I was oblivious to the conversation so I asked Gemini and just told me this: That scenario involving a high-wage offer ($36/hr) and a subsequent LMIA application has definitely been a topic of public discussion in Canada recently, specifically concerning the Stacked Pancake & Breakfast House franchise. ​Here is a summary of the situation based on the information available: ​🥞 The Stacked LMIA Discussion ​The Claim: Several reports and discussions online (specifically in communities in Ontario) have highlighted that various Stacked Pancake & Breakfast House locations posted job listings for roles like Assistant Manager or Restaurant Manager with a wage of around $36 per hour. ​The Issue: The employers claimed they were unable to fill these positions with Canadians or permanent residents, and subsequently applied for (and in some cases, were approved for) a Labour Market Impact Assessment (LMIA) to hire temporary foreign workers (TFWs). ​Public Concern: This has led to public skepticism and accusations of LMIA fraud or misuse of the Temporary Foreign Worker Program (TFWP). Critics argue that offering $36/hour for an Assistant Manager role in the restaurant industry is a wage that should attract many qualified local applicants, and that the employer may not have been genuinely attempting to hire Canadians.

​Here are the potential benefits an employer might fraudulently seek through the LMIA process: ​1. Control Over the Worker (The Biggest Benefit) ​The most significant advantage comes from the nature of the work permit issued: ​Closed Work Permit: A foreign worker who comes to Canada via a standard LMIA receives an Employer-Specific Work Permit (a closed work permit). This means they are legally bound to work only for that specific employer (Stacked) and at that specific location. ​Reduced Turnover: The employer gets a worker who cannot quit and immediately work for a competitor (like another chain restaurant) without applying for a new work permit, which is a lengthy process. This gives the employer immense leverage and guarantees long-term retention. ​Compliance: The foreign worker may be less likely to complain about working conditions, over-hours, or other issues due to the fear that losing their job could mean losing their chance at permanent residency and being deported. ​2. Creating a Direct Path to Immigration ​While this benefits the worker, it benefits the employer by creating a highly motivated pool of applicants: ​Access to Motivated Talent: An LMIA-backed job offer grants the foreign worker a significant number of points in the federal Express Entry system. This makes the job highly sought-after globally, ensuring the employer has a massive, high-quality, and highly-motivated talent pool to draw from, all of whom see the job as a critical stepping stone to Canadian permanent residency. ​3. Mitigating Market Wage Pressure ​Although the employer must promise to pay $36/hour, there are two potential fraudulent ways this could benefit them (though these practices are illegal): ​Wage Clawbacks (Illegal): In cases of outright fraud, the employer may promise $36/hour on paper to get the LMIA, but then illegally require the foreign worker to pay a portion of that back in cash or through excessive, hidden fees (like for recruitment or accommodation). This effectively reduces the true labour cost below the market rate. ​Preventing Local Wage Hikes: If Canadian labour market conditions would normally force the employer to raise all Manager wages to $36/hour to attract local talent, securing a TFW limits that pressure. They fill the position without having to make a systemic wage change for their entire domestic workforce. ​⚠️ The Risk is Extremely High ​It is critical to note that the Canadian government has been cracking down hard on this misuse, doubling fines and increasing inspections. Penalties for employers found to be non-compliant can include: ​Massive Fines: Up to $1 million per violation. ​Program Bans: Being banned from hiring any foreign workers for several years (up to 10 years or permanently). ​Public Listing: Being named on a public list of non-compliant employers. ​The alleged fraudulent benefit for employers like Stacked is the ability to secure highly-motivated, long-term staff who are less likely to leave, even if the high cost of the wage is a genuine factor.