US green card alert: White House clears key stage for PERM overhaul, but details remain under wraps

The proposal is moving forward amid a broader enforcement crackdown on the PERM programme by the US administration, as part of actions taken by the Anti-Fraud Taskforce led by Vice President JD Vance.

The White House has completed its review of a proposal to overhaul the US permanent labour certification process (PERM), a key step in sponsoring foreign workers for employment-based green cards, PTI reported.

The proposed changes seek to revise the labour market test and other aspects of the PERM programme, whose rules were last modified in 2004. The US Department of Labour had submitted the proposal to the White House's Office of Management and Budget (OMB) for review in July.

The proposal is moving forward amid a broader enforcement crackdown on the PERM programme by the Trump administration, as part of actions taken by the Anti-Fraud Taskforce led by Vice President JD Vance.

Earlier this month, the US suspended PERM programmes 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 labour certification requirements before sponsoring eligible foreign employees for permanent residence. However, the specific provisions will become clear only when the proposed rule is published.

What changes are proposed to the PERM process?

According to the description of the proposed rule, the Department of Labour intends to revise the minimum standards for recruiting qualified US workers under the PERM labour market test.

The proposal also seeks to strengthen rules relating to layoffs of US workers and enhance employer compliance with non-discrimination requirements during recruitment and hiring.

Under the PERM process, employers sponsoring foreign workers for certain employment-based green cards generally must demonstrate that there are no sufficient, able, willing and qualified US workers available for the position and that employing the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.

The proposed changes aim to update the framework governing this process, which 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.

When could the new PERM rules take effect?

The completion of the White House review does not mean the proposed changes have already become law.

Once the proposal is published in the Federal Register, the Department of Labour is expected to invite public comments for either 30 or 60 days.

The department will consider the feedback before finalising the regulation. The new requirements will take effect only after the rule is finalised and its effective date is reached.

Until then, employers and foreign workers must continue to follow the existing PERM requirements.

PERM overhaul comes amid increased scrutiny

The proposed rule comes amid heightened scrutiny of the PERM programme 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 labour certification. After obtaining certification, an employer can generally 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 Labour.