PERM Is Being Rewritten: How to Plan Your Green Card Pipeline

PERM labor certification is the first step in most employer-sponsored green cards. The rules behind it have not been comprehensively revised since 2004. That is changing. Over the last seven months, the Department of Labor has proposed higher wage floors, moved a full rewrite of the labor market test into White House review, and stepped up enforcement against individual employers.

None of the proposed changes are final. But employers who plan around them now will have more options than those who wait. If you need a refresher on how PERM works, start with our EB-2 PERM guide. This piece covers what is moving and what to do about it.

Where PERM stands today

DOL is working through a large queue. As of September 22, 2026, analysts were reviewing PERM applications filed in December 2025 or earlier. Determinations issued in August took an average of 336 days. As of June 30, 2026, about 120,000 applications were pending, and software developers alone accounted for nearly a quarter of certifications this fiscal year.

In practice, a PERM filed today will likely be decided in the second half of 2027. Any rule finalized in the meantime could touch cases at different stages in different ways.

Change 1: a higher wage floor (proposed)

On March 27, 2026, DOL proposed raising the percentiles behind each of the four prevailing wage levels used in PERM and H-1B. Level I would move from the 17th to the 34th percentile, Level II from the 34th to the 52nd, and Level III from the 50th to the 70th. For entry-level roles, required wages could rise by more than 30%.

Two details matter for planning. First, previously issued prevailing wage determinations and certified PERMs would not be affected. Second, prevailing wage requests still pending on the effective date would be decided under the new levels. The comment period closed May 26. There is no final rule yet.

Change 2: a rewrite of the labor market test (in review)

In July, DOL added a proposed rule to its regulatory agenda titled "Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program." On September 14, it went to the White House Office of Information and Regulatory Affairs, typically the last stop before a proposal is published.

No text is public. DOL's stated goals point to changes in how employers recruit, how they document rejected applicants, how layoffs are analyzed, what records are kept, and how audits work. The agenda does not say how a new rule would treat cases already in progress.

Change 3: closer scrutiny of individual employers

In September, DOL suspended PERM and H-1B processing for two large employers as part of a fraud investigation. Separately, a September executive order directs agencies to weigh an employer's recent and planned layoffs in H-1B adjudications. Neither changes the PERM rules. Both signal that recruitment records and layoff history will be read more closely.

Change 4: a longer line after certification

A certified PERM leads to an I-140 and then a wait for a visa number. In the October 2026 Visa Bulletin, the EB-2 final action date for most countries moved back to January 1, 2025. For India it sits at November 1, 2013, and for China at October 1, 2021. The total timeline from first PERM step to green card is getting longer, which makes the start date more important.

What to do this quarter

Don't wait for the final rules. Every month of delay pushes a priority date back, and the queue after certification is lengthening.
Get prevailing wage requests in early. A determination issued before a wage rule takes effect would keep current levels.
Audit your recruitment files now. Assume any open case could be audited, and that rejection reasons and ad placements will be read closely.
Run a layoff check before each filing. Know which roles and locations saw reductions in the last six months, and document why a sponsored role is different.
Budget for higher wages. Model next year's compensation bands against the proposed percentiles so a final rule does not stall offers.
Watch the H-1B six-year clock. Extensions beyond six years require a PERM pending at least 365 days or an approved I-140. For employees in years four and five, the filing window is now.
Run a parallel route for your strongest profiles. EB-1 and EB-2 NIW do not require PERM, and an earlier priority date can carry over to a later PERM-based case.

Questions to put to your team

Which sponsored employees are within 24 months of the H-1B six-year limit?
Which pending prevailing wage requests would be repriced if a wage rule took effect next quarter?
Could we produce a complete recruitment file for every open PERM within 30 days?
Which employees qualify for a non-PERM route we have not considered?

At Casium, we help companies and teams manage these details in a few clicks. From flagging upcoming deadlines that could affect someone in your organization to building a more deliberate immigration program in light of these changes, see how we are transforming business immigration. Book a demo with our team and see how Casium can help you manage your team better.

This post is for general information and is not legal advice. The rules described here are proposed or under review and may change before they take effect. Talk to an immigration attorney about your specific situation.