US Employers Take Note: H-1B Visa, PERM, and EEO Reporting Developments

After the rollout of multiple new and revised employment laws in early July, US employers were likely hoping for a few quiet months before the compliance landscape changed again. But there’s no rest for the weary. Here are the latest developments.

More H-1B visa changes

A Department of Homeland Security (DHS) rule published on August 10, 2026, imposes a $4,000 USD biometric screening fee for extension-of-stay applications for H-1B visa holders. The fee was previously required only for initial approvals of status or changes of employer.

The rule also creates a $4,500 USD biometric entry-exit fee for intracompany transfers, impacting those applying for an L-1 visa. The rule goes into effect on September 9, 2026, so employers need to begin factoring this into their visa-related costs.

Also in early August, the DHS submitted a proposed rule, Eliminating the Discretionary 60-day Grace Period, that removes the 60-day period following the termination of an H-1B visa holder’s position. The grace period has given visa holders a chance to find a new job in the US after losing the role they were sponsored for — a privilege they will lose when the rule is finalized.

One of the more notable H-1B developments this summer concerns the $100,000 USD fee introduced in September 2025. In June 2026, the US District Court for the District of Massachusetts ruled the fee illegal. The government pursued a motion to stay pending appeal. However, the motion was denied on July 24, 2026, which means the fee cannot be collected. Potential H-1B sponsors should monitor developments and be prepared for a possible restoration of the fee.

PERM program and the protection of US workers

In July, the Department of Labor (DOL) issued a Notice of Proposed Rulemaking around the permanent labor certification program (PERM), noting that regulations governing the PERM process have not been modified since 2004. (PERM is the electronic system employers use in the process of sponsoring a foreign worker for an employment-based green card.)

Through the rulemaking exercise, the DOL intends to improve minimum standards for recruiting US workers, strengthen protections for laid-off US workers, and enhance compliance with PERM requirements related to non-discriminatory recruitment and hiring practices as well as record-retention requirements.

It’s not clear when the rule — Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program — will be finalized. But the exercise suggests the DOL is looking more closely at how companies recruit for permanent roles.

EEOC reporting updates

Like the DOL, the Equal Employment Opportunity Commission (EEOC) also plans to direct more scrutiny toward hiring preferences for foreign nationals. As part of its review, the EEOC revealed that it may examine policies, programs, or practices that prioritize PERM applicants or those who hold guest worker visas.

In other EEOC news, the organization proposed a rule on July 21, 2026, that would officially remove the EEO-1 reporting requirement, stating that it would save time and costs for more than 100,000 employers across the US. EEO-1 reporting is an annual exercise in which private-sector employers with 100 or more employees, as well as federal contractors with at least 50 employees and a federal contract or subcontract worth $50,000+ USD, must collect and submit demographic information such as the gender, race, and ethnicity of their workers.

The EEOC also proposed an end to race and gender reporting under the following EEO reports:

• EEO-2 for certain joint-labor management committees
• EEO-3 for labor organizations
• EEO-4 for state and local governments
• EEO-5 for elementary and secondary school systems and districts
• EEO-6 for institutions of higher education

The EEOC’s proposal was issued in a Notice of Proposed Rulemaking. Employers should watch for a finalized rule later in the year.

Sources: Fisher Phillips, Fisher Phillips, Murthy Law Firm, Equal Employment Opportunity Commission, OnLabor