In the world of business, mergers, acquisitions, and other major financial transactions can significantly impact various aspects of a company’s operations. One area that often raises concerns is the effect on immigration matters—particularly the validity of a pending or approved PERM labor certification. Unless the acquiring company assumes all of the rights and obligations tied to the original labor certification (LC) application, the certification itself may be disrupted or invalidated.
This guide explains how corporate changes such as mergers and acquisitions can affect the PERM green card process and I-140 petition. Because every case is unique, it is always wise to consult with immigration attorneys at Green Card Link before taking any action.
Green Card Applications During Corporate Restructuring
When a merger or acquisition occurs, the impact on a pending green card application depends on two main factors:
- Successor-in-Interest Requirements – Whether the new company can legally and practically assume all obligations of the predecessor company.
- Stage of the Green Card Process – At what stage the green card application was when the corporate restructuring took place.
Understanding the Successor-in-Interest Rule
“Successor in interest” means that the new entity takes on all obligations, liabilities, and assets of the prior company, including immigration sponsorship responsibilities. To meet these requirements, the acquiring company must show it is ready and able to continue employing the sponsored worker in the same role and under the same conditions as the original employer.
For example, in the case of an H-1B merger, if the new company allows the employee to continue performing the same job duties in the same location (Metropolitan Statistical Area), there is no need for an amended petition or new Labor Condition Application (LCA). U.S. immigration law clearly provides that amended H-1B petitions are not required when a corporate restructuring occurs, so long as the new entity succeeds to the interests and obligations of the original employer.
The Three Stages of Employment-Based Green Cards
Employment-based green card cases usually involve three key steps:
- PERM Labor Certification
- Form I-140 (Immigrant Petition for Alien Worker)
- Form I-485 (Application to Register Permanent Residence or Adjust Status)
The effect of a merger or acquisition on the green card process varies depending on which of these stages the employee is in when the corporate change takes place.
Company Mergers and the PERM Application
If a merger or acquisition occurs while the PERM labor certification is pending, the application may remain valid—provided the new company qualifies as the successor in interest. This typically requires the acquiring company to assume all assets and liabilities of the original employer, including contractual rights, intellectual property, receivables, debts, and immigration responsibilities.
When this is the case, the successor company may continue the PERM process for foreign workers without starting over.
When the Merger Happens Before PERM is Filed
If the merger or acquisition takes place before a PERM case is officially filed, the new company must prove that it is the successor to the interests of the original employer. This includes reviewing whether the required pre-filing steps—such as recruitment efforts—were carried out correctly and remain valid.
If recruitment was not completed properly or if corporate changes affect the validity of the recruitment process, the successor company may need to restart the process. Since the Department of Labor (DOL) can audit a PERM case at any time, the successor employer must be prepared to provide solid evidence to support the application.
It is also crucial that all recruitment advertisements and the ETA Form 9089 list the correct employer’s name at the time of filing. Any discrepancy between the employer listed in advertisements and the one on the PERM application could create major legal complications.
Case Example: PERM Green Card During a Merger
Consider a scenario where Company X begins the recruitment process for a PERM case, listing its name on all required advertisements. Before filing the ETA Form 9089, Company X is acquired by Company Y. When Company Y files the application, its name appears on the form.
Because of this change, Company Y must prove that it is the successor in interest to Company X, particularly if the case is audited by the DOL. In complex cases like this, audits are highly likely, making it essential to have documentation ready to demonstrate compliance.
When the Merger Happens After PERM is Filed
If the merger occurs after the PERM application has already been filed (with the employer’s name consistent across all documents), the successor company must still establish that it qualifies as the successor in interest.
When the requirements are met, the new company can rely on the previously filed PERM application and continue with green card sponsorship without having to start the process again.
Protecting Your Green Card Case During Corporate Changes
The green card process can be complicated, especially when corporate mergers and acquisitions are involved. Employers and employees alike should ensure compliance with U.S. immigration regulations to avoid delays, audits, or denials.
If your company is undergoing a merger or acquisition and you are concerned about the impact on your PERM labor certification or green card process, it is strongly recommended to seek guidance from an experienced immigration attorney at Green Card Link. Their team can carefully review your case, determine successor-in-interest eligibility, and help safeguard your immigration application through every stage of the process.
Company Merger During I-140 Petition
When a company merger or acquisition occurs after filing Form I-140, the steps required will depend on whether there is a change in the legal entity. If no change in the legal entity occurs, no additional action is necessary regarding the already-submitted I-140 petition. However, if a new legal entity is created through the merger or acquisition, the succeeding company may rely on “successor in interest” eligibility to file an amended I-140 petition.
If the successor in interest eligibility requirements are met, the foreign employee can retain their original priority date without needing to file a new I-140. To qualify as a successor in interest, the U.S. Citizenship and Immigration Services (USCIS) requires proof of three key elements:
- Same Job Opportunity – The role offered by the successor company must be identical to the position described in the original labor certification.
- Burden of Proof – The successor company must provide supporting evidence, including financial documentation from the predecessor, demonstrating the ability to pay the prevailing wage from the labor certification filing date.
- Ownership Transfer – The company must fully document the transfer and assumption of assets, liabilities, and ownership from the predecessor to the successor.
Documents to Establish Successorship
To prove successorship during a merger or acquisition, USCIS requires strong documentary evidence. Examples include, but are not limited to:
- Official acquisition or merger contracts
- Closing and mortgage documents
- SEC filings such as Form 10-K
- Audited financial statements from both the predecessor and successor
- Property transfer or updated business licenses
- Public reports or press releases announcing the merger or acquisition
The successor company must show clear continuity of operations and compliance with Department of Labor requirements. Supporting evidence remains essential to ensure approval of the I-140 petition.
Historically, USCIS only accepted successor-in-interest petitions if the merger or acquisition occurred after the labor certification was approved. Today, however, a successor company may file at any point in the PERM process, provided it can prove legitimate acquisition of the predecessor’s business and obligations.
What If Successor in Interest Requirements Are Not Met?
If the successor company cannot establish successor in interest eligibility, the foreign worker’s green card application could face complications. Because each case is unique, it is strongly recommended to consult with immigration attorneys at Green Card Link. They can evaluate your situation, explain potential risks, and provide guidance on the best course of action.
Merger During I-485 Petition
When a merger or acquisition occurs during the adjustment of status (Form I-485) stage, the process is often simpler. The impact depends largely on how long the petition has been pending.
If the I-485 has been pending for 180 days or more, the application becomes “portable.” This means the beneficiary can continue with the process while working for a different employer, as long as the new role is in the same or similar occupational classification as the one described in the original green card petition. In such cases, the new employer’s primary responsibility is to confirm that the job duties align with the underlying application.
I-9 Compliance During Corporate Changes
Form I-9 is a mandatory employment eligibility verification form that confirms an employee’s identity and work authorization in the United States. When a merger or acquisition takes place, the successor company has two options:
- Require all employees to complete new Form I-9s
- Accept existing I-9 forms from the predecessor and assume all associated compliance risks and liabilities
The safest practice is for the successor company to conduct a thorough I-9 audit before finalizing the merger or acquisition. This ensures compliance with federal regulations and minimizes potential penalties.
PERM and Company Mergers
Corporate changes can also affect the PERM labor certification process. Some of the areas that may require review include:
- PERM Labor Certification
- PERM Labor Certification Audits
- PERM Prevailing Wage Determinations
- PERM Advertising and Recruitment Requirements
How Green Card Link Can Help
At Green Card Link, its immigration attorneys have in-depth experience handling complex green card cases impacted by corporate restructuring, mergers, and acquisitions. The immigration attorneys at Green Card Link work closely with both employers and foreign employees to navigate successor in interest filings, I-485 portability issues, and I-9 compliance obligations.
With extensive knowledge of PERM, I-140, and adjustment of status processes, the immigration attorneys at Green Card Link are equipped to guide you through each step of your case. From the initial consultation to filing and compliance, Green Card Link provides clear strategies tailored to your situation—ensuring you stay on track toward permanent residency.