Washington, August 8: Republican Senator Eric Schmidt has urged the Labor Department to implement significant changes to the PERM process related to H-1B and green card pathways. This proposal could have a major impact on Indian tech professionals.
Senator Schmidt wrote to Acting Labor Secretary Keith Sonderling, requesting modernization of the Program Electronic Review Management (PERM) process. Employers typically use PERM as the first step in securing a green card for foreign employees seeking permanent jobs in the U.S.
In his letter, Schmidt stated, “The misuse of PERM and the H-1B program allows companies to hire cheaper foreign workers instead of American employees. The department must stop this abuse and restore the original intent of the regulations.”
While he did not mention India specifically, nor did he propose direct changes to H-1B or green card rules, he called for the Labor Department to rewrite regulations and publicly disclose data on audits, suspected fraud, and the previous use of OPT and H-1B visas by PERM applicants.
According to a report from the U.S. Citizenship and Immigration Services, 70% of all approved H-1B petitions in fiscal year 2025 were for Indian nationals. Many Indian students reach H-1B jobs through visas and Optional Practical Training, subsequently applying for employer-sponsored permanent residency.
Experts suggest that if recruitment documentation becomes stricter, the compliance burden on employers will increase, and scrutiny in the green card process will intensify. The already complex sponsorship process could become even longer. However, the ultimate impact will depend on how much the department adopts Schmidt’s proposals.
Schmidt noted that the PERM rules have not changed in over 20 years. For non-professional positions, employers typically need to advertise in two newspapers and register with the state employment agency. Online advertising is not required for professional roles.
He added, “Despite the decline in newspaper circulation and the prevalence of online applications, outdated rules allow employers to hide job openings from Americans, claiming they attempted domestic recruitment.”
The proposal also states that employers must keep records of every American applicant, explain the reasons for each rejection, and certify that the position was not predetermined for a foreign worker.
Additionally, they must notify recently unemployed qualified Americans, interview those with necessary qualifications, and provide written reasons for not selecting them.
Schmidt emphasized, “Current rules allow for mere compliance from American applicants. The department should replace this with a system that gives unemployed Americans a real opportunity for employment.”
PERM and H-1B are separate programs. The H-1B visa allows temporary employment in specialized professions, while PERM is generally used for permanent residency applications. Schmidt’s letter does not propose the immediate cancellation of any visa, application, or existing immigration status.
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