LMIA Rules And Requirements For Canadian Employers And Workers

LMIA rules determine when a Canadian employer must show that hiring a foreign worker will not negatively affect the Canadian labour market.

A Labour Market Impact Assessment is issued by Employment and Social Development Canada through the Temporary Foreign Worker Program.

A positive LMIA generally confirms that the employer has a genuine job offer and that reasonable efforts were made to recruit Canadians or permanent residents before hiring a temporary foreign worker.

An LMIA is not a work permit and does not by itself authorize a foreign national to work in Canada.

What An LMIA Does

Most employers need an LMIA before hiring a temporary foreign worker for an employer-specific position, unless the position or worker qualifies for an exemption.

The assessment examines whether there is a need for the foreign worker, whether Canadians or permanent residents are available for the job, and whether the employer and job offer are genuine and legitimate.

If the application is approved, the employer receives a positive LMIA decision letter and employment details for the worker.

The worker then uses the LMIA information, the job offer and supporting documents to apply to Immigration, Refugees and Citizenship Canada for an employer-specific work permit.

IRCC separately assesses the worker’s work permit application, admissibility, qualifications and ability to meet the requirements of the requested permit.

When An Employer May Not Need An LMIA

An LMIA may not be required where a worker already holds a valid open work permit or where the position qualifies for an LMIA exemption under the International Mobility Program.

LMIA exemptions can apply for specific economic, social, cultural, reciprocal or public-policy reasons.

Employers should identify the correct exemption before submitting an offer because an LMIA-exempt employer generally has to use the IRCC Employer Portal and pay the applicable employer compliance fee, unless an exemption from that fee applies.

An employer should not assume that a job offer is LMIA-exempt simply because the worker is highly skilled or has previously worked in Canada.

Main LMIA Streams

Canada’s LMIA system includes different streams and specialized processes based on the occupation, wage, industry, location and immigration objective.

• High-wage positions: These positions meet or exceed the applicable provincial or territorial hourly wage threshold.
• Low-wage positions: These positions fall below the applicable provincial or territorial hourly wage threshold and are subject to additional restrictions.
• Primary agriculture: This stream covers eligible agricultural occupations and activities.
• Global Talent Stream: This stream is designed for certain specialized or in-demand workers and has separate eligibility and processing requirements.
• Permanent resident or dual-intent stream: Employers may apply to support a skilled worker’s permanent residence, including cases where no temporary work permit is requested through the LMIA.
• Academic, caregiver and Quebec processes: These positions or applications may have specialized forms, requirements or federal-provincial procedures. They are not all separate wage streams.

Employers should select the correct stream or process before preparing recruitment evidence because the advertising, wage, duration and document requirements can differ.

Current LMIA Fee

The LMIA processing fee is generally $1,000 for each position requested.

The fee must be paid by the employer and cannot be charged to or recovered from the temporary foreign worker.

The fee is generally not refunded if an application is withdrawn, cancelled or refused. Refunds are generally limited to cases where the fee was collected in error. Some specified caregiver and primary-agriculture applications are exempt from the processing fee.

An incomplete application is not processed and the processing fee is not charged.

Wage Requirements For LMIA Applications

Employers must offer wages that meet the applicable Temporary Foreign Worker Program requirements.

The prevailing wage is generally the highest applicable amount among the median wage shown on Job Bank for the occupation and location, the wage range paid to comparable employees at the same work location with similar skills and experience, and any other reliable labour-market information required for the applicable process.

Employers must review the prevailing wage annually using updated Job Bank wage information and adjust the worker’s wage where required.

Guaranteed wages are used for assessment, while overtime, tips, benefits, bonuses, commissions and other forms of compensation generally do not replace the required guaranteed wage.

Offering a wage below the applicable prevailing wage can result in a negative LMIA.

The high-wage and low-wage classification is determined using the current provincial or territorial hourly wage threshold published by the federal government. For LMIAs received on or after July 17, 2026, the published thresholds include $37.50 in Alberta, $38.40 in British Columbia, $36.92 in Ontario and $36.00 in Quebec.

Because the wage thresholds and Job Bank wage data can change, employers should check the official tables immediately before submitting an application.

Recruitment Requirements

Employers must normally show that they made reasonable efforts to recruit or train Canadians and permanent residents before applying for an LMIA.

Recruitment evidence can include job advertisements, information about where and when the advertisements appeared, applications received, interviews conducted and explanations for why candidates were not hired.

High-wage applications generally require advertising on Job Bank and at least two additional recruitment activities that are appropriate for the occupation. One recruitment activity must generally be national in scope and accessible to job seekers across Canada.

High-wage applications also generally require a transition plan describing measures to recruit, retain and train Canadians and permanent residents and reduce reliance on the Temporary Foreign Worker Program. Limited exemptions apply, including for certain primary-agriculture and caregiver or healthcare positions.

Advertisements and recruitment activities must normally run for at least four consecutive weeks within the three months before the LMIA application, although stream-specific variations can apply.

Low-wage applications also have specific advertising, transition and recruitment requirements, including measures designed to prioritize Canadians and permanent residents and recruitment efforts directed at underrepresented groups in the labour market.

Low-Wage LMIA Restrictions

Low-wage applications face additional restrictions based on the employer’s workforce, the work location and the local unemployment rate.

As a general rule, employers are subject to a 10 percent cap on temporary foreign workers in low-wage positions at a specific work location.

A 20 percent cap applies to certain sectors, including construction, food manufacturing, hospitals, nursing and residential care facilities, and specified in-home caregiver positions.

Some positions have no cap, including certain primary-agriculture jobs, certain caregiving positions in healthcare institutions, positions supporting permanent residence only and eligible short-duration positions.

For employers with fewer than 10 employees at a work location, the cap calculation uses a workforce size of 10 employees. This generally allows a maximum of one low-wage temporary foreign worker under a 10 percent cap or two under a 20 percent cap. Part-time employees and certain vacant or approved positions are counted according to the official cap-calculation rules.

Eligible employers located outside census metropolitan areas in participating provinces or territories may qualify for temporary rural measures from April 1, 2026 to March 31, 2027. Depending on the province or territory and the application, the measures may allow a 15 percent cap instead of the usual 10 percent cap or allow an employer to retain its existing proportion of low-wage temporary foreign workers.

Participation and implementation dates vary by province or territory. As of October 26, 2026, Alberta is not participating in these rural measures. The measures do not remove the other requirements of the Temporary Foreign Worker Program.

Employers generally may request a maximum employment duration of one year for low-wage positions, although primary-agriculture and other specialized processes can have different duration rules.

Unemployment-Based Refusal To Process

Some low-wage LMIA applications will not be processed when the work location is in a census metropolitan area with an unemployment rate of 6 percent or higher.

The rule generally applies where the offered wage is below the applicable provincial or territorial hourly wage threshold.

There are exemptions for certain occupations and sectors, including primary agriculture, construction, food manufacturing, hospitals, nursing and residential care facilities, and specified in-home caregiver positions.

The unemployment-rate table is updated every three months.

For applications submitted from October 9, 2026 through January 7, 2027, employers must use the unemployment-rate table currently published by Employment and Social Development Canada.

The next scheduled update to that table is January 8, 2027.

Employer Obligations After A Positive LMIA

A positive LMIA does not end the employer’s responsibilities.

The employer must follow the wages, occupation, work location, working conditions and other commitments in the LMIA decision letter and its annexes.

Employers must provide a signed employment agreement in English or French on or before the worker’s first day of work and must not charge the worker recruitment fees.

Depending on the stream and position, the employer may have to pay round-trip transportation, provide or arrange suitable and affordable housing, obtain private health insurance during any period before provincial coverage begins and provide workplace safety coverage.

Transportation costs and required health insurance costs cannot be recovered from the temporary foreign worker.

Employers must also comply with federal, provincial and territorial employment laws.

LMIA Inspections And Penalties

Employment and Social Development Canada can inspect employers through random selection, suspected non-compliance, previous non-compliance or other circumstances permitted by the Immigration and Refugee Protection Regulations.

Employers must keep relevant records for six years beginning on the first day of the employment period for which the work permit was issued.

Inspectors may review payroll records, employment agreements, job duties, working conditions, recruitment evidence and compliance with the LMIA decision letter.

Non-compliant employers may receive a warning, administrative monetary penalties, a temporary or permanent ban, publication on the federal non-compliant employer list, or suspension or revocation of previously issued LMIAs.

Administrative monetary penalties can reach up to $100,000 per violation, subject to a maximum of $1 million in a year.

Current LMIA Processing Times

Federal processing times are monthly averages and begin when Service Canada receives a complete application with the required documents, signed forms and applicable payment.

For applications processed in September 2026, the published averages were 9 business days for the Global Talent Stream, 22 for the agricultural stream, 7 for the Seasonal Agricultural Worker Program, 98 for the high-wage stream, 82 for the low-wage stream and 79 for the permanent resident stream.

These averages can change significantly and do not include the time needed to complete mandatory recruitment advertising before submission. Depending on the stream, advertising requirements may run from 14 days to eight weeks.

Employers can generally apply up to six months before the expected job start date.

An incomplete application is not processed and the processing fee is not charged.

How The LMIA Process Works

1. Confirm whether the position needs an LMIA or qualifies for an exemption.
2. Select the correct LMIA stream or specialized process.
3. Confirm the occupation, NOC, work location, prevailing wage and applicable wage threshold.
4. Complete the required recruitment and advertising activities.
5. Prepare any required transition plan and gather business-legitimacy, recruitment, wage and employment documents.
6. Submit the application through LMIA Online where available and pay the required fee.
7. Respond to any Service Canada requests for additional information.
8. Provide the positive LMIA decision letter and employment details to the worker.
9. Have the worker apply to IRCC for an employer-specific work permit.

Employers hiring in British Columbia, Manitoba, Saskatchewan or Nova Scotia may also need to include a valid provincial employer registration certificate or proof of exemption.

For positions in Quebec lasting more than 30 consecutive days, the employer generally submits the application to both Service Canada and Quebec’s Ministère de l’Immigration, de la Francisation et de l’Intégration.

What Workers Should Know

A foreign worker should receive a copy of the positive LMIA decision letter, the employment details and a written employment agreement before applying for the work permit.

The worker must satisfy IRCC’s work permit requirements and may need a medical examination, police certificate, biometrics or other documents depending on the circumstances.

An LMIA does not guarantee work permit approval, entry to Canada or permanent residence.

Workers should not pay an employer’s LMIA processing fee or recruitment fees.

A worker who changes employers generally needs authorization to work for the new employer, which usually means applying for a new employer-specific work permit and obtaining a new LMIA unless an exemption applies.

Bottom Line

Canada continues to use the LMIA system to assess whether employers genuinely need temporary foreign workers and whether hiring them is consistent with labour-market protections.

The most important current issues are the generally $1,000 employer-paid fee, prevailing-wage rules, mandatory recruitment, high-wage transition plans, low-wage caps, the one-year general low-wage duration limit, unemployment-based refusal-to-process rules and continuing employer compliance obligations.

Because stream requirements and local labour-market measures can change, employers and workers should verify the official federal and provincial rules immediately before submitting an application.

Frequently Asked Questions

Fact-Checked: Reviewed current Employment and Social Development Canada and IRCC LMIA, Temporary Foreign Worker Program, refusal-to-process, compliance and processing-time guidance available on October 26, 2026.

Disclaimer: This article is general information and does not replace advice from a qualified Canadian immigration professional.