US Green Card Sponsorship Overhaul Could Raise Hiring Bar for Employers

The process for employers sponsoring foreign workers for US green cards is set to be overhauled after more than two decades. The Department of Labor has said it wants to modernise the Permanent Labor Certification (PERM) programme.

The department argued that the 2004 framework no longer reflects how companies hire today.

PERM is the labour market test employers must pass before sponsoring a foreign national for an employment-based green card. It requires companies to establish that no qualified American worker is available for the job before onboarding a foreign candidate.

According to Bloomberg Law, the department wants to amend how PERM applications are reviewed so that the system reflects the shift in hiring practices over the past 20 years.The main focus is on employers' digital recruitment practices and their criteria for evaluating candidates.

The proposed alterations would place greater responsibility on employers. Companies will now have to make stronger and better-documented efforts to recruit qualified American workers before seeking foreign workers. The revisions are also designed to provide greater protection for US workers, with recent layoffs likely to be taken into account during the labour certification review.

Bloomberg Law said the broader aim is to strengthen oversight of employment-based immigration while aligning recruitment rules with current hiring realities.The PERM overhaul is part of a wider immigration push under the Trump administration.

The government has already revised the annual H-1B visa lottery and proposed much higher wage requirements for H-1B holders. The planned PERM changes are meant to complement those steps and address concerns over how the H-1B specialty occupation visa programme is being utilised.

The Department of Labor's regulatory agenda goes beyond immigration. A final rule on worker classification for independent contractors is expected by October.

Meanwhile, a federal heat injury and illness prevention standard is also in the pipeline, with a supplemental proposal due in December and a final rule expected by October 2027.

The department is also working on changes to mine safety rules covering respirable silica exposure, reviewing working hours for underage employees, and considering updates affecting tipped workers, employer tip credits, and overtime exemptions for certain domestic service workers under the Fair Labor Standards Act.

If implemented, the PERM changes would mark the most significant shift in the employment-based green card certification process since the current system was put into effect.

Employers that regularly sponsor foreign professionals would face stricter requirements, with the policy aimed at ensuring American workers are given stronger consideration before companies hire foreign workers.