Understanding Proposed PERM Rule Changes: What Employers and Workers Need to Know

Understanding Proposed PERM Rule Changes: What Employers and Workers Need to Know

The U.S. Department of Labor (DOL) is working on significant updates to the PERM labor certification process, a critical step for many foreign workers seeking green cards. As of September 16, 2026, no final rule has been issued, meaning employers must continue to follow the current PERM procedures. However, two key proposals are in motion, each with the potential to impact prevailing wage levels, recruitment requirements, and overall processing timelines. Understanding these proposed changes is essential for both employers sponsoring foreign workers and the workers themselves who rely on this pathway to permanent residency.

Wage Protection Rule: Raising Prevailing Wage Levels

One of the most impactful proposals is the Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States. This rule, published as a proposal on March 27, 2026, aims to increase the prevailing wage levels used for PERM and other foreign worker programs. If finalized, these changes would affect all four wage levels, significantly raising the minimum salary employers must offer.

Proposed Wage Level Adjustments

The proposed increases would shift the wage percentiles upwards. Level I wages would move from the 17th to the 34th percentile, while Level II would rise from the 34th to the 52nd percentile. Level III would see an increase from the 50th to the 70th percentile, and Level IV would move from the 67th to the 88th percentile. These adjustments are designed to ensure that foreign workers are paid wages that are more in line with the U.S. labor market.

Application to New Filings

A crucial aspect of this proposal is that it would apply prospectively. This means the new wage levels would only affect new PERM filings made on or after the rule’s effective date, should it be finalized. Existing PERM prevailing wage determinations, already approved PERM certifications, or certified labor condition applications (LCAs) would not be subject to these proposed increases. This provides some certainty for cases already in the pipeline.

PERM Modernization Proposal: Rebuilding the Labor Market Test

A separate proposal focuses on modernizing the PERM labor market test, which has not seen substantial changes since 2004. This initiative is part of the Department of Labor’s Spring 2026 Unified Agenda and aims to strengthen protections for U.S. workers and improve the overall integrity of the PERM process. While no regulatory text has been published to enact these changes yet, the stated goals are clear.

Key Objectives of Modernization

The modernization proposal seeks to achieve several objectives. These include encouraging more robust recruitment of U.S. workers, providing better protections for employees who have been laid off, ensuring stricter compliance with anti-discrimination laws, and expanding the recordkeeping requirements for employers. These changes could lead to a more demanding process for employers before they can obtain PERM certification.

Potential Impact on Recruitment and Recordkeeping

Under the modernization proposal, employers might face more rigorous recruitment efforts. This could involve expanding the channels through which they advertise job openings and engage with potential U.S. worker candidates. Additionally, recordkeeping obligations could become broader, requiring employers to maintain more detailed documentation of their recruitment and hiring processes. These changes are intended to ensure a fair and transparent labor market test.

Implications for Indian EB-2 and EB-3 Applicants

Professionals from India who rely on employer-sponsored green cards through the EB-2 and EB-3 categories may face the longest exposure to potential delays and added complexities due to these proposed PERM rule changes. Many of these applicants already contend with significant immigrant visa backlogs. The current PERM process itself is lengthy, with processing times averaging around 372 days as of August 2026, and the full cycle often taking 20 to 26 months when including prevailing wage and recruitment stages.

Increased Costs and Selectivity

The proposed higher wage requirements could make sponsoring foreign workers more expensive for employers. Coupled with potentially expanded recruitment efforts, this might lead employers to be more selective in their hiring decisions. This could particularly affect large Indian IT and consulting companies that frequently utilize the PERM process. Any delay in filing a PERM application can also postpone the establishment of a worker’s priority date, further extending the wait for those in already backlogged visa categories.

Navigating the Unfinished Process

For now, employers are advised to continue filing PERM cases under the existing rules. Both workers and companies nearing a filing deadline should closely monitor for the official Notice of Proposed Rulemaking and the final rule text before altering their strategies. The wage proposal, if finalized, would impact new filings with higher wage obligations, while the modernization proposal would alter recruitment, worker protections, and compliance requirements. Until a final rule is published by the Department of Labor, adherence to the current PERM process remains the standard.

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