L-1 to H-1B Change of Status Pending During a Shutdown: What Happens

(UNITED STATES) Employers and foreign workers planning a shift from L-1 to H-1B face familiar uncertainty whenever Congress approaches a funding lapse: which immigration services stop and which carry on. During a government shutdown, USCIS continues to adjudicate properly filed cases, including L-1 to H-1B change of status petitions that already include a certified Labor Condition Application (LCA). But LCA processing at the Department of Labor (DOL) halts, blocking any new H-1B filings that still need a certified LCA and potentially delaying extensions.

Why the split matters

USCIS operates largely on filing fees, so its casework often proceeds even when appropriations stall. By contrast, the DOL relies on congressional funding. When that funding stops:

• DOL suspends immigration casework, including LCAs, prevailing wage requests, and PERM.
• Because an H-1B petition cannot be filed without a certified LCA, no new H-1B filings or extensions that need a fresh LCA can move forward until the DOL reopens and clears its backlog.

For applicants whose petitions are already at USCIS with a certified LCA on file, the situation is clearer: adjudications continue. Officers can keep reviewing evidence, issuing approvals, or requesting additional documentation. L-1 petitions and extensions are not directly affected by a shutdown because L-1 status itself does not depend on DOL processing.

The choke point arises when a worker needs to change from L-1 to H-1B and the case requires a new LCA.

Timing and strategic implications

The timing of LCA processing is therefore central. Employers that secured certified LCAs before a funding lapse place their teams in a stronger position; those that did not will likely need to wait. Analysis by VisaVerge.com shows shutdown timing has repeatedly shaped late-season H-1B filing strategies, pushing companies to lock in certified LCAs early whenever a budget standoff appears likely.

There is a narrow safety valve: historically, USCIS has accepted late H-1B filings when the delay is directly caused by a shutdown, provided the employer supplies evidence showing the LCA could not be certified while DOL systems were offline. Employers should retain:

• Proof of LCA submission attempts
• Internal email timelines
• Screenshots of DOL outage notices

This documentation can help when requesting USCIS to accept a late filing. It does not erase the delay but can prevent workers from losing eligibility due to circumstances beyond their control.

Core operations during a shutdown

• USCIS: Mostly open because it is fee-funded. Pending L-1 to H-1B change of status cases that were already filed with certified LCAs continue to be adjudicated.
• DOL: Immigration processing stops. That includes LCA processing, prevailing wage determinations, and PERM filings. Without a certified LCA, employers cannot file new H-1B petitions or certain extensions.
• E-Verify: Suspended. Employers must still complete Form I-9 for new hires and should enter E-Verify data after the system returns. The official Form I-9 is available on the USCIS website at Form I-9, Employment Eligibility Verification.
• Department of State and CBP: Consular operations and border inspections remain open but may face staffing limits or slower processing.

For employers, decision-making hinges on LCA status:

• If your L-1 to H-1B petition is already pending at USCIS with a certified LCA, expect continued processing.
• If you still need an LCA, expect a filing delay and prepare documentation to support a late filing once DOL services restart.

To track LCA program guidance, the DOL maintains public information through the H-1B program page of the Office of Foreign Labor Certification: https://www.dol.gov/agencies/eta/foreign-labor/programs/h-1b.

Guidance for workers in L-1 status

Workers in L-1 status should:

• Review I-94 validity, work authorization dates, and travel plans.
• Understand that existing L-1 employment can continue while the shutdown occurs, subject to normal terms.
• Discuss with the employer whether L-1 terms can be maintained until DOL resumes if the shutdown freezes LCA processing.
• Keep records of any missed filing windows caused by the outage; that documentation may support a late H-1B submission with a clear explanation.

Avoid travel that could disrupt a pending change-of-status application if the shutdown is likely to delay processing.

Practical steps for employers and workers

1. File LCAs early when a budget fight looms. Front-loading LCA processing reduces risk for L-1 to H-1B changes and H-1B extensions.
2. Keep a shutdown file. Save DOL outage notices, screenshots, and correspondence showing you could not complete LCA processing—this can support a request for USCIS to accept a late H-1B filing tied to the shutdown.
3. Maintain L-1 status where possible. If a worker’s L-1 remains valid, they can continue working under L-1 terms while waiting for LCA processing to resume.
4. Manage onboarding:
   • Complete Form I-9 on time.
   • Enter E-Verify data once the system is back up.
   • Follow the official instructions posted with Form I-9, Employment Eligibility Verification.
5. Communicate travel limits. Even though consulates and CBP remain open, budget-related staffing issues may cause delays.
6. Monitor agency announcements. Watch for updates from USCIS and the DOL’s Office of Foreign Labor Certification on service resumption and any post-shutdown flexibilities.

Administrative and operational planning

When DOL restarts, demand typically surges and LCA queues can lengthen. That can compress filing timelines and create secondary delays even after the shutdown ends. Employers should:

• Plan staffing coverage for HR and legal teams, especially in the first two weeks after the government reopens.
• Prioritize pushing pending LCA requests and submitting paused H-1B filings quickly.

During prior funding lapses, the E-Verify pause caused confusion for new hires. The rule is simple:

• Complete Form I-9 on time.
• Enter E-Verify data once the system is back.
• Do not take adverse action against a worker because you cannot run E-Verify during the shutdown.
• Keep a log noting the hire date, I-9 completion, and the date you later submitted details to E-Verify.

Human impact and communication

For families and teams, the effects are tangible. Examples include:

• A spouse waiting to switch employers on H-1B may face weeks of limbo if an LCA cannot be certified in time.
• A manager counting on an L-1 to H-1B move to fill a critical role may need to shift workloads or extend an assignment.

These are not just paperwork delays; they affect school schedules, housing plans, and projects with tight deadlines. Clear communication between HR, counsel, and employees helps set expectations and reduces stress during the pause.

Key takeaway: If your L-1 to H-1B change of status petition was filed with a certified LCA before the government shutdown, USCIS continues processing. If you still need a certified LCA, filing must wait until DOL reopens. When that wait causes you to miss a deadline, USCIS may accept a late filing if you can show the delay resulted from the shutdown.

In a system where each agency runs on separate funding, shutdowns create uneven slowdowns. LCA processing is the critical bottleneck. Planning ahead—especially for L-1 to H-1B transitions and H-1B extensions—can prevent missed windows and help projects resume once the government is funded again.