The DOL recently released FY2015 3rd Quarter data from its PERM program and the number of denials increased by over 100% when compared to 2nd Quarter. The stats revealed that denials have risen to over 11% of all applications and 22% of applications are currently under audit.
A NH painting contractor was charged in October 2012 for violations of the Fair Standards Labor Act’s (FLSA) minimum wage, overtime and record keeping requirements. In 2014, the Department of Labor (DOL) obtained a preliminary injunction preventing the contractor from intimidating, retaliating or discriminating again current or former employees involved in the investigation and lawsuit. Specifically, the contractor threatened to call immigration if the employees cooperated with the DOL. A consent judgment was issued in which the contractor was ordered to pay $427,000 to 157 employees who were denied payment of overtime and/or minimum wage. In addition, they were ordered to pay civil money penalties to the DOL, maintain accurate records, provide employees and manager with training on FLSA’s requirements and prohibits them from withholding payment of back wages or damages, demanding, keeping or accepting back wages or damages to be paid or failing to cooperate with the DOL. The lesson to be learned here is to make sure that you comply with all laws when it comes to your foreign and U.S. employees, never threaten your employees into doing anything and to keep and maintain accurate records.
The DOL has released updated PERM stats which reveal some interesting tidbits. The number of PERM applications received this year over the same time period in FY 2014 is up over 25%. Of cases where a decision has been reached, less than 10% have been denied. Over 30% of cases are currently in audit review and almost 10% of cases are pending an appeal. Although it seems like everyone claims to have been filed under EB2, almost 50% of cases were filed under EB3 standards.
On August 25, 2014, the Office of Foreign Labor Certification (OFLC) implemented new password requirements for enhanced security. As such, on or before November 23, 2014, all Permanent Case Management System (PERM) users will be required to change their existing passwords. In addition, PERM users will be required to change their passwords every 90 days. The PERM system will send PERM users’ reminder emails as these dates approach. Please refer to the External PERM Quick Start Guide which can found via the following link for instructions on how to properly change an existing PERM password: http://www.foreignlaborcert.doleta.gov/pdf/PERM_QstartGuide_ExAcct_Mgmt_LB.pdf. A word of warning, if an existing PERM password is not changed with the 90 day period, the PERM user will need to re-activate their account by identifying themselves, selecting a secret question and providing the correct answer.
And they say ignorance and poor advice doesn’t pay off ! In this case it sure did. A Federal Judge ruled in favor of an IT Staffing co. and stated that they did not willfully violate the DOL’s posting regulations when they failed to post at 3rd party sites where they placed H-1b workers because they had tried to post at those sites and personnel at the company thought that trying really hard was sufficient. The ruling does NOT stand for the proposition that postings are not required at the actual worksites as the Court acknowledged that is the law. I also think it would be a mistake to think that the ruling stands for the proposition that if you try really hard that you are compliant. Rather, I think this ruling should be viewed in the context of an over-reaching DOL trying to claim bad acts i.e. willful acts when the facts supported negligence or ignorance. As any prosecutor will tell you, don’t over charge or you risk ending up with a not guilty verdict. Did the company clearly violate the DOL regulations by not posting at 3rd party worksites where their H-1b workers were placed ? yes. But, did they deserve a fine of almost $200,000 ? The Court obviously thought no and found a way to serve justice. I also think the facts in this case cry out for a legislative fix. What is the proper course of action when a customer says that, “you can’t place that notice on our premises “? In this case, the company had documented emails and letters to their customers requesting them to post the required notices and yet they were met with refusal after refusal. Many of their customers added to their level of ignorance by telling them that they did not have to post at the work-site location. Surely, the brilliant legislators in Washington can come up with a solution to this problem. Anyone say national registry of postings ?
Over the past several weeks, the DOL has been denying PERM cases for IT professionals which allow for engineering degrees as an educational requirement or alternative. This new policy has been widely reported by AILA attorneys and others. The explanation by the DOL is that an engineering degree is not the type of degree that would normally be acceptable for an IT position. For those of you who are currently holding IT positions and have an engineering degree, you must have just gotten lucky in getting your job. Once again, the DOL has demonstrated its uncanny ability to break from the practices of the real world. What is ironic is that the DOL currently has an open position for an IT professional and amazingly it specifically states that an engineering degree is an acceptable educational background. In only approximately 15 minutes, we were able to uncover no less than a half-dozen other Federal government agencies hiring IT professionals and stating that an engineering degree was an acceptable educational background. We are hopeful that DOL HQ will intervene and provide some additional training to its Certifying Office in Atlanta and correct this policy. In the interim, employers are being forced to file BALCA appeals to protect priority dates, insure the ability to extent H-1b’s beyond the 6 year limit, or avoid new costly recruitment campaigns. Even if this clearly erroneous policy position is quickly corrected, a significant amount of unnecessary cost will have been expended by employers and the delay created and the cloud of denial will have affected many foreign nationals.