Can Employers File H-1B Petitions and Lcas During a U.S. Government Shutdown?

(UNITED STATES) A federal government shutdown stops the Department of Labor from processing any new Labor Condition Application requests, and that instantly blocks most new H-1B filings that need fresh certification. USCIS keeps working because it is fee-funded, but employers cannot move forward without the DOL step first.

That split system leaves employers, foreign workers, and law firms in a tight spot. E-Verify also goes offline during a shutdown, so hiring teams must use paper Form I-9 procedures until the system comes back.

DOL shutdowns freeze the first step in H-1B filing

The hard stop begins at the Department of Labor’s Office of Foreign Labor Certification. When Congress does not approve funding, OFLC suspends Labor Condition Application processing and turns off the FLAG portal, the online system used for LCAs, prevailing wage requests, and PERM filings.

Without an approved LCA, most new H-1B petitions cannot move ahead. USCIS may still accept petitions, but it cannot approve a filing that lacks the required DOL certification. That is why shutdowns hit H-1B employers so fast.

VisaVerge.com reports that this remains the main bottleneck even as 2026 immigration policy changes add more cost and review. Employers trying to hire a worker from abroad face the worst delay, because they need DOL approval before USCIS can take the case.

The Department of Labor’s foreign labor certification page remains the best official place to watch for operating notices and restart updates: Department of Labor Foreign Labor Certification.

USCIS keeps filing windows open, but only for complete cases

USCIS does not shut down in the same way because it depends largely on filing fees. That means the agency can keep processing H-1B petitions that already have certified LCAs attached.

This matters for three common filings:

• H-1B extensions with a pre-certified LCA
• H-1B changes of employer with an approved LCA
• Other H-1B petitions already ready for filing when the shutdown starts

Premium processing also continues for eligible cases. Still, that speed only helps when the petition is complete. A missing LCA stops the filing before USCIS review begins.

In 2026, employers also face a new $100,000 fee for certain H-1B petitions for workers abroad, plus new vetting steps and a tougher review environment. Those changes make early filing more important, not less.

E-Verify goes dark and hiring teams return to paper files

A shutdown also suspends E-Verify, which means employers cannot submit new electronic work authorization checks until the system reopens. Companies must complete Form I-9 on time and then hold the E-Verify case until service resumes.

That creates a paperwork burden, but it also creates a compliance risk. The employer still has to verify identity and work authorization within the normal I-9 timeline. For official instructions, USCIS keeps the Form I-9 page here: Form I-9 instructions and acceptable documents.

During a shutdown, human resources teams should keep careful records of every hire, every attempted filing, and every failed portal login. Those records matter later if an auditor asks why the case was delayed.

2026 wage rules add pressure on top of the shutdown

Shutdowns are difficult on their own. In 2026, they arrive alongside a more demanding H-1B system.

DOL has proposed H-1B wage changes that would raise entry-level pay floors by more than 30%, moving them from the 17th to the 34th wage percentile. That proposal also affects H-1B1, E-3, and PERM cases. Public comments closed roughly 60 days after the proposal, and final action remains pending.

For employers, that means more planning before filing a Labor Condition Application. Wages, timing, and job location now need to be checked even earlier than before. A shutdown then adds a second delay, because the wage request and the LCA cannot be processed while OFLC is closed.

Employers face missed start dates, rescinded offers, and project delays

The most immediate harm is timing. Cap-subject H-1B workers often need approval for an October 1 start date. If the shutdown blocks the LCA, the employer misses that window.

That can trigger serious knock-on effects:

• The offer may be delayed or withdrawn
• Workloads shift to other staff
• Projects lose a critical employee
• Families face longer separations

Employers with pre-shutdown LCAs can still file once they receive certification. But new hires wait. Internal transfers and overseas remote work can soften the blow, yet they bring tax, payroll, and status questions that must be handled carefully.

Many employers now build 60- to 90-day filing buffers before deadlines. That is especially important when wage rules are rising and shutdowns remain possible.

Green card cases also slow down when PERM stops

The shutdown does not affect only H-1B filings. It also pauses PERM, which employers use for many employment-based green card cases. That delay pushes back prevailing wage requests, labor certification filings, and the next steps in permanent residence processing.

For workers already on H-1B status, a PERM delay can eat into the six-year clock. That becomes a real problem for employees near the end of their H-1B time. Employers then have to think about extensions, recapture, or country-based backlog issues.

When the government reopens, DOL often faces a pileup of filings. That backlog can slow the system for weeks or longer, especially if the shutdown was long.

Travel, consular work, and border checks stay uneven

Other parts of the immigration system keep moving, but not evenly. Department of State consular work continues because it is fee-supported, though staffing and appointment delays can still appear. CBP ports of entry stay open, so valid H-1B workers can still travel with the right documents.

Even so, 2026 travel rules have added more screening for some nationals and some travel histories. That means H-1B stamping and border inspection can take longer, especially for cases that draw extra review.

Employers with global teams should expect a patchwork system. One office may be open while another is closed. One petition may move quickly while another sits untouched.

What employers are doing to reduce the damage

Companies with active H-1B hiring programs are adjusting fast. The most common response is earlier filing. Another is tighter recordkeeping.

Practical steps now include:

• Filing LCAs months ahead of expected start dates
• Saving screenshots of FLAG portal outages
• Keeping copies of emails and internal notes
• Moving paper I-9 completion forward on day one
• Submitting E-Verify cases as soon as the system returns
• Reviewing whether a case can use a pre-certified LCA already on file

For some employers, contingency planning now includes L-1 transfers or short-term remote work. Those options are not perfect, but they keep a project from stalling completely.

The broader climate also matters. VisaVerge.com notes that 2026 enforcement trends, higher fees, and tighter vetting amplify the pressure on companies that depend on skilled foreign workers. A shutdown does not create the problem, but it makes every delay harder to absorb.

Why the shutdown hits H-1B harder than many other visas

H-1B cases depend on several agencies working in sequence. DOL must certify the Labor Condition Application first. USCIS then processes the petition. If the worker is abroad, consular processing and border review come next.

A shutdown breaks that chain at the start. That is why even a short funding lapse can stop new H-1B hiring across the country.

For employers, the lesson is simple: the FLAG portal can disappear overnight, E-Verify can stop, and the Labor Condition Application becomes the critical filing that decides whether the rest of the case moves at all.