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Labor Certification

Back to HR Glossary
Table of Contents
  • What is labor certification?
  • Process of labor certification
  • What are the benefits and drawbacks of labor certification?
  • Frequently asked questions

What is labor certification?

Labor Certification is a process in which an employer seeks to employ a foreign worker for a specific job opportunity in the United States.

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The process is administered by the United States Department of Labor (DOL) and is intended to ensure that the employment of a foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.

The employer must first conduct a recruiting process, which must include advertising the job opportunity to U.S. workers, in order to demonstrate that there are no available and qualified U.S. workers for the job opportunity. If the employer is unable to find any available and qualified U.S. workers, the employer can then file a labor certification application with the DOL. HBR’s immigration and employment regulation insights

The Labor Certification application includes information about the job opportunity and the recruiting process, as well as documentation of the employer’s efforts to recruit U.S. workers. The DOL will then review the application to ensure that the employer has met all of the requirements and that the employment of the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.

If the DOL approves the Labor Certification, the employer can then use it as the basis for filing an immigration petition for the foreign worker with the United States Citizenship and Immigration Services (USCIS).

Process of labor certification

The process of Labor Certification generally involves the following steps:

  1. Recruitment: The employer must first conduct a recruiting process, which must include advertising the job opportunity to U.S. workers, in order to demonstrate that there are no available and qualified U.S. workers for the job opportunity.
  2. Application: Once the recruiting process is completed, the employer can file a labor certification application with the United States Department of Labor (DOL). The application must include information about the job opportunity, the recruiting process, and the employer’s efforts to recruit U.S. workers.
  3. Review: The DOL will review the application to ensure that the employer has met all of the requirements and that the employment of the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.
  4. Audit: If the DOL selects the application for an audit, the employer will have to provide additional documentation to support the information provided in the application.
  5. Approval/Denial: If the DOL approves the labor certification, the employer can then use it as the basis for filing an immigration petition for the foreign worker with the United States Citizenship and Immigration Services (USCIS). If the DOL denies the application, the employer can either appeal the decision or file a new application with additional evidence.
  6. Validity: Labor certification is valid for a limited period of time, typically 180 days from the date of issuance.

What are the benefits and drawbacks of labor certification?

Benefits of Labor Certification include:

  1. Ensuring Fair Competition: Labor certification ensures that the employment of a foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.
  2. Providing a Legal Basis for Hiring Foreign Workers: Labor certification provides a legal basis for hiring foreign workers, which can help to avoid potential issues related to immigration laws and regulations.
  3. Fostering Economic Growth: By making it possible for employers to hire foreign workers when they are unable to find qualified U.S. workers, labor certification can help to support economic growth.
  4. Improving the Chances of getting Green Card: A labor certification is a prerequisite for certain types of green card applications, such as EB-2 and EB-3

Drawbacks of Labor Certification include: SHRM’s immigration and labor certification guidance

  1. Time-consuming and Complex Process: The labor certification process can be time-consuming and complex, involving extensive documentation and multiple steps.
  2. High Costs: The labor certification process can be expensive, requiring legal fees, advertising costs, and other expenses.
  3. Uncertainty: The labor certification process can be uncertain, as the DOL may deny the application or select it for an audit.
  4. Limited Validity Period: Labor certification is valid for a limited period of time, typically 180 days from the date of issuance.
  5. No Guarantee of Success: Even if the labor certification is approved, there is no guarantee that the foreign worker will be granted a green card or other immigration benefits.
  6. Rigid Requirements: The DOL’s requirements for labor certification are rigid, and an employer has to show that no qualified US citizen is available for the job and that the hiring of a foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.

Understanding labor certification requirements helps HR teams navigate the legal pathway for sponsoring skilled foreign workers. Using objective assessments and a structured hiring plan drives improvement, helping organizations attract and retain top talent.

Frequently asked questions

Labor certification (also called PERM labor certification) is a process required by the US Department of Labor for most employment-based green card sponsorships. The employer must demonstrate that no qualified, available, and willing US workers exist for the position before the foreign national can proceed with an immigrant visa petition.

Most EB-2 (advanced degree or exceptional ability) and EB-3 (skilled workers, professionals, unskilled workers) green card applications require PERM labor certification. EB-1 (extraordinary ability, outstanding professors/researchers, multinational managers) generally does not require labor certification. National Interest Waivers (NIW) under EB-2 also bypass the requirement.

PERM involves: defining the job requirements and minimum qualifications, conducting a specified recruitment process (job postings, newspaper ads, campus recruiting, etc.) within a defined timeframe, documenting that no qualified US workers were rejected for the position, and filing ETA Form 9089 with the DOL. The DOL may audit the application or approve/deny it.

Standard PERM processing currently takes 12-24+ months, though times vary significantly. Audited cases take longer (18-36 months or more). Strategic HR planning is critical : sponsors should begin PERM well in advance of when the employee needs permanent status, and should counsel sponsored employees about priority date backlogs that affect the overall green card timeline.

Employers must conduct good-faith recruitment using the DOL-specified methods, document each step thoroughly, genuinely consider all US applicants, have a lawful job-related reason for rejecting any US applicants, and retain all recruitment records for five years. Fraudulent or inadequate recruitment is the most common reason for PERM audits and denials.

They serve different purposes. An H-1B is a temporary nonimmigrant work visa (not labor certified under PERM) that allows employers to hire specialty occupation workers for up to 6 years. PERM is a step toward permanent residence (green card). H-1B holders are often on a PERM track simultaneously : H-1B status is maintained while the green card process proceeds.

Table of Contents
  • What is labor certification?
  • Process of labor certification
  • What are the benefits and drawbacks of labor certification?
  • Frequently asked questions
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