Update on Prevailing Wage Determinations

By: The Chander Law Firm

During a stakeholder meeting on September 9, 2011, the Department of Labor provided updates regarding delays in the issuance prevailing wage determinations. Processing of prevailing wage determinations has been stalled since June 2011.

The Department of Labor reported that it has assembled a team to work on the backlog of PERM (labor certification) prevailing wage determinations on a first in first out basis.  Adjudication of prevailing wage determination requests utilizing alternative wages or other "complicated issues" will be delayed. 

Prevailing wage determinations for H-1B and PERM applications have been delayed indefinitely since June 15, 2011, when a U.S. district court invalidated a final rule issued by the Department of Labor on January 19, 2011 revising the methodology for calculating prevailing wages paid to H-2B workers. As a result, the Department of Labor ceased processing of all prevailing wage determinations other than 3,500 H-2B prevailing wages determinations filed under the January 19 regulations.

The decision to stop adjudicating PERM and H-1B prevailing wage determinations has detrimentally affected many United States companies and foreign nationals working in the United States. Prevailing wage determinations are required in order for employers to sponsor foreign nationals for lawful permanent resident status. Delays in the processing of prevailing wage determinations may prevent companies from being able to extend the nonimmigrant status of H-1B employees while the green card process is pending. 

Some employers have sought to seek extraordinary measures to force prevailing wage processing to move forward including filing writs of mandamus.  The Department of Labor's updates regarding prevailing wage determinations occurred in part due to legal actions filed.



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