Four Level Wage PERM Provisions For Prevailing Wages

All businesses need to be aware of the changes to work permits under PERM on March 28, 2005. An immigration lawyer can assure compliance with the new regulations.

Question: Why did the prevailing wage two tier skill level structure change to four levels?

Answer: Congress enacted the Consolidated Appropriations Act of 2005 amending the Immigration and Naturalization Act (Section 212(p), 8 U.S.C. 1182(p)) to provide:

"Where the Secretary of Labor uses, or makes available to employers, a governmental survey to determine the prevailing wage, such survey shall provide at least 4 levels of wages commensurate with experience, education, and the level of supervision. Where an existing government survey has only 2 levels, 2 intermediate levels may be created by dividing by 3, the difference between the two levels offered, adding the quotient thus obtained to the first level and subtracting that quotient from the second level."

Question: When does the four wage level provision go into effect?

Answer: The four wage level provision goes into effect on March 8, 2005, as does the requirement to pay 100% of the prevailing wage.

Question: Is the employer permitted to use a valid prevailing wage determination issued prior to March 8, 2005?

Answer: Yes, but only if the wage source used to make the determination was one other than the wage component of the Occupational Employment Statistics (OES), i.e., an employer-provided survey, a McNamara-O'Hara Service Contract Act or Davis-Bacon Act wage, or a Collective Bargaining Agreement wage. To apply under PERM, those employers using the OES must obtain a prevailing wage determination after March 8, 2005.

Return to list of PERM FAQ and Info.