What changes does the PERM make to the prevailing wage determination process?
While a Labor Certification will not be revoked per se if the prevailing wage rises during processing of the case, employers are still required to certify on the new Labor Certification ETA 9089 form that it will pay the new prevailing wage at the time permanent residency is granted or the alien is admitted to take up the certified employment. Under the current law, the standard is that the employer must pay the initial prevailing wage at the time permanent residency is approved. Under PERM, if the prevailing wage increases over the approximate 2 or more year time it takes to obtain a Green Card, the employer must pay the increased wage. Based on the new H-1B/L-1 legislation effective December 8, 2004 (the Consolidated Appropriations Act of 2005), the DOL will no longer permit employers to pay less than 100% of the prevailing wage rate. Up until now, employers could pay 95% or higher. The new law also mandates that the DOL develop a four tier scale for determining prevailing wages (up
