The Department of Labor’s (DOL) proposed rule to modernize the PERM labor certification process has cleared an important regulatory milestone. On October 23, 2026, the Office of Management and Budget (OMB) completed its review of the proposed rule, titled Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program.

The next anticipated step is publication of the Notice of Proposed Rulemaking (NPRM) in the Federal Register. Once published, the proposed rule will provide the first opportunity to review the specific proposed regulatory changes DOL is considering and assess their potential implications for employers sponsoring foreign workers for permanent residence.

This update follows my earlier article on the anticipated PERM modernization rule, which discussed DOL’s plans to revisit a labor certification process that has not undergone a comprehensive regulatory overhaul since 2004. Read my earlier article on the anticipated PERM modernization rule.

OMB Review Completed: What Does This Mean?

The proposed rule was submitted for OMB review on September 14, 2026. The official regulatory record now lists the review as concluded, with a completion date of October 23, 2026.

Completion of OMB review is a significant procedural step toward publication. However, it does not mean that the proposed regulation has been finalized or that new PERM requirements are currently in effect. The regulatory text remains the key outstanding development. Although DOL has described the general objectives of the rule, the specific provisions will not be clear until the NPRM is published.

What Changes Is DOL Considering?

According to DOL’s regulatory agenda, the proposed rule is intended to modernize the standards and procedures governing PERM labor certification. The agency has identified several areas of focus:

• Recruitment requirements: Revisiting standards for recruiting qualified U.S. workers to reflect changes in technology and modern hiring practices.
• Layoff-related protections: Strengthening safeguards for U.S. workers affected by layoffs.
• Nondiscrimination in recruitment and hiring: Enhancing employer compliance with requirements intended to protect fair and nondiscriminatory hiring practices.
• Record retention and compliance: Revisiting employer obligations related to documentation and compliance with the PERM program.

These areas reflect DOL’s stated objectives, not a confirmed list of final regulatory changes. The published proposal will be necessary to determine which specific requirements DOL intends to revise, how those changes would operate, and whether additional compliance obligations would apply to employers.

What Happens Next?

Following completion of OMB review, the next major milestone is publication of the NPRM in the Federal Register. No publication date has been confirmed in the regulatory record.

Once the proposal is published, DOL is expected to provide a public comment period, likely 30 or 60 days as specified in the notice. Employers, immigration attorneys, business organizations, and other interested stakeholders will have an opportunity to submit comments on the proposed changes and their practical effects.

DOL will then consider the comments before determining whether to revise and finalize the rule. Any eventual final rule will specify its effective date and any applicable implementation provisions. Importantly, publication of a proposed rule does not itself change the existing PERM requirements. Employers should continue to follow the regulations currently in effect unless and until a final rule establishes new requirements.

What Should Employers Do Now?

Although employers do not need to change their PERM procedures solely because OMB has completed its review, this is a good time to monitor developments and evaluate existing recruitment and documentation practices. Employers should pay particular attention to the proposed language addressing recruitment methods, the treatment of U.S. workers affected by layoffs, nondiscrimination requirements, and record retention. Depending on the final provisions, changes in these areas could affect recruitment planning, internal coordination with human resources, documentation practices, and the timing of PERM filings.

Employers should also avoid making assumptions about the scope of the changes based solely on DOL’s regulatory agenda. The actual proposed regulatory text will be necessary to assess the impact on specific recruitment practices and pending or future labor certification matters.

Conclusion

Completion of OMB review on October 23, 2026 moves the proposed PERM modernization rule closer to public release. The next important step is publication in the Federal Register, which will allow employers and immigration practitioners to evaluate the proposed regulatory language and prepare meaningful comments.

We will continue monitoring the rulemaking process and will provide an update once the proposed rule is published and its specific provisions can be reviewed. For now, the existing PERM regulations remain in effect. Employers should continue to follow current requirements while preparing to evaluate the potential implications of DOL’s proposal once the text becomes available.

For more information or to discuss how the PERM Modernization Rule Clears OMB Review, please schedule a consultation here.

By: Krystal Alanis

Krystal Alanis is a Partner at Reddy Neumann Brown PC and serves as the Managing Attorney of the firm’s PERM Labor Certification Department, where she oversees all EB-2 and EB-3 employment-based green card matters. With over 14 years of experience, she advises employers and professionals on navigating complex business immigration processes with clarity and confidence. She has managed countless PERM applications across a wide range of industries, enabling her to anticipate challenges early and develop effective, efficient solutions.