The US Department of Labour plans to overhaul the labour market test employers must complete before sponsoring foreign workers for employment-based green cards, according to Bloomberg Law. The proposed changes are part of the Trump administration's broader regulatory agenda and are intended to modernise the Permanent Labour Certification (PERM) process, which has not been updated since 2004.
According to Bloomberg Law, the department said advances in technology have changed recruitment practices across industries, making an update to the PERM system necessary. The proposal will revise how the agency reviews employers' PERM applications, with a focus on ensuring businesses make stronger efforts to recruit qualified US workers and introducing safeguards for American workers affected by layoffs.
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Changes target green card sponsorship process
The planned changes come as the Trump administration continues tightening oversight of employment-based immigration. According to Bloomberg Law, the administration has already revamped the annual H-1B visa lottery system and issued draft regulations that would significantly increase wage requirements for H-1B workers.
The proposed PERM reforms are aimed at addressing concerns over what the administration views as misuse of the H-1B specialty occupation visa programme while aligning labour certification rules with current hiring practices.
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Beyond immigration, according to Bloomberg Law, the Labour Department's regulatory agenda includes several workplace-related proposals. These include a final rule on independent contractor classification expected by October, a supplemental proposal on a federal heat injury and illness prevention standard by December with a final rule targeted for October 2027, and amendments to mine safety regulations on respirable silica.
The agenda also includes proposals on permissible work hours for 14- and 15-year-old workers, changes to Fair Labour Standards Act provisions covering tipped employees and employer tip credits, and a final rule on wage and overtime exemptions for certain domestic service workers providing companionship services.
