PERM Modernization Rule Clears OMB Review: What Employers Need to Know

If your company sponsors foreign workers for green cards, a major regulatory development just landed on your radar. The PERM modernization rule has cleared a key federal checkpoint, and employers should start paying attention now.

On October 23, 2026, the Office of Management and Budget (OMB) finished its review of the Department of Labor’s (DOL) proposed rule, Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program. Here is what that means, what could change, and how to prepare.

What Is the PERM Labor Certification Process?

PERM (Program Electronic Review Management) is the first major step in many employment-based green card cases, especially in the EB-2 and EB-3 categories. Before an employer can sponsor a foreign national for permanent residence in these categories, DOL must certify two things:

1. No able, willing, qualified, and available U.S. workers exist for the position.
2. Hiring the foreign worker will not harm the wages and working conditions of similarly employed U.S. workers.

To prove this, employers run a structured recruitment campaign and document the results. The framework has gone without a comprehensive regulatory overhaul for roughly two decades, and hiring practices have changed dramatically since then. That gap is the main reason DOL is revisiting the program.

What Does OMB Review Completion Mean?

The rule went to OMB on September 14, 2026, and the official record shows review concluded on October 23, 2026. Before a major proposed rule appears publicly, OMB checks it for consistency with federal policy and its likely impact.

Clearing this review is meaningful progress, but it is not the finish line. Please keep these points in mind:

• The rule has not been finalized.
• No new PERM requirements are in effect today.
• The detailed regulatory text is still unpublished.

Until DOL releases the proposal, employers are working with the agency’s stated goals rather than actual rule language.

What Changes Is DOL Considering?

According to DOL’s regulatory agenda, the proposal targets four broad areas that touch nearly every PERM case.

1. Recruitment Requirements

DOL plans to revisit how employers must recruit U.S. workers. The goal is to reflect modern technology and today’s hiring methods. Depending on the details, this could change which recruitment steps are required and how employers document them.

2. Protections for Laid-Off U.S. Workers

DOL has signaled interest in strengthening safeguards for U.S. workers affected by layoffs. Companies that have recently reduced their workforce should watch this area closely, because it may affect how and when they can file PERM applications.

3. Nondiscrimination in Recruitment and Hiring

The agency also wants to reinforce rules that promote fair, nondiscriminatory hiring. Employers may face closer scrutiny of how job opportunities are advertised and how applicants are evaluated.

4. Record Retention and Compliance

Documentation obligations are also under review. Employers might see updated expectations for what records they keep and for how long.

Important: These are DOL’s stated objectives, not confirmed final changes. The actual proposal may look different once published.

What Happens Next in the Rulemaking Process?

The next major milestone is publication of a Notice of Proposed Rulemaking (NPRM) in the Federal Register. No publication date has been confirmed. After that, the process generally follows this path:

1. NPRM publication: The public sees the proposed regulatory text for the first time.
2. Public comment period: DOL typically allows 30 or 60 days for feedback from employers, attorneys, trade groups, and other stakeholders.
3. Agency review of comments: DOL considers feedback and decides whether to revise the proposal.
4. Final rule: If DOL moves forward, it publishes a final rule with an effective date and any transition provisions.

A proposed rule does not change current law. Employers must continue following existing PERM regulations until a final rule says otherwise.

How Could This Affect Your Business?

Even without final language, it is reasonable to think about where the impact could land:

• Recruitment planning: New standards could affect advertising, timelines, and costs.
• HR coordination: Recruitment, layoffs, and hiring decisions may need closer alignment with immigration strategy.
• Documentation systems: Stricter record retention could require better internal tracking.
• Filing timelines: Processing strategy may shift depending on the new requirements.

Companies with large foreign-national workforces or frequent green card sponsorship are likely to feel the effects most.

What Should Employers Do Right Now?

You do not need to overhaul your process today, but a few proactive steps make sense:

• Audit your current PERM practices. Review how your team handles recruitment, documentation, and file storage.
• Check your records. Make sure past recruitment files are complete, organized, and easy to retrieve.
• Align HR and legal teams. Immigration compliance works best when HR, hiring managers, and counsel communicate regularly.
• Review layoff history. If your company has had recent reductions in force, discuss the potential implications with your attorney.
• Plan for the comment period. Once the NPRM is published, consider whether your organization wants to submit feedback.
• Avoid assumptions. Wait for the actual text before changing internal policies.

Frequently Asked Questions

Final Thoughts

OMB’s completion of its review moves the PERM modernization rule one step closer to the public eye. The real picture will emerge only when DOL publishes the proposed text. Until then, employers should stay informed, keep following current PERM regulations, and make sure their recruitment and recordkeeping practices are strong.