Over on the firm’s main web site, we’ve added a new resource that explains the prevailing wage process and some of the most common questions that arise. The prevailing wage is used as a measure of the minimum allowable wage to be paid by employers seeking to employ a foreign national in certain nonimmigrant classifications (H-1B, H-2B, H-1B1, E-3), or sponsor a foreign national for permanent residence through the labor certification process (PERM).
Posts Tagged ‘iCert’
Do You Have Questions About the Prevailing Wage Process?
Wednesday, May 5th, 2010New Prevailing Wage Process Implemented by the Department of Labor
Monday, January 11th, 2010
The Department of Labor (DOL) has nationalized the process for issuance of prevailing wage determinations used in a variety of immigration applications including PERM, H-1B, H-1B1 (Chile/Singapore), E-3 (Australia), and H-2B. Beginning January 1, 2010, employers must now apply for prevailing wage determinations to the DOL rather than the state workforce agencies (SWAs). DOL has indicated that from January 1, 2010 through January 20, 2010 prevailing wage requests must be submitted by mail. After January 20, 2010 DOL expects that submissions will be able to be made through the iCERT portal.
DOL issued prevailing wage determinations are a mandatory requirement for PERM applications. The agency has advised employers to submit prevailing wage requests at least 60 days before beginning recruitment or filing an application for labor certification. Likewise, DOL has indicated that prevailing wage requests using independent wage sources could have lengthier processing times. As we have reported, the introduction of the iCERT system for preparation of LCAs has significantly lengthened preparation time due to technical glitches in the system. It is therefore critical for employers to be aware of these delays, especially if they are filing PERM applications for H-1B nonimmigrant workers who are reaching the end of their fifth year of status and who wish to extend that status beyond the six-year maximum under the provisions of AC21.
In addition to processing delays, it remains to be seen if the validity periods for prevailing wage determinations issued by the DOL will be shorter than those that were issued by local SWAs.
Although prevailing wage determinations from the DOL are not required for H-1B cases, they are preferred by some employers as they provide important safe harbors. Given the expected delays in DOL processing times for issuance of prevailing wage determinations it is critical that employers identify and begin preparing cap-subject cases for the Fiscal Year 2011 as soon as possible.
While DOL policy guidance states that there will be no changes in the way prevailing wages are determined, employers should note that the national office may take a different approach from local SWAs in determining how occupational categories and wage levels are assigned. DOL has indicated that the national office will entertain requests for redetermination. Redeterminations will be handled by the Office of Foreign Labor Certification. Requests to reconsider redeterminations can be submitted to the Board of Alien Labor Certification Appeals (BALCA). It remains to be seen how receptive the national office will be to requests to reconsider prevailing wage determinations, including the assignment of occupational categories and wage levels.
Say Goodbye to the Days of Quick Turn-Around H-1Bs
Monday, June 22nd, 2009This is a reminder from Klasko, Rulon, Stock & Seltzer that the days of the instant labor condition application (LCA) are over. Effective June 30, 2009, the new U.S. Department of Labor (DOL) iCert system for LCAs will completely replace the previous web-based system, eliminating same day LCA approvals. Instead, under the new system, DOL will use up to seven business days (or more) to certify the LCA, and early experience with the system indicates that DOL is taking all seven business days.
In a recent meeting of the American Immigration Lawyer’s Association (AILA), a top-level DOL official indicated that, if non-obvious errors or other problems with the LCA are detected, the decision on the LCA could extend beyond the seven days. At this meeting, Klasko Partner, Bill Stock urged the DOL to adhere to their own regulations and either deny or certify LCAs within the seven day period allotted by the regulations. However, DOL officials insisted that they could not currently provide processing times for LCAs that require further review.
What does this mean for employers? Well, this system change means that it will no longer be possible to prepare and file H-1B applications on short notice. Every employer filing an H-1B petition with the United States Citizenship and Immigration Service (“USCIS”) must first obtain an approved LCA from the DOL. In the LCA the employer is required to attest to paying the higher of the actual or prevailing wage, to providing working conditions that will not adversely affect the working conditions of workers similarly employed, that there is no strike or lockout in the course of a labor dispute in the occupational classification at the place of employment, that the employer has provided appropriate notice to bargaining representatives or employees and that the employer has completed and made available a file for public examination. A DOL approved LCA is a precondition to filing an H-1B petition with the USCIS, and as such is integral to obtaining H-1B status for employees.
In the era of iCert, advance planning will be a must. Employers should monitor the expiration dates of H-1B employees and allow sufficient time for the preparation and filing of H-1B extensions and amendments. This delay in filing will also impact the usefulness of H-1B portability, since an individual in H-1B status can only be authorized to work for the new employer upon the filing of the new petition, which requires a certified LCA. Under the new system, certification will add at least a week to ten days to that process. Unfortunately, employees who fall victim to the economy will also feel the impact of the delayed LCA certification timing, as it will delay their ability to file a new H-1B petition once they have obtained new employment.
Employers and employees can also expect that in the first weeks of use, there will continue to be technical glitches in the software. The delay in implementation of the iCert program reflects this fact.
If you have further questions on how iCert impacts your workforce, please schedule a consultation or contact one of the attorneys for more information.



