PERM Labor Certification Can Still Proceed After H1B Lottery Rejection in 2026

A common concern among foreign workers and their employers is whether a failed H1B lottery selection blocks the path to a green card. According to Murthy Law, the answer is no — PERM labor certification is a completely separate process from the H1B visa and can proceed independently of lottery results. The PERM (Program Electronic Review Management) process is the first step in the employment-based green card process, including EB-3 classification. It is administered by the Department of Labor and requires employers to demonstrate that no qualified U.S. workers are available for the position before sponsoring a foreign national for permanent residence. Because PERM is a DOL process tied to permanent immigration rather than a temporary work visa, H1B lottery selection has no bearing on eligibility. Employers can initiate and complete the PERM process for an employee regardless of that employee's current visa status or H1B lottery outcome. This is particularly relevant for workers on other valid nonimmigrant statuses such as F-1 OPT, L-1, or O-1 visas, who may be ineligible or not selected for H1B but are still eligible for employer-sponsored green card processing. Starting PERM early can help protect priority dates and reduce overall wait times. EB-3 applicants and their employers are encouraged to consult with an immigration attorney to evaluate all available pathways, as the PERM and green card process can take years — making early action especially important given current backlogs.