DOL Prevailing Wage Increases Set Aside by District Court

On Tuesday, December 1st, as previously predicted, a district court for Northern California issued an order setting aside an interim final rule (IFR) issued by the Department of Labor (DOL) in October, which had abruptly increased the prevailing wage rates for H-1B, H-1B1, and E-3 workers, as well as the required wages for the PERM-based green card process. The court order also set aside the companion IFR published by the Department of Homeland Security (DHS), which would have placed new restrictions on the H-1B program.

Government prevailing wage data, which had been inflated by as much as 60% under the IFR, was replaced over the weekend with updated figures reflecting the DOL’s previous wage methodology. While it is possible that an appellate court will reverse the district court’s decision, employers and attorneys can begin submitting new Labor Condition Applications (LCAs) based on the “restored” prevailing wage figures starting today. The DOL will begin processing PERM prevailing wage determinations based on the updated figures starting next Tuesday, December 15th.

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