DOL Signals Major Modernization of PERM Program Through New Proposed Rulemaking

The U.S. Department of Labor (DOL) has taken the first formal step toward a significant overhaul of the permanent labor certification (PERM) program. According to the Office of Information and Regulatory Affairs (OIRA) regulatory agenda, the DOL has listed a Notice of Proposed Rulemaking (NPRM) titled Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program. The NPRM is currently scheduled for July 2026.

While no proposed regulatory text has yet been published, this article discusses the agenda which provides valuable insight into the agency’s priorities and confirms that comprehensive PERM reform is actively underway.

What is the DOL Planning?

The regulatory agenda explains that the PERM regulations have not been comprehensively updated since 2004, despite substantial changes in the U.S. labor market over the past two decades.

According to the DOL, the proposed rule is intended to modernize several aspects of the PERM process, including:

• Updating recruitment standards to better reflect today’s labor market
• Improving the standards used by the DOL to review employers’ recruitment efforts
• Strengthening protections for U.S. workers who may be impacted by layoffs
• Enhancing employer compliance with anti-discrimination recruitment and hiring requirements
• Revising recordkeeping obligations

The DOL also states that the objective is to create a labor certification process that more accurately reflects current labor market conditions while continuing to provide employers experiencing legitimate shortages of highly skilled workers with access to the employment-based immigration system.

Why this Matters

The PERM program serves as the first step for most employer-sponsored permanent residence cases. Although the underlying regulations have remained largely unchanged for over 20 years, employers and practitioners have seen significant changes in recruiting practices, technology, and workforce dynamics.

A modernization effort could result in meaningful changes to:

• Recruitment methods and timing
• Documentation requirements
• Layoff analyses
• Audit standards
• Employer compliance obligations
• Overall PERM adjudication practices

At this stage, however, it is impossible to determine the scope of the eventual changes because the DOL has not yet released the actual regulatory language.

What Happens Next?

The regulatory agenda reflects only the DOL’s intention to publish a proposed rule. Once the NPRM is issued, it will be published in the Federal Register and will include the proposed regulatory text along with a public comment period. After reviewing public comments, the DOL may revise the proposal before issuing a final rule.

Accordingly, no changes to the PERM process have taken effect, and employers should continue following the current regulations until any final rule becomes effective.

Conclusion

The appearance of this NPRM on the federal regulatory agenda marks the most significant indication in years that the DOL intends to comprehensively revisit the PERM regulations. The Murthy Law Firm will closely monitor the publication of the proposed rule and provide detailed analysis of any changes that could affect employers and foreign national workers.

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