US moves closer to PERM overhaul amid crackdown on green card sponsorship

The Trump administration is moving closer to overhauling the employment-based green card sponsorship process, even as major technology companies face scrutiny over recruitment practices.The US department of labour’s (DOL) proposed rule to modernise the Permanent Labour Certification (PERM) programme cleared review by the White House Office of Information and Regulatory Affairs on Oct 23. Publication in the Federal Register will follow shortly, and public comments will be invited. DOL will then consider the feedback before finalisation of the rule, a process that could take months.The proposal, titled Modernising the Labour Market Test and Improving Protections for US Workers in the PERM Immigrant Visa Program, could significantly change how employers recruit US workers before sponsoring foreign nationals for permanent residence.H-1B visas generally allow foreign professionals to work in the US for up to six years. For those seeking a green card through their employer, PERM is often a critical first step. Employers must conduct prescribed recruitment to establish that no able, willing, qualified and available US workers can fill the position, and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed Americans. Once PERM is certified, the employer can generally proceed to the next stage by filing an immigrant application. The regulations have not undergone a comprehensive overhaul since 2004.According to DOL’s regulatory agenda, the proposed rule aims to modernise recruitment standards, strengthen safeguards for US workers affected by layoffs, improve compliance with non-discrimination requirements and revisit record-retention obligations.Immigration attorneys expect greater scrutiny of recruitment practices and documentation. An in-house counsel at a multinational company said the changes could significantly affect recruitment planning and layoff-related safeguards.“For instance, if layoffs have been for a now redundant process and hiring is for emerging AI technology, this would need to be documented and proved,” the counsel explained.The regulatory initiative comes amid an enforcement crackdown on employers sponsoring foreign workers. In a significant case, California-based data management company Cloudera agreed to a two-year PERM debarment following allegations that it deliberately excluded American applicants from technology jobs.According to the US department of justice, Cloudera created a separate recruitment process for seven positions earmarked for workers holding temporary visas. US applicants were allegedly directed to submit resumes to an email address that could not receive external messages. Under a settlement announced recently, Cloudera agreed to establish a $1.4 million back-pay fund for affected workers and pay $600,000 in civil penalties. It also faces monitoring and compliance obligations.Following an earlier suspension of Cloudera’s PERM processing, the wider crackdown reportedly extended to eight other major employers: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.Separately, DOL is pursuing revisions to prevailing wage rules affecting H-1B and PERM sponsorship, potentially increasing employers’ costs.You use AI every day. Now get your AI Quotient. Take the AIQ test.