H-1B During Company Acquisition or Merger (2026)
M&A activity is one of the most common H-1B disruption events — but it does not automatically invalidate your status. The outcome depends on the deal structure and the successor-in-interest doctrine.
The Successor-in-Interest Doctrine
Under USCIS policy, if a new employer acquires substantially all of the previous employer's assets and business operations, and assumes the rights, duties, and obligations of the H-1B employer including LCA wage obligations, the H-1B petition transfers automatically without refiling. The new employer should retain documentation of the acquisition and its assumption of prior LCA obligations.
When You Must Refile H-1B
A new H-1B petition is required if: (1) the acquisition is an asset purchase only (not a full business transfer), (2) the new employer is a materially different entity, (3) job duties, worksite, or wages change materially, or (4) the prior employer's LCA is not being assumed. In a merger where the surviving entity is a new legal entity, refiling is typically required. When in doubt, refile — an unapproved continuation creates unauthorized employment risk.
PERM and I-140 Survival Through Acquisition
A pending PERM and approved I-140 survive employer acquisition when the successor-in-interest assumes the prior employer's obligations. The new employer continues green card sponsorship under the same priority date. If the I-140 was approved for 180+ days before acquisition, AC21 portability further protects it even if the new entity decides not to continue sponsorship.
Action Items for H-1B Workers in M&A
Immediately after an acquisition: (1) Confirm with HR/legal whether they are filing as successor-in-interest or refiling a new H-1B. (2) Get written confirmation that your LCA wages will be maintained or increased. (3) If your job title, duties, or worksite change materially, request an H-1B amendment. (4) Confirm continuation of PERM/I-140 sponsorship in writing. (5) Keep copies of acquisition documentation, old H-1B approval, and new employer EIN.
Frequently Asked Questions
Does my H-1B automatically transfer to the acquiring company?
Only if the acquisition qualifies under the successor-in-interest doctrine — full assumption of business, assets, and H-1B obligations. For full mergers and stock acquisitions where the legal entity survives, automatic transfer is common. For asset-only acquisitions or carve-outs, a new H-1B petition is typically required.
What if the acquiring company does not want to continue my green card sponsorship?
If your I-140 was approved for 180+ days before the acquisition, the employer's decision to discontinue sponsorship does not erase your priority date. You can join a new employer who will file new PERM/I-140 using your old priority date via AC21 portability.
Does my OPT or STEM OPT transfer automatically in an acquisition?
STEM OPT authorization is tied to the employer listed on your OPT EAD. The new employer entity must be enrolled in E-Verify separately. File a STEM OPT update (I-983 amendment) within 10 days of the change to maintain compliant authorization.
My company was acquired mid-PERM process. Does PERM need to be refiled?
It depends. If the successor-in-interest fully assumes the prior employer's PERM obligations, the PERM can continue under the new employer's EIN via a successor-in-interest filing with DOL. If the acquisition does not qualify, the PERM must be refiled — resetting the priority date unless you can port an existing approved I-140.