Permanent labor certification, commonly known as PERM, is a U.S. Department of Labor (DOL) program that allows employers to hire foreign nationals for permanent positions in the U.S. It is a prerequisite for certain employment-based green card applications, specifically EB-2 and EB-3 categories.
The purpose of PERM labor certification is to verify that no qualified U.S. workers are available for a particular role and that hiring a foreign worker will not negatively impact U.S. employees’ wages and working conditions.
Key features of the program include:
- Electronic submission. Employers may file applications electronically for faster processing. However, despite e-filing speeding up the process, processing times are lengthy (from five months to over a year).
- Recruitment compliance. Employers must follow strict guidelines set by the DOL when recruiting for a role. Failure to follow recruitment guidelines to the letter may result in delay or denial of the certification application.
- Labor market protections. The DOL grants certification when they determine that hiring foreign employees does not adversely impact the U.S. labor force. If it is discovered that a U.S. citizen meets the qualifications and can competently do the job, then a foreign national cannot be hired.
Some industries apply for PERM labor certification more than others. Technology, healthcare, and higher education industries frequently use PERM labor certification to hire international talent. The following jobs are in high demand and prompt PERM applications regularly: in tech, software developers and engineers; in healthcare, nurses and medical specialists; and in higher education, professors and researchers. In particular, healthcare faces significant workforce challenges, with physician shortages expected to worsen by 2036, especially in specialties like vascular surgery, internal medicine, and family medicine, according to a 2024 report by the U.S. Department of Health and Human Services. The construction and skilled trades industries also seek non-U.S. employees to fill positions.
What are the steps in the PERM labor certification process?
The PERM labor certification process consists of four consecutive steps that potential employers must take while considering the investment in time and resources. The program was designed to protect the U.S. labor market by ensuring that employment-based immigration does not disadvantage domestic workers. Partnering with a third party with expertise in the nuances of the certification process can make it easier.
Step 1: Create a job description, including qualifications and salary
An employer’s first step in the PERM labor certification process is to define the job position, required qualifications, and salary. Determining the appropriate salary is essential as it cannot be lower than the prevailing wage.
According to the DOL, “The prevailing wage rate is the average wage paid to similarly employed workers in a specific occupation in the area of intended employment.”
Step 2: Request a prevailing wage determination (PWD)
After completing Step 1, employers must request a PWD from the DOL to confirm the appropriate minimum wage for the role based on its location and industry. In essence, the DOL must confirm that a business’s prevailing wage calculation is accurate.
To request a PWD, complete Form ETA-9141 (Application for Prevailing Wage Determination), then submit it to the National Prevailing Wage Center. The DOL recommends doing so electronically.
The time it takes the DOL to complete a PWD varies, but prospective employers should expect to wait at least five months.
Step 3: Conduct recruitment efforts
Employers must conduct a series of recruitment activities to prove no qualified U.S. talent is available. These efforts include:
- Advertising the position in local newspapers on Sundays at an appropriate interval and on job boards.
- Posting job notices internally and with the appropriate State Workforce Agency.
- Documenting all recruitment outcomes, including applications and interviews.
Step 4: File Form ETA-9089
Once recruitment is complete and the employer has identified no qualified U.S. workers, the employer must submit ETA Form 9089 (Application for Permanent Employment Certification) to the DOL. Then, the DOL reviews the application to ensure compliance with PERM labor certification requirements.
If the DOL approves the application, the employer will receive PERM labor certification and may proceed with the foreign worker’s green card application.
Common mistakes to avoid during the PERM process
There are many steps to the PERM labor certification process—and just as many opportunities to make mistakes. Pitfalls to avoid during the process include:
- Incomplete recruitment documentation. Failing to maintain meticulous documentation of recruitment activities, including job postings, applicant evaluations, and interview notes, can lead to PERM labor certification denial. The DOL requires employers to keep detailed records for five years from the application filing date and may request this documentation during an application audit.
- Prevailing wage discrepancies. Offering a wage below the prevailing rate can lead to delays in certification, application audits, or certification denial.
- Misrepresentation on Form ETA-9089. Even minor typographical errors or incorrect information on Form ETA-9089 can lead to the denial of a PERM application. Since corrections are not permitted after submission, employers must withdraw and refile the entire application, causing significant delays in the certification process.
- Missed deadlines. Employees must complete recruitment efforts within specific timeframes after requesting a PWD and before filing the PERM application. Missing a deadline forces employers to restart the entire recruitment process from the beginning.
Recent decreased funding for the DOL has increased the length of the PERM labor certification process, according to Samantha Wolfe, a partner at the U.S. law firm Holland & Hart. Wolfe wrote in 2024 that “The process—essential for sponsoring foreign workers for permanent residency—has become more complex due to funding shortfalls at the Department of Labor’s Office of Foreign Labor Certification (OFLC), increased scrutiny of applications, and longer processing times.” For these reasons, it is more important than ever to avoid the common mistakes listed above.
FAQs about PERM labor certification
1. What is the purpose of the PERM labor certification?
- Its purpose is to ensure U.S. employers can fill critical positions while protecting U.S. workers from unfair competition.
2. How long does the PERM process take?
- The timeline varies but generally takes 6-18 months, depending on prevailing wage determination and DOL processing times, among other factors.
3. What happens if qualified U.S. workers are found during recruitment?
- If qualified U.S. workers are identified, the employer cannot hire a foreign worker for that role under the PERM process.
4. Is PERM certification a guarantee of a green card?
- No, it is only one step in the employment-based green card application process. Additional steps include filing an I-140 Immigrant Petition for Alien Workers form with U.S. Citizenship and Immigration Services.
5. Can small businesses apply for PERM labor certification?
- Yes, as long as they meet the DOL’s requirements, including the ability to pay the offered wage and adherence to recruitment guidelines.
Disclaimer: The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. © 2025 Velocity Global, LLC. All rights reserved.
