World

White House Approves Review of PERM Overhaul, Details Pending

By Ravi Hari

The White House has finished reviewing a proposal to overhaul the U.S. permanent labor certification process (PERM), a key step in sponsoring foreign workers for employment‑based green cards, PTI reported. The changes aim to revise the labor market test and other aspects of the PERM program, whose rules were last updated in 2004. The Department of Labor submitted the proposal to the Office of Management and Budget in July. The move comes amid a broader enforcement crackdown on PERM by the Trump administration’s Anti‑Fraud Taskforce led by Vice President J.D. Vance. Earlier this month, the U.S. suspended PERM programs involving Microsoft, Adobe, TCS, Infosys, and four other technology employers, including Infosys Technologies and Tata Group.

The proposed overhaul could affect how employers recruit workers and demonstrate compliance with labor certification requirements before sponsoring eligible foreign employees for permanent residence. The Department of Labor intends to revise the minimum standards for recruiting qualified U.S. workers under the PERM labor market test, strengthen rules on layoffs of U.S. workers, and enhance employer compliance with non‑discrimination requirements during recruitment and hiring. Under the current PERM process, employers must show that no sufficient, able, willing, and qualified U.S. workers are available for the position and that employing a foreign worker will not adversely affect wages and working conditions of similarly employed U.S. workers.

The changes seek to update a framework that has remained largely unchanged since 2004. For employers, the revisions could mean changes to recruitment procedures and compliance requirements. The implications for foreign workers will depend on the final provisions and how they apply to different cases. The completion of the White House review does not mean the changes have become law. Once the proposal is published in the Federal Register, the Department of Labor will invite public comments for 30 or 60 days, consider the feedback, and then finalize the regulation. The new requirements will take effect only after the rule is finalized and its effective date is reached. Until then, employers and foreign workers must continue to follow the existing PERM requirements.

The proposed rule comes amid heightened scrutiny of the PERM program by the Trump administration. The reported suspensions involving Microsoft, Adobe, Infosys Technologies, Tata Group, and other technology employers have added to concerns over compliance with employment‑based immigration requirements. PERM is generally the first major stage in the employment‑based green card process for workers whose cases require labor certification. After obtaining certification, an employer can proceed with the relevant immigrant petition, subject to applicable requirements. For foreign professionals, including Indian technology workers seeking permanent residence through employer sponsorship, the proposed overhaul is a development to watch. The precise impact will depend on the text of the proposed regulation, the public comments received, and the final rules adopted by the Department of Labor.