Understanding PERM Successor Interest Doctrine

Corporate mergers and acquisitions create PERM successor interest challenges when employers sponsor foreign workers for green cards. When company ownership changes through merger, acquisition, or restructuring, the pending or approved labor certification could become invalid unless the new entity qualifies as successor in interest under USCIS regulations.

The successor in interest doctrine allows new employers to continue PERM sponsorship after corporate changes. This prevents workers from losing years of green card progress due to business transactions beyond their control. However, qualifying as successor requires meeting specific criteria and providing extensive documentation proving the new entity legitimately assumed predecessor obligations.

PERM merger requirements apply regardless of when ownership transfer occurs. Whether merger happens before filing, during recruitment, after PERM approval, or during I-140 processing, the successor must demonstrate continuity. The March 2025 USCIS Policy Update refined guidance incorporating previous memoranda including the August 2009 Neufeld Memo establishing current standards.

Beyond Border helps employers navigate successor in interest documentation ensuring corporate restructuring doesn't derail employee green card applications through proper evidence compilation.

Three Essential Successor Factors

Successor in interest USCIS analysis examines three critical factors determining whether new employer can continue predecessor's PERM. First, the job opportunity must remain identical. This means same position title, duties, requirements, location, and wage as original labor certification specified. Standard salary increases over time don't affect successor claims, but material changes to job description or location invalidate continuity.

Second, the successor must fully document ownership transfer and assumption of predecessor assets and liabilities. The new entity doesn't need to acquire every predecessor asset or assume unrelated liabilities. Focus centers on immigration-related obligations and business interests connected to the sponsored position. If merger involves only specific business units, successor relationship can exist for positions within transferred units even without acquiring entire company.

Third, the successor must prove ability to pay offered wage from the original PERM filing date through present. This requires financial documentation from both predecessor and successor companies. The ability to pay burden continues throughout green card processing, so successors must maintain financial capacity demonstrating they can compensate the employee at promised salary levels.

Beyond Border evaluates corporate transactions against these three factors identifying potential successor qualification issues before they cause PERM denials or I-140 problems.

Compiling Successor in Interest Evidence

Successor in interest evidence documentation requirements are extensive. Legal agreements evidencing merger, acquisition, or reorganization form the foundation. These include purchase agreements, merger contracts, asset transfer documents, or stock purchase agreements showing ownership changed from predecessor to successor. Contracts should clearly identify what assets, liabilities, and obligations transferred.

Audited financial statements for both predecessor and successor companies for the year ownership transfer occurred provide critical ability to pay evidence. If audited statements aren't available, tax returns, annual reports, or other financial documents suffice. Documentation must cover periods before and after transfer showing financial continuity and capacity to pay offered wages.

PERM restructure documentation should include SEC Form 10-K filings if publicly traded companies are involved. Transfer documents for real property, business licenses, intellectual property, contracts, and other assets demonstrate operational continuity. Newspaper articles or trade publication coverage announcing merger or acquisition provide independent verification of corporate changes.

Beyond Border assembles comprehensive successor evidence packages addressing each regulatory requirement while anticipating USCIS scrutiny points that trigger requests for additional documentation.

Timing Considerations for Corporate Changes

PERM corporate acquisition timing significantly affects documentation strategies. If merger occurs before PERM filing, the successor company must conduct all recruitment under its own name and obtain prevailing wage determinations as the petitioner. However, evidence showing predecessor conducted preliminary recruitment can sometimes be leveraged with proper successor documentation.

When acquisition happens after PERM filing but before approval, employers cannot request updates to pending applications with DOL. The Form ETA-9089 remains unchanged. However, employers should prepare successor documentation anticipating potential audit triggers. If DOL audits the case, comprehensive evidence proving successor relationship becomes critical to avoiding denial based on entity mismatch between recruitment and filing.

Mergers occurring after PERM certification but before I-140 filing require I-140 successor petition amendments. USCIS regulations mandate new or amended I-140 petitions demonstrating valid successor relationships. These amendments must include all three-factor evidence plus copies of approved PERM showing predecessor as original petitioner.

Beyond Border develops timeline-specific strategies addressing unique challenges corporate changes create at different green card process stages from recruitment through adjustment.

Common Successor Documentation Mistakes

Many employers submit insufficient PERM merger requirements documentation leading to denials or significant delays. First common error involves assuming name changes alone establish successor relationships. Simply changing corporate name while maintaining same federal employer identification number requires minimal documentation. However, actual ownership transfers demand comprehensive evidence packages regardless of name continuity.

Second mistake centers on incomplete asset transfer documentation. Providing merger agreement without supporting financial statements, asset schedules, or liability assumptions creates gaps. USCIS officers need complete pictures showing which specific assets and obligations transferred, not just high-level transaction summaries.

Third error involves inadequate ability to pay evidence. Successors must prove financial capacity from original PERM filing date, not just from acquisition forward. This requires predecessor financial documents that new owners may not immediately access. Delays obtaining predecessor records create processing complications when filing I-140 amendments.

Beyond Border identifies documentation gaps early in corporate transition processes ensuring complete evidence packages avoid common successor in interest pitfalls causing application delays or denials.‍

Frequently Asked Questions

What happens to PERM if company gets acquired? PERM remains valid if acquiring company qualifies as successor in interest by assuming immigration obligations, maintaining same job opportunity, and proving ability to pay from original filing date through comprehensive documentation.

When must successor in interest be proven? Successor status must be proven when filing I-140 petition with USCIS after corporate changes regardless of whether merger occurred before, during, or after PERM certification.

Does successor need to acquire all predecessor assets? No, successor need only acquire assets and liabilities related to the sponsored position and essential business operations, not every predecessor asset or unrelated obligation.

Can PERM be refiled under new company name? Yes, but refiling restarts entire labor certification process including new prevailing wage determination and recruitment, potentially adding 12 to 18 months versus proving successor relationship.

What documents prove successor in interest? Purchase agreements, merger contracts, financial statements, SEC filings, asset transfer documents, and media coverage documenting corporate changes prove successor relationships for PERM cases.