DOL Resumes PERM Processing During Government Shutdown: What It Means for Employers and H-1B Workers

Quick Answer

Yes. The U.S. Department of Labor (DOL) has resumed processing PERM Labor Certification applications through the Foreign Labor Application Gateway (FLAG), but Labor Condition Applications (LCAs) for H-1B, H-1B1, and E-3 programs appears to remain on hold. Employers can now move forward with PERM and prevailing wage filings, but it does not appear they can submit new LCAs required for H-1B petitions.

For H-1B workers — especially Indian nationals waiting in long EB-2 and EB-3 backlogs — this partial reopening is both relief and frustration.

1. Background: Why PERM and LCA Processing Stopped

During the federal shutdown, the DOL’s core immigration functions — including PERM Labor Certification, Prevailing Wage Determinations, and Labor Condition Applications — were suspended because the Office of Foreign Labor Certification (OFLC) depends on congressional appropriations. During this period, PERM and LCA processing was unavailable, preventing employers and applicants from moving forward with their cases.

When FLAG went offline, employers could not submit applications, and cases in process stalled. The result: missed recruitment windows, delayed green-card filings, and widespread anxiety among H-1B professionals relying on these certifications to maintain lawful status and job mobility.

2. The DOL’s Latest Announcement

In late October 2025, the DOL announced that it had restored partial operations to the FLAG system. According to its official statement, The Office of Foreign Labor Certification (OFLC) has restored full functionality for certain programs, including PERM, H-2A, and H-2B, while others appear to have remained paused. The DOL communicates decisions through its FLAG system and by mail. See DOL Contingency Plan recently announced.

Stakeholders should continue to monitor for additional announcements from the DOL regarding further changes or updates to processing.

What’s Open

• PERM Labor Certification — Employers may now file Form ETA 9089.
• H-2A and H-2B** programs** — Temporary agricultural and non-agricultural labor certifications are being accepted.
• Prevailing Wage Determinations — Processing has resumed. The PWD application is step one in the PERM process and must be completed prior to recruitment. Most prevailing wage determinations utilize the Occupational Employment and Wage Statistics survey as a wage source.

Please note: Due to the recent resumption of services, response times for prevailing wage determinations and PERM filings may be longer than usual.

What’s Still Closed (We think)

• Labor Condition Applications (LCAs) for H-1B, H-1B1, and E-3 remain suspended.
• No new LCAs can be filed or certified at this time.

Important: The DOL has not expressly included H-1B, E-3, and H-1B1 programs in its reopening plan. Employers should expect delays and a backlog when LCA processing restarts.

3. What This Means Right Now

LCAs Still on Hold (we think)

• The DOL does not appear to be currently accepting new LCA filings.
• Employers (we believe) cannot file new H-1B, H-1B1, or E-3 petitions that require an LCA.
• Backlog Warning: When the DOL eventually reopens LCA processing, significant delays are expected.
• DHS/USCIS continues adjudicating pending H-1B cases that were filed before LCA processing stopped.

PERM, H-2A, H-2B, and PWDs Are Active

• Employers can again file PERM Labor Certifications for green-card sponsorship. Once a PERM application is approved, the employer can proceed with the next steps in the green card process.
• Prevailing wage requests are being processed. The prevailing wage determination sets the minimum wage the employer must pay to the foreign worker for the position.
• H-2A/H-2B programs have resumed for seasonal work.

Expert Tip:

Employers should prepare all required documentation now and monitor the DOL OFLC News Page for confirmation of LCA resumption.

4. Impact on Indian H-1B Workers Facing EB-2/EB-3 Backlogs

Employers

Businesses sponsoring high-skilled foreign workers can proceed with PERM filings, preserving green-card eligibility and AC21 extension timelines. Throughout the PERM process, it is crucial for employers to support their employees by ensuring compliance with all requirements and facilitating each step to achieve successful outcomes. The PERM labor certification process requires employers to test the U.S. labor market through recruitment to find qualified U.S. workers. Employers are encouraged to work with immigration counsel to navigate the process of obtaining a prevailing wage determination. The sponsored foreign worker cannot be involved in the recruitment or resume review process.

Indian H-1B Workers

For Indian nationals in EB-2/EB-3 queues, every day matters. The ability to file a PERM now — even as LCAs remain frozen — offers a narrow path to protect their long-term green-card strategy. During the PERM process, the employee is responsible for maintaining eligibility and providing all necessary documentation to support the application.

Expert Insight

“For many immigrants, these bureaucratic freezes are more than paperwork delays — they’re life delays.” — Richard T. Herman

Without a PERM filing, an I-140 cannot be submitted, and without an I-140 or labor certification pending for at least 365 days, AC21 extensions beyond the six-year limit may be impossible. For many, that difference defines whether they can stay in the U.S. legally or must leave after years of waiting. The entire process to file a PERM application can take about four to six months if there are no disqualifying U.S. workers available. The recruitment process for PERM must last a minimum of 60 days and cannot exceed 180 days. When the PERM application is filed electronically, resumes are not submitted at this stage.

5. How Law Firms Responded

6. Employer & Worker Guidance

For Employers

• Do not attempt to file LCAs — submissions will not be accepted (as far as we know at time of this publication).
• Proceed with PERM and PWD filings through FLAG.
• Account for all required fees when preparing PERM and PWD filings to ensure compliance with payment procedures and avoid delays.
• Document every attempted LCA submission to show good-faith compliance once DOL reopens.
• Prepare recruitment and internal postings in advance.
• Monitor the OFLC News Page for updates.

For Workers

• Stay in communication with your employer and legal counsel.
• Track your six-year H-1B limit. Even though LCAs are paused, a timely PERM filing may still preserve extension eligibility later under AC21.
• If nearing the limit, discuss B-2 change-of-status or H-4 fallback options with your attorney.
• Retain evidence of delay (emails, screenshots, attorney letters).

7. Background on Foreign Labor Certification

The foreign labor certification process is a cornerstone of U.S. immigration policy, enabling employers to hire foreign nationals for both permanent and temporary employment when qualified U.S. workers are unavailable. Overseen by the Department of Labor (DOL), this process is designed to protect the interests of U.S. workers and ensure that foreign labor is used only when necessary and under fair conditions.

OFLC

At the heart of this system is the Office of Foreign Labor Certification (OFLC), which manages employer requests for labor certifications and prevailing wage determinations. Employers must navigate a series of steps, starting with submitting prevailing wage requests to determine the minimum wage they must offer for a specific job, based on occupational employment and wage statistics. This is followed by a rigorous recruitment process to test the labor market and demonstrate that no able, willing, qualified, and available U.S. workers can fill the position. Only after these steps can employers file a labor certification application—such as a PERM labor certification for permanent employment or H-2A/H-2B certifications for temporary or seasonal work.

FLAG

The Foreign Labor Application Gateway (FLAG) system is the DOL’s online platform for managing these filings. System users—including employers and their legal representatives—use the FLAG system to submit applications, track case status, and receive determinations. The platform is essential for ensuring that the labor certification process remains transparent, efficient, and accessible.

Government Shutdown

During the ongoing federal government shutdown, many of these critical functions were temporarily suspended, causing significant delays and uncertainty for employers and foreign workers alike. However, the DOL has now resumed processing of employer requests for prevailing wage determinations and labor certifications, including both temporary (H-2A, H-2B) and permanent (PERM) programs. This means that the FLAG system is once again accessible, allowing employers to prepare and submit new applications and continue with pending cases.

Employers should be aware that the labor certification process is highly regulated and subject to strict requirements. For example, the prevailing wage determination—based on data from the DOL’s Occupational Employment and Wage Statistics (OEWS) program—must be obtained before recruitment begins. The recruitment process itself must be carefully documented to show a good faith effort to hire U.S. workers. For certain temporary programs like H-2A and H-2B, premium processing is available to expedite decisions, but this option does not extend to PERM labor certifications.

Strict Compliance/Avoid Mistakes

Given the complexity of the process and the potential for delays—especially in the wake of a government shutdown—employers are strongly encouraged to coordinate with experienced immigration counsel. This ensures compliance with all regulations, helps avoid costly mistakes, and positions employers to respond quickly as the DOL continues to restore full operations. Staying informed about processing times, system updates, and further announcements from the DOL is essential for successful foreign labor certification filings.

In summary, the foreign labor certification process is a vital, multi-step pathway for employers seeking to hire foreign nationals, whether for permanent or temporary roles. With the DOL’s resumed processing and the FLAG system back online, now is the time for employers to prepare, submit, and track their labor certification applications and prevailing wage requests—while remaining vigilant for any further updates or changes in the regulatory landscape.

8. Legal and Policy Analysis

This shutdown underscores how fragile the employment-based immigration system is. The DOL’s dependence on appropriations—unlike fee-funded USCIS—means critical immigration infrastructure can halt overnight. The Department’s operations and reporting are organized by fiscal year, which impacts the timing of appropriations and program funding. The Department has not yet announced plans for any pending PERM labor certifications that could not be timely filed between October 1 and today.

Expert Opinion

“When our system hinges on one node — the DOL’s FLAG system — the entire chain of employment-based immigration becomes brittle.” — Richard Herman

Key Policy Issues:

• Lack of continuity funding for OFLC programs.
• No emergency mechanism for LCA certification during shutdowns.
• Legal exposure for employers unable to meet statutory deadlines through no fault of their own.

Reforms should consider fee-funding or automatic deadline extensions to protect both U.S. businesses and foreign professionals.

9. Emotional and Economic Impact

Each pause in PERM or LCA processing represents lost time and rising anxiety. Indian H-1B professionals describe delayed home purchases, postponed family visits, and mental stress over visa expiration. An audit can significantly increase the overall processing time for PERM certifications.

Cities like Cleveland and Columbus depend on these workers for healthcare, tech, and R&D. Studies by the National Foundation for American Policy (NFAP) and the Cato Institute confirm that high-skilled immigrants boost U.S. innovation and wages — yet bureaucratic pauses threaten that growth.

10. What to Expect When LCA Processing Resumes

• Expect a surge: Once reopened, submissions will spike, straining DOL resources.
• Prepare now: Have all job postings, prevailing-wage data, and employer attestations ready.
• Document everything: Keep dated records of attempted filings and correspondence with DOL.
• Watch for official notice: Only rely on formal updates from the DOL OFLC News Page. It can take approximately 6-8 months to receive a certified prevailing wage determination after filing. Employers are required to retain all recruitment documents for at least five years from the filing date.

Pro Tip: When LCA filing resumes, file immediately — delays could stretch weeks due to volume and backlog.

11. Call to Action: Get Help from Herman Legal Group

If your LCA or PERM was delayed or you’re facing status pressure, contact the Herman Legal Group today. With more than 30 years of experience, our team assists clients nationwide in PERM Labor Certification, I-140 immigrant petitions, and I-485 adjustment of status filings. We understand the urgency of green-card sponsorship and the deep stress shutdowns cause for Indian H-1B professionals and their families. For an additional fee, USCIS offers premium processing for the I-140 petition, reducing processing to 15 calendar days.

12. Key Takeaways

• PERM and PWD processing have resumed, but LCAs for H-1B, E-3, and H-1B1 appear to remain on hold.
• Employers apparently cannot file new LCAs until DOL reopens that function.
• Expect backlogs once LCA processing restarts.
• USCIS continues adjudicating pending H-1B petitions filed before the shutdown.
• Document all attempted filings and prepare now for the surge.
• Herman Legal Group provides full-service representation in PERM, I-140, and I-485 cases for employers and workers nationwide.