Navigating PERM Recruitment and Deterring False Personas in the Age of AI

The PERM labor certification process has always demanded meticulous attention to detail, rigorous documentation, and unwavering compliance with Department of Labor (DOL) regulations. In today’s digital age, as AI-powered solutions reshape the employment landscape, employers are faced with unprecedented challenges to evolve their PERM recruitment strategies while maintaining the integrity of the PERM regulations.

The Perfect Storm: AI Meets PERM Compliance

While AI has opened access to professional-quality resume writing and application materials, it has also made it easier for unqualified candidates to present themselves as meeting PERM requirements, potentially undermining the labor certification process. Furthermore, recent cases of infiltration by North Korean remote IT workers into U.S. organizations pose even greater danger, as they utilized stolen or fabricated identities generated by AI for hiring process. See https://www.pbs.org/newshour/show/how-north-korean-operatives-are-infiltrating-u-s-companies-to-fund-weapons-programs

Failure to comply with the PERM recruitment can lead to application denials, debarment from the program, including significant legal consequences. Employers, therefore, must maintain PERM recruitment standards that can distinguish between legitimate candidates who used AI to present themselves professionally and entirely and deliberately fabricated applicants, exploiting the recruitment process.

Building Verification Systems

Due to the DOL’s increasing enforcement, employers are not only required to identify fraudulent applications, but also must document their detection and rejection processes. Building a streamlined verification system, as suggested below, should demonstrate employer’s good faith efforts in recruiting qualified workers, as well as being in compliance with PERM regulations.

• Education verification: employers should make a direct contact with educational institutions to verify specific degrees earned by requesting official transcripts.
• Employment verification: employers should have a direct conversation with former employers/supervisors to verify claimed experience.
• Professional licensing and certification verification: employers should make a direct contact with issuing bodies to verify the legitimacy of claimed licenses/certifications
• Technical assessment and skills verification: employers must conduct structured in-person or zoom interviews requiring candidates to explain or solve complex issues in real-time to demonstrate technical skills. Multiple interview rounds with different team members can also help identify inconsistencies in candidate responses.
• Reference verification: employers should conduct detailed conversations with references to confirm specific projects, prior employments, degrees earned prescribed on resumes.

Other verification steps to consider:

• Verifying candidates’ identities via live video calls and recording the sessions
• Confirming real digital footprint, such as physical address and phone numbers
• Avoiding reliance on VoIP-only contact details
• Watching for reused photos and resumes
• Monitoring login behavior, including times and locations
• Carefully vetting staffing agencies and freelance platforms
• Blocking unauthorized remote access tools and tracking device usage

Leveraging Technology for Fraud Detection

While AI can be used to create counterfeit applicants, it can be used to detect fraudulent applications. Background verification services have evolved to include AI-powered analysis capable of cross-referencing multiple databases, identifying inconsistencies across various records, and flagging applications with suspicious patterns and unusually formatting.

Digital forensics tools can analyze application documents for signs of AI generation, including metadata analysis, writing pattern recognition, and consistency checks across multiple documents. While these tools should supplement rather than replace human judgement, they can provide critical insights to the verification process.

Future-Proofing PERM Recruitment

Employers who stay ahead of changes in AI technology will be better positioned to identify qualified candidates and avoid inadvertently hiring fabricated candidates with nefarious agenda.

This means investing in ongoing training for recruitment teams, staying current with AI developments, and continuously refining verification processes based on emerging threats and regulatory changes. Therefore, navigating PERM recruitment and deterring false personas in the age of AI requires comprehensive approach. This includes establishing robust internal verification systems, implementing AI-driven detection tools, and training HR teams to recognize signs of AI-generated content. 

This communication is not intended to create or constitute, nor does it create or constitute, an attorney-client or any other legal relationship. No statement in this communication constitutes legal advice nor should any communication herein be construed, relied upon, or interpreted as legal advice. This communication is for general information purposes only regarding recent legal developments of interest, and is not a substitute for legal counsel on any subject matter. No reader should act or refrain from acting on the basis of any information included herein without seeking appropriate legal advice on the particular facts and circumstances affecting that reader. For more information, visit www.buchalter.com.