DOL Announces Plan to Reduce Prevailing Wages to Prior Amounts in Wake of Two Court Decisions (Dec. 4, 2020)

On December 1, 2020, the U.S. District Court for the Northern District of California issued an order in Chamber of Commerce, et al. v. DHS, et al., No. 20-cv-7331, finding that the U.S. Department of Labor (DOL) failed to show it had good cause to forgo advance notice and comment under the Administrative Procedure Act when it released a new regulation dramatically increases the prevailing wages applicable to H-1B and permanent residence filings. on December 3, 2020, the U.S. District Court for the District of New Jersey issued a preliminary injunction in ITServe Alliance, Inc., et al. v. Scalia, et al., No. 20-cv-14604, applying to the plaintiffs in that case.

Late on December 3, the DOL announced its plan to comply with the court orders, returning the Occupational Employment Statistics (OES) prevailing wage data that was in effect on October 7, 2020:

Implementation Timeframe for Filing LCAs

  • All Form ETA-9035/9035Es submitted using the FLAG system through 5:59AM Eastern Time on December 4, 2020, where the OES survey data is the prevailing wage source, will continue to be processed and issued a final determination without delay.

  • Around 8:30AM Eastern Time on December 4, 2020, the FLAG system will be back online; however, employers and their authorized attorneys or agents will temporarily not be able to submit applications for processing where OES survey data is the prevailing wage source.

  • Beginning around 8:30AM Eastern Time on December 9, 2020, employers and their authorized attorneys or agents will be able to submit new LCAs, Form ETA-9035/9035E, using the OES survey data that was in effect on October 7, 2020.

Implementation Timeframe for Processing Prevailing Wage Determinations

  • OFLC’s National Prevailing Wage Center (NPWC) has temporarily paused processing pending Form ETA-9141s for use in filing LCA and PERM applications. However, employers and their authorized attorneys or agents may continue to file new requests for a prevailing wage determination at any time.

  • Beginning around 8:30AM Eastern Time on December 15, 2020, OFLC’s NPWC will resume processing all pending and new Form ETA-9141s for use in filing LCA and PERM applications, and will use the OES survey data that was in effect on October 7, 2020 for prevailing wage determinations where the OES survey data is the prevailing wage source.

Any employer that desires review of a PWD issued using the 10/8/2020-6/30/2021 wage source year data may make a request for review by the NPWC Director under 20 CFR 656.41 on or before January 4, 2021, and the Director will consider such request timely under 20 CFR 656.41(a).

Goldblum & Pollins continues to monitor developments and will update its posts with new information.