The bottom line is that as soon as you know that you are going to go with one company rather than another, let the other company know that you are not interested as soon as possible so that they timely make the appropriate steps to minimize the consequences. Hopefully, you will not allow yourself to even get into this type of situation in the first place. This means that it may be denied as well. Notice that an H-1B worker whose application in still in the labor certification stage is NOT eligible for an extension under this section. Yes it does.
Current law requires that a worker wait until the petition is approved before changing employers.
The DOL is involved in the process because the federal government wants to ensure that if foreign workers are being hired it is not being done in a manner that underpays them. This protects the foreign workers from being abused, but the main purpose of this process is to protect the jobs of American workers and to make sure that wages are not artificially depressed. When a U.S. corporation hires an H-1B worker it will have to pay that worker the prevailing wage as determined by the DOL and its wage surveys. The LCA is the form where the prevailing wage is set forth and the U.S. company promises to pay at least the prevailing wage. Once the company completes and signs this LCA, it must be sent to one of the 10 regional DOL offices for certification.