Refusal to Process LMIA & Low-Wage TFW Cap (Latest Update)

🔔 The Government of Canada has introduced significant changes regarding LMIA processing and the cap on low-wage temporary foreign workers (TFW). Here’s what you need to know if you’re hiring foreign workers:

1️⃣ Refusal to Process LMIA in Areas with High Unemployment (6% or Higher)

LMIA applications will not be processed if:

• Wages are below the minimum threshold for the province/territory, and
• Work location is in a metropolitan area with an unemployment rate of 6% or higher.

📌 Note: These areas with high unemployment rates will be updated regularly. Check the links below before submitting your application!

Median Wage Information: https://www.canada.ca/en/employment-social-development/services/foreign-workers/median-wage.html 

Unemployment Rate Details: https://www.canada.ca/en/employment-social-development/services/foreign-workers/refusal.html 

2️⃣ TFW Cap for Low-Wage Positions

• A 10% cap applies to low-wage positions at a specific work location.
• For some industries/sectors, the cap is increased to 20%, including:
  • Construction (NAICS 23)
  • Food Manufacturing (NAICS 311)
  • Hospitals (NAICS 622)
  • Residential Care (NAICS 623)
  • In-Home Care (Various NOC Codes)

🛠 Small Employers (<10 Employees):

• If your total workforce across Canada is fewer than 10 employees, the TFW cap is as follows:
  • 1 TFW (10% cap): If your industry is subject to the standard 10% cap, you can hire up to 1 TFW.
  • 2 TFWs (20% cap): If your industry qualifies for the increased 20% cap (e.g., construction, food manufacturing, hospitals, residential care, in-home care), you can hire up to 2 TFWs.
• Sectors/Subsectors with a 20% Cap:
  • NAICS 23 – Construction positions
  • NAICS 311 – Food manufacturing positions
  • NAICS 622 – Hospital positions
  • NAICS 623 – Residential care and nursing home positions
  • Specific in-home caregiver roles:
    • NOC 31301 – Registered Nurse or Psychiatric Nurse
    • NOC 32101 – Licensed Practical Nurse
    • NOC 44100 – Home Childcare Provider
    • NOC 44101 – Disability Support Worker, Home Support Worker, Live-in Caregiver, Personal Care Attendant

📌 ESDC and IRCC are evaluating the impact of these measures for future inclusion.

3️⃣ How to Check if You’re Within the Cap?

✅ Complete the “Cap for Low-Wage Positions” section of your LMIA application.
✅ Prepare supporting documents (e.g., payroll records, employee files) to verify the information you provide.

👉 Make sure to review these updates carefully to avoid the risk of your application being rejected!