DOL Final Rule to Increase Prevailing Wages for LCAs and PERMs to be Published January 14, 2021

January 13, 2021

The DOL Final Rule on “Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States” is going to be published on January 14, 2021, in the Federal Register. While the final rule is expected to take effect 60 days following publication, the Biden Administration is likely to further delay implementation of all “midnight legislation” (any rules issued after the election but which have not yet taken effect) on Inauguration Day, January 20.

The final rule will also likely be challenged in courts. As we reported previously, the DOL had issued an interim final rule which took effect immediately last October but was struck down by a District Court judge for violation of the Administrative Procedure Act (APA). Employers were caught by surprise when prevailing wages increased substantially for all H-1B and E-3 labor condition applications (LCA) and PERM labor certifications.

The new regulation provides for a transition period: the new wages, if not challenged, will start to be effective on July 1, 2021 and will be implemented in a phased approach.