The Department of Labor is postponing changes to the way it will calculate prevailing wages for the H-1B, H-1B1, E-3 and PERM by an additional 18 months.   This new proposal would delay the effective and transition dates by an additional 18 months until November 14, 2022 and January 1, 2023, respectively.

For context, in October 2020, the DOL implemented new formulas for calculating prevailing wages that resulted in incredibly high prevailing wages for purposes of the Labor Condition Application and prevailing wage determinations for the PERM. These new formulas were successfully challenged in court and their use was suspended.  The DOL returned to its previous formulas for calculating the prevailing wages. 

The DOL has explained that it needs further time to research the impact of the new formulas, engage with stakeholders, and train its personnel on the new process for calculating prevailing wages.  The DOL will be taking written public comments on the proposed delayed effective and transition dates until April 21, 2021.

This alert is for informational purposes only. Please contact us if you would like to discuss these developments further.