Department of labor announces proposed 18-month delay
The Department of Labor’s Prevailing Wage Rule Delays and Final Status
The Department of Labor (DOL) action to propose a further 18-month delay of the final rule on the Computation of Prevailing Wage Levels was a critical step. This was in a sequence of regulatory changes that followed the rule’s initial publication on January 14, 2021. Consulting an expert, like an immigration attorney, may offer valuable insights into these changes.
Substantive Changes Proposed by the January 2021 Final Rule
The core of the January 14, 2021, final rule was a fundamental change to the methodology used to calculate the four official prevailing wage levels (Level I, II, III, and IV). It relied on the Occupational Employment Statistics (OES) wage survey. This determination directly affects the minimum wages employers must commit to paying workers. Employers in programs such as the PERM labor certification process, and the H-1B, H-1B1, and E-3 non-immigrant visas are impacted.
The rule sought to raise the wage percentiles used for each level. This effectively increased the minimum required wages for employers sponsoring foreign workers. In such cases, involving an attorney specializing in immigration can be crucial for navigating these complexities.
The stated purpose of these significant increases was to better reflect the actual wages earned by U.S. workers. This ensured that the employment of foreign workers did not adversely affect the wages and working conditions of their U.S. counterparts.
The Timeline of Regulatory Back-and-Forth
The rule’s tumultuous history began immediately after its publication:
- Initial 60-Day Delay: Driven by a Presidential directive for a regulatory review, the DOL first finalized a 60-day delay. This pushed the effective date to May 14, 2021. This action was primarily procedural, intended to give the new administration time for a thorough policy review, possibly in consultation with an immigration attorney.
- Proposed and Finalized 18-Month Delay:
- On March 22, 2021, the DOL issued a Notice of Proposed Rulemaking (NPRM) for a further 18-month delay. The proposal aimed to move the effective date to November 14, 2022. The start of the phased-in wage changes (transition dates) would begin on January 1, 2023. Understanding these legal timelines can be simplified with guidance from an attorney who handles immigration matters.
- On June 23, 2021, a federal district court vacated the January 14, 2021, final rule. The court’s decision, in part, determined that the DOL had failed to provide adequate justification for the rule. The DOL officially implemented this vacatur in December 2021. They formally withdrew the final rule and rendered the delay dates moot, as often confirmed by professional immigration attorneys.
The ultimate outcome meant that the prevailing wage computation methodology reverted to the levels and standards that were in place prior to the January 2021 rule. This provided a temporary sense of stability for employers in the high-skilled foreign worker visa programs, as clarified by many immigration attorneys.