U.S. Labor Department Restarts Processing for H-1B and PERM Applications

The U.S. Department of Labor has officially resumed processing of Labor Condition Applications (LCAs), prevailing wage determinations, and labor certification filings for both H-1B and PERM applications. This decision restores normal operations within the Office of Foreign Labor Certification (OFLC) and its online Foreign Labor Application Gateway (FLAG) system, allowing employers to file new petitions and follow up on those delayed during the recent shutdown.

The announcement marks a significant relief for U.S. employers and foreign workers who rely on these certifications to maintain compliance and move forward with employment-based visa sponsorships.

Full Restoration of the FLAG Portal

The Department of Labor confirmed that the FLAG system is once again fully operational. Employers and immigration attorneys can now submit new LCAs, request prevailing wage determinations, and file permanent labor certifications through the portal.

The agency also noted that users can upload documents, receive notices, and track decisions on pending H-1B and PERM applications. The resumption includes the restoration of the SeasonalJobs.dol.gov registry, which supports job postings for temporary worker programs like H-2A and H-2B.

By reopening the FLAG system, the Department has reestablished a vital link in the U.S. employment-based immigration process. Without an approved labor certification from OFLC, employers cannot move forward with visa petitions through U.S. Citizenship and Immigration Services (USCIS).

Understanding the Importance of H-1B and PERM Applications

H-1B and PERM applications are central to the United States’ ability to recruit and retain foreign professionals. The H-1B program allows companies to hire highly skilled foreign nationals in specialty occupations, particularly in sectors like technology, healthcare, and engineering.

The PERM labor certification, on the other hand, is required for sponsoring foreign workers for permanent residency through employment-based green card categories. Both processes start with approval from the Department of Labor before petitions proceed to USCIS.

When the FLAG system went offline, it created a chain reaction of delays, leaving employers unable to file or track applications. For many, this led to missed deadlines, hiring disruptions, and compliance concerns.

Cause of the Disruption

The temporary suspension of processing was caused by a lapse in federal funding earlier this year, which resulted in a government shutdown. During that period, OFLC operations were completely halted.

The shutdown meant employers could not submit Labor Condition Applications, request prevailing wage determinations, or proceed with PERM filings. Thousands of businesses and applicants were left in limbo as the DOL’s systems remained inaccessible.

The Department clarified that the interruption was unrelated to its ongoing modernization initiatives but was instead a direct result of the funding lapse. With appropriations now restored, all digital systems are back online and accepting applications once again.

Managing the Backlog

The reopening of the FLAG portal brings relief, but employers should prepare for longer processing times as the Department clears pending cases. During the outage, many applications stalled at different stages of review, creating a significant buildup.

The OFLC now works actively to restore normal workflows and aims to reach full capacity within the coming weeks. Employers should adjust their timelines, especially for time-sensitive H-1B and PERM petitions tied to visa extensions or green card filings.

Key Steps for Employers to Take

Employers who rely on foreign talent should move quickly to stabilize their immigration processes. Several actions can help mitigate the effects of the delay:

  1. Confirm FLAG access: Ensure your organization’s login credentials are working and that all accounts are synchronized for new filings.

  2. Resubmit delayed applications: Check if any H-1B or PERM applications were interrupted or returned during the outage, and refile where necessary.

  3. Track recruitment timelines: For PERM applications, review recruitment validity periods to ensure compliance with DOL timelines.

  4. Prioritize critical cases: Focus on cases tied to employee status maintenance, upcoming expirations, or business-critical positions.

  5. Maintain communication: Keep applicants informed of progress to manage expectations and prevent unnecessary anxiety.

Taking these steps will help employers avoid further setbacks while the DOL works through pending applications.

Impact on Employers and Foreign Workers

The restoration of H-1B and PERM application processing brings immediate relief to thousands of companies, especially in technology, healthcare, education, and engineering. These sectors rely heavily on foreign professionals to fill specialized roles that may not have sufficient domestic applicants.

For foreign workers, the update means their career and immigration timelines can now move forward. Many individuals waiting on PERM certifications to file adjustment-of-status applications can now resume their plans. Similarly, H-1B holders needing timely LCAs for transfers or extensions can once again proceed without disruption.

This development also stabilizes the U.S. immigration system, which depends on consistent government processing for employer-sponsored visas. The reopening signals a return to regular workflow and renewed trust among global employers seeking to expand operations in the United States.

Broader Implications for U.S. Immigration

The H-1B and PERM programs represent the backbone of employment-based immigration in the United States. When these systems pause, the effects extend beyond employers and applicants. Universities, research institutions, and startup ecosystems also suffer when skilled immigration pipelines are disrupted.

By restoring full processing capacity, the Department of Labor has helped reestablish continuity across multiple visa categories. The resumption also assures employers that the federal government remains committed to supporting lawful employment-based immigration, even amid budget uncertainty.

This decision further underscores the importance of modernizing digital immigration infrastructure to prevent similar shutdown-related disruptions in the future.

What to Expect in the Coming Weeks

Although the FLAG system is now functional, employers should brace for a surge in submissions. The Department has advised that processing and response times may initially be slower as pending requests are reviewed alongside new filings.

Organizations with large-scale recruitment or sponsorship needs should allocate extra time for compliance verification, prevailing wage determinations, and labor certification approvals. Employers who rely on external immigration counsel should also coordinate closely to ensure documentation accuracy during this high-volume period.

Despite potential delays, the overall sentiment among stakeholders is positive. The restart gives businesses and applicants a predictable path forward, allowing them to make strategic hiring and relocation decisions with renewed confidence.

Conclusion

The U.S. Department of Labor’s resumption of H-1B and PERM application processing marks a turning point for employment-based immigration after weeks of disruption. With the FLAG system back online, employers can file LCAs, request prevailing wages, and pursue labor certifications without procedural barriers.

Although backlogs remain, this reopening restores momentum for skilled immigration and reinforces the Department’s commitment to transparency, efficiency, and continuity. Employers should act swiftly to manage their filings, monitor system updates, and maintain open communication with their foreign employees.

For thousands of professionals waiting to advance their careers in the United States, the news signals progress and a renewed sense of stability in the country’s employment-based immigration landscape.

Need help filing your H-1B or PERM application? Contact Maple Crest Immigration Law Firm today for expert guidance and fast, compliant processing of your employment-based immigration case.

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