LMIA Explained for US Employers and Workers
A Labour Market Impact Assessment is a federal check that a Canadian employer needs a foreign worker. How it works, who applies, and what workers should know.
What an LMIA is
A Labour Market Impact Assessment (LMIA) is issued by Employment and Social Development Canada (ESDC). A positive LMIA confirms that there is a need for a foreign worker and no Canadian citizen or permanent resident is available to do the job. It is usually the employer who applies, not the worker.
The purpose is to protect the Canadian labour market. Before an employer can hire a foreign worker under this route, it must show real effort to hire locally and explain why that did not succeed.
An illustrative example
A hypothetical Canadian restaurant wants to hire an experienced chef from the United States. It advertises the job locally, documents its recruitment efforts, and applies for an LMIA. During the wait, the chef is told by a third party that he can pay for faster processing. He declines, having learned that workers should not pay for an LMIA.
When the positive LMIA arrives, he applies for his work permit with it. The permit is tied to that employer. If the restaurant closes or he leaves, he will need a new arrangement. Understanding that dependency at the start is part of making a sound decision about accepting the job.
How the process goes
- The employer advertises the job and shows efforts to recruit locally.
- The employer applies to ESDC and pays the application fee.
- If approved, the worker applies for a work permit using the positive LMIA.
- The permit is generally tied to that employer and job.
Streams
LMIA processing is divided by wage level and by sector, with separate treatment for high-wage, low-wage, agriculture, and caregiver roles. Requirements such as transition plans or recruitment minimums differ between streams. Processing times vary and change, so ask before you plan around a date.
The distinction matters to employers because the paperwork, advertising requirements, and obligations differ. A mistake in choosing the stream can delay the application.
Low-wage positions are also subject to extra restrictions. ESDC does not process certain low-wage applications where the work location is in a metropolitan area with unemployment at or above a set threshold, with exemptions for some sectors, and it limits the share of a workplace’s workforce that can be low-wage. The stream and the work location both affect whether an application can succeed.
What workers should know
- A job offer is not the same as an LMIA.
- Workers should not pay recruiters or employers for an LMIA.
- A work permit based on an LMIA is usually tied to that employer.
- If the employer does not meet its obligations, protections exist for workers.
For US employers
A US company with a Canadian operation needs to consider whether an LMIA is actually the right tool. Some arrangements, such as intra-company transfers or CUSMA categories, do not need one. Choosing the wrong route can waste months, so it is worth assessing the options first.
Questions to bring to your assessment
- Does my situation need an LMIA, or is an exemption available?
- Which LMIA stream applies to the wage level of this job?
- How long might the process take, and what is the plan if it runs long?
- What protections do I have if the employer does not meet its obligations?
- How could this job support a later permanent residence application?
Quick answers
- Does a positive LMIA guarantee a work permit? No. The worker must still apply for a work permit and be admissible. The LMIA only confirms the labour market test; it does not decide the permit application.
- Can a worker be asked to pay for an LMIA? No. The employer applies and pays the processing fee, and federal rules bar employers and recruiters from charging workers for an LMIA or for recruitment. Workers still pay their own visa and work permit fees.
- Are there extra rules for low-wage positions? Yes. ESDC does not process certain low-wage applications in metropolitan areas where the unemployment rate is at or above a set threshold, and it limits how large a share of a workplace’s workforce can be low-wage. Both the work location and the wage level matter.
Further guidance
For more background, see LMIA-exempt work permits.
Next step
Whether an LMIA is the right tool at all is worth settling first. The work permit services page lays out the alternatives, and a free assessment will test your situation against them. Processing and stream rules are set by ESDC and change.
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