Breaking: PERM Reform 2026 — DOL Proposes Major EB-3 Recruitment & Compliance Changes

The Department of Labor's proposed overhaul of the PERM labor certification program has cleared review by the Office of Management and Budget (OMB), bringing it one step closer to formal publication. The rulemaking, identified as RIN 1205-AC29, aims to modernize a framework that has not been comprehensively revised since 2004, addressing significant changes in technology and recruitment practices over the past two decades. DOL's stated objectives include updating recruitment standards, strengthening protections for U.S. workers affected by layoffs, and enhancing compliance with nondiscrimination and record-retention requirements. However, the specific regulatory text has not yet been released, meaning employers cannot assess the full scope of required changes until the proposed rule is officially published. For EB-3 sponsors, the eventual rule could significantly affect how recruitment is conducted and documented, how job applicants are evaluated, and how workforce reductions interact with active sponsorship cases. Of particular concern is the existing six-month layoff rule: employers who conducted qualifying layoffs before a PERM filing must already document notification and consideration of laid-off U.S. workers. Any new requirements in this area could increase the compliance burden. A public comment period of 30 or 60 days is expected following publication. Employers are advised to prepare concrete examples of implementation costs and recruitment challenges for potential submission during this window. Importantly, employers should not assume that cases filed before a future effective date will automatically be exempt from new requirements — any grandfathering provisions will need to be evaluated once the regulatory text is available. In the interim, existing PERM obligations remain fully in effect. Employers should continue following current requirements under 20 C.F.R. § 656.10 and § 656.17(k), coordinate between immigration counsel, HR, and recruiting teams, and begin auditing their recruitment documentation and applicant rejection records in preparation for a potentially significant regulatory shift.