If your business depends on hiring foreign workers, it’s time to pay attention.
Canada has introduced several important updates to the Low-Wage Labour Market Impact Assessment (LMIA) requirements, and many employers are discovering these changes only after beginning the application process.
The biggest problem?
Many businesses still assume that the old rules apply.
Unfortunately, that’s no longer the case.
From stricter recruitment requirements to workforce caps and wage reviews, employers must now meet more conditions before hiring temporary foreign workers through the Temporary Foreign Worker Program (TFWP).
Any LMIA application that exceeds the permitted cap may not even be processed.
Let’s break down the most important changes.
The 10% Low-Wage Worker Cap Is Still the Standard
Most employers can hire temporary foreign workers for only 10% of their total workforce in low-wage positions.
However, certain industries qualify for a 20% cap, including:
- Construction
- Food manufacturing
- Hospitals
- Nursing and residential care facilities
These sectors are considered essential and have been given more flexibility under the updated regulations.
Small Businesses Face New Calculation Rules
Here’s an update that many employers may have missed.
As of August 18, 2026, employers with fewer than 10 employees must still complete the low-wage cap calculation section of the LMIA application.
The government automatically calculates the workforce size as 10 employees.
That means businesses can generally hire:
- One low-wage temporary foreign worker under the 10% cap.
- Two low-wage temporary foreign workers under the 20% cap.
For many small businesses, this update changes workforce planning completely.
Recruitment Requirements Are Now More Demanding
Submitting a job advertisement is no longer enough.
Before applying for an LMIA, employers must:
- Advertise the position on Job Bank.
- Target young workers between 15 and 30 years of age.
- Use at least two additional recruitment methods.
Those additional recruitment methods must target different underrepresented groups, including:
- Indigenous people
- Newcomers to Canada
- Persons with disabilities
- Vulnerable youth
- Asylum claimants with valid work permits.
In simple terms, employers must demonstrate that they made genuine efforts to hire Canadians and permanent residents before offering positions to foreign workers.
Job Advertisements Must Remain Active Longer
Another major change involves advertising timelines.
Job advertisements must:
- Be posted within the three months before submitting the LMIA application.
- Remain active for at least eight consecutive weeks.
- Continue running until an LMIA decision is issued.
Many applications are delayed because employers don’t maintain active recruitment throughout the assessment period.
Wage Compliance Is More Important Than Ever
Canadian employers must offer the prevailing wage when hiring temporary foreign workers.
The wage offered must be the higher of:
- The Job Bank median wage.
- The wage paid to current employees performing similar work.
Employers must also review wages annually and update them according to Job Bank requirements. Failure to do so can lead to penalties and restrictions under the Temporary Foreign Worker Program.
The Bottom Line
The 2026 Low-Wage LMIA requirements are more complex than ever.
A single mistake in workforce calculations, recruitment documentation, advertising requirements, or wage compliance can result in delays or a negative LMIA decision.
If you’re planning to hire temporary foreign workers, don’t rely on outdated information.
Review the latest requirements carefully and prepare your application strategically.
At Visa Nexa, we help employers and foreign workers understand changing immigration policies and navigate Canada’s evolving immigration system with confidence.
Need guidance on LMIA applications or employer requirements? Contact Visa Nexa today.
