US Moves to Revise Green Card Sponsorship Rules for Foreign Workers

The United States government is preparing to revise its employment-based green card sponsorship rules, a move that could change how American employers recruit and sponsor foreign workers seeking permanent residency. The proposed changes to the Permanent Labor Certification (PERM) programme have completed review by the Office of Management and Budget, clearing the way for the US Department of Labor to publish the proposed regulation in the Federal Register. According to an immigration advisory published by Fragomen on October 26, 2026, the proposed reforms would update recruitment requirements, strengthen protections for American workers affected by layoffs and increase employers’ obligations to comply with federal non-discrimination rules. The PERM programme is a key step in many employment-based green card applications, particularly those under the EB-2 and EB-3 categories. Under the existing framework, employers generally must demonstrate that there are insufficient qualified, willing and available American workers for a position before sponsoring an eligible foreign national for permanent employment. The process requires employers to undertake prescribed recruitment activities and document their efforts to find suitable American workers. The proposed changes could revise the minimum standards employers must meet when testing the domestic labour market. They could also introduce additional requirements for employers seeking to sponsor foreign workers where American employees have recently been laid off. Another area under consideration is compliance with federal rules prohibiting discrimination in recruitment and hiring. However, the specific provisions of the proposed regulation have not yet been made public. The full implications for employers and foreign professionals will therefore become clearer once the Department of Labor publishes the proposal. Public Consultation Expected Following publication in the Federal Register, the proposal is expected to undergo a public consultation period. Employers, immigration lawyers, businesses and other interested parties will have an opportunity to examine the proposed requirements and submit comments. The consultation period could last 30 or 60 days, depending on the final notice. The Department of Labor will review the submissions before deciding whether to issue a final regulation. The changes will not take effect simply because the proposal has cleared federal review. The formal rulemaking process must be completed before any final requirements become effective. What It Could Mean for Foreign Workers If adopted, the revised rules could affect how employers recruit foreign professionals, document hiring efforts and demonstrate compliance before sponsoring workers for permanent residency. Applicants pursuing employment-based green cards through the EB-2 and EB-3 categories may be affected if the new requirements alter recruitment procedures or the treatment of workplaces that have recently experienced layoffs. Employers may also need to review their internal recruitment and record-keeping practices to ensure they meet any new obligations. The development does not, however, establish that the United States is changing its family-based green card sponsorship rules. Those applications follow a separate immigration process. For now, foreign professionals and employers should await publication of the proposed regulation before drawing conclusions about eligibility, application requirements or implementation dates. The proposed review represents a potential update to a PERM framework whose regulations have not undergone a comprehensive revision since 2005.