Copyright Newsweek
The U.S. Department of Labor (DOL) has resumed processing key employment visa applications after a halt caused by the ongoing federal government shutdown. Following the Department of Labor's update, U.S. employers once again can submit applications for H-1B, H-2A, H-2B and PERM visa programs. "During the government shutdown, employers/immigration attorneys have been unable to obtain certified Labor Condition Applications (LCAs), which is a prerequisite to filing H-1B petitions with USCIS. H-1B filings submitted without the LCA would be rejected as incomplete," Scott Bettridge, chair, immigration practice at Cozen O'Connor, told Newsweek. "This has created a growing backlog of cases; it has delayed start dates of employment for many foreign nationals and increased the risk for individuals with expiring status." The DOL's Office of Foreign Labor Certification (OFLC) restored access to its Foreign Labor Application Gateway (FLAG) platform on October 31, allowing employers to once again submit and manage applications for prevailing-wage and labor-certification determinations, which are critical steps in hiring foreign workers under temporary and permanent visa programs. Why It Matters The outage stems from a lapse in federal funding during the shutdown that began at the end of September, which temporarily disrupted FLAG access and paused the processing of employer applications. Experts have linked the disruption to the funding lapse, though the DOL announcement did not specify the cause. Experts told Newsweek that, unlike USCIS, the DOL isn’t funded by fees and relies on federal appropriations, meaning a government shutdown could be impacting its operations. What To Know Kevin Lynn, executive director of the Institute for Sound Public Policy and founder of U.S. Tech Workers, which has advocated for H-1B reforms, told Newsweek: "The Department of Labor’s resumption of prevailing wage and labor certification processing simply restores the administrative pipeline that employers rely on for H-1B and PERM filings. "In practical terms, it means employers can once again file and receive wage determinations needed to move forward with petitions that displace American workers in a tough job market to cut labor costs." He added that employers should anticipate delays as the DOL clears backlogs but also should use this period to reassess the reliance on visa labor. "Employers can once again continue scouring South Asia for the cheap and compliant labor they can use to displace the American workers they deem to be expensive, undeserving and expendable," Lynn said. Although the DOL did not explicitly mention H-1B visas, the FLAG portal is the platform used to submit LCA's, a required step before employers can file H-1B petitions with U.S. Citizenship and Immigration Services (USCIS). The restoration of FLAG access effectively enables employers to resume filing LCAs, which are necessary for both H-1B and PERM filings. PERM filings are labor-certification applications submitted to the U.S. Department of Labor to show that hiring a foreign worker for a permanent position will not displace qualified U.S. workers and meets prevailing wage requirements. Approval is required before employers can file an I-140 petition for an employment-based green card. Once LCAs are certified, typically within seven to 10 days, employers can move forward with filing H-1B petitions with USCIS, a critical step for companies relying on highly skilled workers in sectors such as technology, health care and research. Bettridge noted that because of the month-long closure, backlogs are expected, and employers should plan submissions carefully, track timelines and anticipate longer processing periods. For foreign employees with visas nearing expiration, timely processing will be essential to maintain work authorization. Overall, while the DOL’s restart clears a key administrative hurdle, both employers and H-1B workers should expect a gradual return to normal operations rather than an immediate recovery. Employers can now submit LCAs and PERM applications, marking a functional restart for H-1B-related administrative steps. However, some experts caution that exact adjudication timelines and backlog handling remain uncertain as OFLC returns to full operations. What People Are Saying Kevin Lynn, executive director of the Institute for Sound Public Policy and founder of U.S. Tech Workers, told Newsweek: “With tens of thousands of skilled Americans still unemployed or underemployed, companies ought to look inward and prioritize U.S. workers before filing new visa petitions." Scott Bettridge, chair, Immigration Practice at Cozen O'Connor, told Newsweek: "The resumption of U.S. Department of Labor (DOL) processing is a welcome and needed update for employers, as well as for current or prospective H-1B visa holders." The Department of Labor wrote that the "system is now accessible and permits system users to prepare and submit new applications as well as submit and receive information associated with their applications pending a final determination." What Happens Next Employers and immigration counsel are advised to monitor OFLC announcements and technical assistance notices for procedural updates or clarifications.
