One of the biggest overhauls of the PERM Labor Certification Process in almost two decades is being planned by the U.S. Department of Labor (DOL). As part of its Spring 2026 Unified Agenda of Federal Regulatory and Deregulatory Actions, the DOL revealed plans for modernizing the PERM program. The motive is to better represent the current labor market environment and streamline the program process.

Even though no rule has been put into effect yet, it is clear from the above announcement that a big change is anticipated for employers sponsoring foreign workers for green cards. The proposed modernization aims to address limitations in the current recruitment framework and better align the PERM process with today’s labor market.

Here is what the announcement means, the changes the DOL is considering, and what employers and foreign nationals should expect next.

What Is the PERM Labor Certification Process?

The Program Electronic Review Management (PERM) labor certification is the first step in most employer-sponsored employment-based green card applications. This process applies to applicants under the EB-2 and EB-3 categories.

Before filing an immigrant petition with U.S. Citizenship and Immigration Services (USCIS), most employers must first obtain a certified labor certification from the Department of Labor. The process is intended to demonstrate that:

• There are no able, willing, qualified, and available U.S. workers for the offered position.
• Hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.

To satisfy these requirements, employers must complete prevailing wage determinations, conduct mandatory recruitment efforts, and maintain detailed documentation supporting the application.

The PERM program framework has remained largely unchanged since 2004. During that time, the labor market has evolved significantly. The DOL now appears ready to revisit many aspects of the program.

What Did the Department of Labor Announce?

The Department of Labor included a proposed rule titled “Modernizing the Permanent Labor Certification Program” in its Spring 2026 regulatory agenda. According to the agency, the objective is to update the PERM program so it better reflects today’s recruitment practices, strengthens protections for U.S. workers, and improves the overall administration of the labor certification system.

Importantly, this is not a final rule.

It is at this point that the DOL has only expressed its intention to embark on the rulemaking process. For any changes to be enacted, the department should first publish a Notice of Proposed Rulemaking (NPRM). Afterward, it will have to consider comments from stakeholders and issue a final rule. Until this happens, the existing requirements under PERM shall stay in place.

Why Is the DOL Looking to Modernize the PERM Labor Certification Process?

The current PERM regulations were developed when newspaper advertisements and traditional recruitment methods were far more common. They are not as prevalent today.

Recruitment practices have evolved since then. More emphasis is placed on online recruitment, networking sites for professionals, career sites of companies, and many other recruitment techniques that are technology-based. Shortage of labor force, remote work, and new labor market dynamics have all altered recruitment practices for employers.

Modernizing the PERM Labor Certification Process may help the Department of Labor align its regulations with today’s hiring practices. At the same time, the agency can continue fulfilling its statutory responsibility to protect U.S. workers.

The proposed rulemaking also reflects the agency’s broader goal of improving efficiency, consistency, and transparency within the labor certification program.

Key Areas the DOL may Update

The Department of Labor has not yet released the full regulatory text. However, its regulatory agenda and agency statements indicate several areas that may receive attention during the rulemaking process.

1. Modernizing Recruitment Requirements

One of the most anticipated changes involves updating recruitment methods used during the PERM Labor Certification Process.

Current regulations prescribe specific recruitment steps that were designed years ago. The DOL is expected to evaluate whether those requirements still accurately reflect how employers recruit qualified workers today.

Future proposals may recognize recruitment practices that better reflect modern hiring technologies, although the specific changes will not be known until the proposed rule is released. Even so, U.S. workers would still need a meaningful opportunity to apply for available positions.

2. Improving Labor Market Testing

The labor certification process is intended to verify whether qualified U.S. workers are available for a position. Before an employer hires a foreign national permanently, this verification must be completed.

The DOL has signaled an interest in strengthening how labor market testing is conducted. This could include updates to recruitment procedures, documentation requirements, or evaluation standards that more accurately reflect today’s employment landscape.

The agency’s stated objective remains the same: protecting employment opportunities for U.S. workers. Additionally, allowing employers to fill genuine workforce needs when qualified domestic candidates are unavailable.

3. Enhancing Program Integrity and Compliance

Another likely focus is improving oversight of the PERM program.

The DOL may introduce measures to strengthen compliance. The proposals could also improve recordkeeping expectations and reduce opportunities for fraud or misuse. Greater transparency and clearer documentation standards could also help employers better understand their obligations throughout the certification process.

While the specific proposals have not yet been published, many immigration practitioners expect the agency to prioritize measures that improve consistency in adjudications and program administration.

4. Streamlining Administration

The Department of Labor has also indicated that modernization efforts are intended to improve the administration of the PERM program.

Although the regulatory agenda does not provide detailed implementation measures. While stakeholders hope updated procedures could reduce administrative burdens, the DOL has not indicated whether these changes will affect processing efficiency. They believe these changes could make the filing process more efficient. However, these improvements must still preserve protections for U.S. workers.

Whether future regulations will directly affect processing times remains uncertain. The DOL has not committed to faster adjudications or established a timeline for implementing any changes.

What Does This Mean for Employers?

For employers that regularly sponsor foreign workers for permanent residence, the announcement is an important development. Even though no immediate action is required, it remains significant.

Organizations planning future employment-based green card sponsorships should closely monitor the rulemaking process. Once a proposed rule is published, employers can evaluate whether their recruitment strategies, documentation practices, or internal compliance procedures require adjustment under the PERM Labor Certification Process.

Until new regulations become effective, employers should continue following the existing PERM program requirements. They should maintain complete documentation for every labor certification filing.

Employers should also remember that the current announcement does not change existing filing obligations. Until a final rule becomes effective, compliance with the current PERM regulations remains essential.

What Does This Mean for Foreign Workers?

Foreign nationals pursuing employment-based permanent residence should understand that the current announcement does not change existing eligibility requirements or filing procedures.

Individuals currently preparing or pursuing PERM-based green card applications should continue following the current regulations. They should do so unless and until the Department of Labor formally adopts new rules.

At the same time, prospective applicants may wish to stay informed about future developments. This is particularly important if they anticipate beginning the PERM process after any new regulations take effect.

These proposed reforms could eventually influence how employers complete labor certification. Meanwhile, foreign workers should avoid making immigration decisions based solely on anticipated regulatory changes. The existing legal framework continues to govern pending and future filings unless new regulations are formally implemented.

What Happens Next?

The Department of Labor’s announcement represents the beginning, not the conclusion, of the federal rulemaking process.

Before any modernization efforts become law, several steps remain:

• The DOL must publish a Notice of Proposed Rulemaking (NPRM).
• The public will have an opportunity to submit comments.
• The agency will review stakeholder feedback and may revise the proposal.
• A final rule must be published before any regulatory changes become effective.

The timeline for completing this process remains uncertain, and the contents of the final rule may differ from the initial proposal after public review.

Employers and foreign workers should continue monitoring official announcements from the Department of Labor. They should also consult qualified immigration counsel when evaluating future compliance obligations.

Final Thoughts

The Department of Labor has decided to pursue modernization of the PERM Labor Certification Process. This reflects the growing need to align immigration procedures with today’s labor market while preserving protections for U.S. workers.

These potential amendments may lead to a shift in the recruitment and documentation of PERM cases in the future. At this point, no amendments have been made to the existing regulations. All employers and foreign workers must continue following the current PERM rules. They must also be informed about any future announcements of the Department of Labor.

With more information forthcoming during the official rulemaking process, the future implications of these reforms on employment-based green cards can be better understood.