updated: 3 hours ago
WASHINGTON, October 26, 2026 — A proposed rule that would reshape the Permanent Labor Certification programme has cleared its final regulatory hurdle before publication, setting the stage for the first comprehensive overhaul of PERM since 2005.
The Office of Management and Budget completed its review of the Department of Labor’s proposal, according to the federal regulatory dashboard. The rule now moves to the Federal Register, where it will be published for a public comment period expected to last 30 or 60 days.
The proposal has been anticipated since July, when it appeared on the 2026 regulatory agenda as a priority for the Department of Labor. Its contents remain confidential until publication, but DOL has signalled the broad direction of travel.
What DOL Has Said the Rule Would Do
According to the department’s own description, the proposal would touch on three core areas of the PERM process:
Revise minimum recruitment standards for the labour market test employers must conduct to demonstrate that no qualified U.S. worker is available.
Strengthen rules on U.S. worker layoffs, tightening the connection between PERM filings and recent workforce reductions.
Enhance employer non-discrimination obligations in recruitment and hiring practices.
Envoy Global adds that the proposal may also update record-retention requirements and modernise recruitment procedures to reflect current technology and labour-market practices.
The department has not disclosed the specific regulatory text, and the practical impact on employers will not be clear until the Federal Register notice is published.
Why This Matters Beyond the Text
The PERM programme is the gateway through which most employment-based green card applications pass. Before an employer can file an I-140 immigrant petition, it must obtain a labour certification confirming that hiring a foreign national will not harm U.S. workers.
The regulations governing that process have not been comprehensively updated in more than two decades. In that time, the labour market, recruitment technology, and the composition of the employer base have changed beyond recognition.
The proposed rule comes at a time of increased enforcement. In early October, the Department of Labor suspended eight major IT services companies — including TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft, and Adobe — from the PERM program, citing systemic abuse of prevailing-wage regulations and fraudulent recruitment practices.That action, covered in detail in VisasUpdate’s analysis of the PERM suspensions, signalled that the department is willing to use its suspension authority aggressively while broader rulemaking proceeds.
The proposed rule and the enforcement actions are two tracks of the same policy: tightening the standards employers must meet to sponsor foreign workers for permanent residence.
What Happens Next
Publication. The Federal Register notice will be the first opportunity to read the actual regulatory text. Until then, the three bullet points above are the only confirmed elements.
Comment period. DOL will accept public comments for 30 or 60 days after publication. Employers with significant PERM volume — healthcare systems, technology firms, engineering companies, universities — have a direct interest in submitting feedback, because the final rule will shape their sponsorship pipelines for years.
Finalisation. The rule will not take effect until DOL reviews the comments and publishes a final regulation with an implementation date. That process typically takes several months, and the final rule may differ from the proposal.
Litigation risk. Major immigration regulations are routinely challenged in court. The PERM rule is likely to face similar scrutiny, particularly if the recruitment standards or layoff provisions are seen as exceeding the department’s statutory authority.
What Employers Should Do Now
Monitor the Federal Register. The publication date is the trigger for everything else. Once the text is available, legal and HR teams should assess which provisions affect current and planned PERM filings.
Audit recruitment practices. If the rule tightens minimum recruitment standards, employers that rely on narrow or formulaic advertising may need to broaden their outreach. Starting that review now positions the organisation to adapt quickly.
Review layoff proximity. The strengthened layoff rules are likely to affect employers that have conducted or are planning workforce reductions. PERM filings made close to layoffs will face greater scrutiny.
Prepare for comment. Employers with substantial PERM volume should consider submitting comments through counsel or a trade association. The department is required to consider them, and they can shape the final text.
Track enforcement. The PERM suspension actions demonstrate that DOL is not waiting for the rule to be finalised before acting. Compliance with existing requirements remains essential.
Read Also
Quick Reference Summary
Item | Detail |
Action | OMB completed review of DOL proposed PERM rule |
Next Step | Publication in Federal Register |
Comment Period | 30 or 60 days after publication |
Core Areas | Recruitment standards; layoff rules; non-discrimination compliance |
Possible Additions | Record retention; recruitment modernisation |
Last Comprehensive Update | 2005 |
Enforcement Context | October 2026 suspension of eight IT companies from PERM |
Effective Date | Not until final rule is published |
Regulatory Dashboard |
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