Understanding Prevailing Wage Determinations

PERM prevailing wage determinations from the National Prevailing Wage Center establish minimum compensation for sponsored positions. The DOL evaluates job duties, requirements, supervision level, and geographic location assigning appropriate wage levels. Many employers receive PERM prevailing wage higher than expected results exceeding budgeted amounts or current beneficiary salaries.

The Department of Labor uses Occupational Employment Statistics data and O*NET classifications determining prevailing wages. Four wage levels exist ranging from Level I entry positions requiring close supervision to Level IV fully competent workers performing complex duties with minimal oversight. Job description wording significantly impacts level assignments. Seemingly minor phrasing differences shift determinations by $20,000 to $40,000 annually.

PWD validity lasts 365 days from issuance. Employers must file PERM within this window using the issued PWD. Expired determinations require new filings with potentially different results. Current processing times approach 6 to 8 months for PWD requests creating timeline planning challenges when determinations prove unexpectedly high.

Beyond Border reviews PWD results immediately upon receipt analyzing whether determinations accurately reflect positions and identifying revision or reconsideration options.

Reconsideration Request Strategies

PERM wage determination reconsideration allows challenging incorrect PWD assignments. Common grounds include wrong job duty analysis, inappropriate wage level assignment, geographic area errors, or wrong SOC code assignment. Reconsideration requests must articulate specific errors with supporting documentation rather than simply disagreeing with wage amounts.

Preparation requires careful PWD review. Compare issued determination against submitted ETA-9141 application. Verify NPWC correctly interpreted job duties, requirements, and supervision levels. Check assigned wage level matches actual position complexity. Confirm geographic area matches worksite location. Any discrepancies support reconsideration requests.

Supporting documentation strengthens requests. Provide industry salary surveys showing typical compensation for similar positions. Submit job postings from competitors offering comparable roles at lower wage levels. Include organizational charts demonstrating supervision structures contradicting NPWC's interpretation. Offer detailed duty explanations clarifying misunderstood responsibilities.

Beyond Border prepares reconsideration requests with comprehensive supporting documentation maximizing approval chances while preserving PWD validity periods for subsequent PERM filing.

Job Description Revision Approaches

PERM wage level adjustment through job description modification offers alternatives to reconsideration. Analyze what elements drove high wage level assignments. Level IV determinations typically require complex problem-solving, independent judgment, minimal supervision, and specialized expertise. Removing these indicators can lower levels while maintaining accurate position descriptions.

Focus on supervision requirements. Adding supervision oversight often reduces wage levels. State the position reports to senior staff receiving regular guidance on complex matters. Describe oversight processes including review procedures and approval requirements. These additions suggest less independent responsibility potentially lowering PERM prevailing wage levels assignments.

Simplify duty descriptions without changing actual job content. Replace "independently develops innovative solutions to complex technical challenges" with "develops solutions to technical problems under senior engineer guidance." Both describe similar work but convey different autonomy levels. Careful wording maintains accuracy while potentially reducing wage level classifications.

Beyond Border analyzes job descriptions identifying modification opportunities that lower wage levels without compromising position accuracy or business necessity defenses.

Filing New PWD Requests

PERM PWD revision strategies sometimes require abandoning initial determinations and filing new PWD requests with modified job descriptions. This extends timelines by 6 to 8 months but can result in significantly lower wage levels saving substantial long-term costs. Compare timeline delays against multi-year wage obligation savings determining optimal approaches.

New PWD requests allow comprehensive position restructuring. Revise job titles reflecting less senior positioning. Adjust minimum requirements reducing experience or education demands. Modify duty descriptions emphasizing supervised rather than independent work. Change supervision structures adding oversight layers. These modifications collectively can shift Level IV determinations to Level II or III substantially reducing PERM offered wage requirements.

Coordinate new PWD requests with beneficiary situations. If beneficiary holds H-1B status with remaining validity, timeline extensions prove manageable. If status expires soon, expedited strategies become necessary. Balance PWD optimization against beneficiary status maintenance preventing gaps requiring departure and consular processing.

Beyond Border evaluates tradeoffs between timeline delays and wage savings advising whether new PWD requests serve employer and beneficiary interests optimally.

Proceeding with Higher Wages

Sometimes accepting PERM prevailing wage higher than expected determinations proves optimal despite costs. Calculate total financial impact across green card processing period typically 2 to 4 years. Higher wages create ability to pay obligations but avoiding delays prevents H-1B cap-out situations or beneficiary departures during extended PWD revision periods.

Employers need not immediately increase beneficiary salaries to PWD levels. PERM offered wage requirements mandate paying PWD amount when beneficiary receives green card approval. During PERM processing and I-140 petition stages, lower current salaries remain permissible. However, ability to pay obligations begin at PERM filing requiring demonstrating financial capacity for full offered wage.

Budget planning proves essential. Project wage increases needed upon green card approval. Factor these obligations into financial planning. Document ability to pay through net income, net current assets, or current beneficiary payment meeting PWD levels. Inadequate ability to pay evidence creates I-140 denial risks undermining entire PERM investment.

Beyond Border counsels employers on proceeding with higher PWD amounts including ability to pay planning, timeline optimization, and financial documentation strategies.‍

Frequently Asked Questions

What if prevailing wage is higher than current salary? Employers need not immediately pay prevailing wage to beneficiary but must demonstrate ability to pay that wage from PERM filing through green card approval and must pay it once permanent residence is granted.

Can I challenge prevailing wage determinations? Yes, file reconsideration requests with NPWC citing specific errors in job duty analysis, wage level assignment, geographic area, or SOC code classification with supporting documentation demonstrating mistakes.

How do wage levels affect prevailing wage amounts? Wage levels range from Level I entry positions with close supervision to Level IV fully competent workers with minimal oversight, with each level increase raising prevailing wages by approximately $15,000 to $30,000 annually.

Should I file new PWD request if wage is too high? Filing new PWD requests with revised job descriptions can lower wage levels but extends timelines by 6 to 8 months requiring weighing timeline delays against multi-year wage obligation savings.

When must I pay beneficiary the prevailing wage? Employers must pay beneficiary the prevailing wage when permanent residence is approved though not necessarily during PERM processing, but must demonstrate ability to pay that wage from PERM filing forward.