#Browse More links

How the PERM Process Job Ads Are Affected by the New Wage Transparency Laws

Do you need clarification about the wage transparency law? Are you worried about its effects on PERM process job Ads? Is making job advertisements bothering you? 

If these questions are stuck in your head, you have landed at the right place. This blog will tell you about PERM job advertisements, new wage transparency laws, and how they will affect the system. That’s not enough. We will provide you with the solution to escape this situation victoriously in the recruitment world.

Lead-up

The transparency law requiring certain firms to display “pay scales” in job adverts may already be known to employers as state and local laws governing “pay transparency.” By these pay transparency standards, a salary range that is not ambiguous and offers a reasonable, “good faith” expectation of the compensation for the position must be disclosed. 

When there is no anticipated variation in the potential pay for successful applicants, posting a specific salary or hourly rate may also be feasible. Colorado, New York City, and Washington have already passed pay transparency laws requiring disclosures in job advertisements.

For the first time, Colorado’s pay transparency law went into force on January 1st, 2021. Additionally, Columbia and Washington issued similar orders, and on January 1st of this year, 2023, the law became operative. 

You should also know about the changes made in the UK: Sponsor License Holder Duties.

What is Labour certification, also known as PERM?

A labor certification is a document that establishes the unavailability of qualified U.S. workers for a particular position and the wage that must be paid to an immigrant worker. This certification is submitted with Form I-140, Petition for Alien Worker. The purpose of labor certification is to ensure that the admission of foreign workers will not adversely affect the wages and working conditions of U.S. workers similarly employed. A labor certification may be permanent or temporary (also known as “seasonal”). This whole thing is also known as PERM certification, which stands for Program Election Review Management.

Why is this Certification required?

Companies that successfully recruit new talent will have a competitive advantage over those that aren’t—

The labor certification process is a way to ensure that the U.S. labor market is not adversely affected by the admission of foreign workers. It ensures that there are no changes in wages, working conditions, and other terms and conditions of employment for U.S. workers as a result of their admission into the country under this program.

This program aims to protect all U.S. workers from displacement by granting temporary visas. At the same time, they wait for permanent residency status or citizenship through naturalization processes, thus ensuring fair access to employment opportunities for them. 

You should know how Competition for Skilled Staff is growing more amid the UK Offshore Workforce growth.

Analysis

Due to the evolving nature of wage transparency, US firms, through the PERM procedure, are now required to consider a wide range of state and local obligations in addition to the federal rules controlling PERM when they create and distribute their job adverts. 

For instance, even though a state pay transparency statute may not consider the lower end of a wage range to be problematic, putting a job ad with a wage range that is below the prevailing wage for the PERM process will result in a DOL denial of a PERM certification under DOL regulations.

Compliance and strategy are particularly difficult to manage in the era of remote and hybrid work arrangements. Employers who post jobs that can be done remotely from any location inside the United States must abide by rules requiring wage disclosure in various jurisdictions. 

By hiring one worker—or a few workers, depending on the jurisdiction—within a particular region of the nation or by advertising or conducting business in that jurisdiction, large multistate firms will have comparable difficulties.

Employers can target compliance in all jurisdictions by taking a comprehensive approach to the wording of advertisements. For instance, if an employer takes a broad approach to compliance, they must provide not just a wage range but also a generic description of some benefits to meet the stricter criteria of the regulations in Colorado and Washington. PERM commercials need to be longer, more in-depth, and more expensive.

Factors to be considered by PERM job recruiters

The wording of each job posting could be taken into account individually as an alternative strategy. In either case, PERM businesses must start thinking and take into account the following details while creating job advertisements:

  • The ads must have the job’s salary range and include wage information.
  • The ads must also state that the employer complies with the Fair Work Act, which means they are not paying employees below award wage or premium rates.
  • Does this particular style of job posting fall under the legal definition?
  • What impact would flexible work schedules have on the job description’s requirements?
  • Which regulations apply to the entire business/employer?
  • How will other ongoing recruitment be affected by posting a salary range that includes the prevailing wage of the DOL?
  • Which laws are relevant to this particular job posting?
  • Is the DOL’s prevailing wage in the listed wage range sufficient?

Along with pay transparency, you should also know Salary Trends: What you should know in 2023?

Pay Transparency Laws’ Effects

With minor differences in content from jurisdiction to jurisdiction, employers in jurisdictions where pay transparency laws are in force must disclose an acceptable salary range in most job adverts or postings. Where relevant, companies must adhere to pay transparency regulations when posting advertisements for PERM applications.

Mintz advises firms to consider including a compensation range in all types of PERM recruitment because pay transparency rules are likely to be introduced in more states and municipalities. In cases where they apply, the state or municipal pay transparency laws for salary listings, as well as the DOL PERM regulations, must be followed by the salary range. It means according to current legislation requiring salary transparency.

  • the minimum wage must be equal to or higher than the prevailing wage set by the DOL;
  • the wage range must incorporate the PERM applicant’s foreign national salary; and
  • The pay range must be fair and correspond to the employer’s pay scale unless the prevailing rate is higher than the lowest pay level.

To abide by DOL regulations and state and local pay transparency obligations, employers conducting PERM recruitment must be aware of any pay transparency restrictions that apply to their PERM job locations. It may include regions in which an employee may work for remote-eligible positions. We advise companies to include a salary range in all PERM recruitment due to the expanding scope of these regulations, always ensuring that the lowest end of the range is at or above the going rate.

How Dynamic can Staffing Services help?

Whether a small business owner or a large enterprise, the new law has changed how you hire employees. You may have heard that the new law requires employers to disclose wages and other compensation information to prospective employees before hiring them. You may also have heard that this can be difficult and time-consuming. 

Dynamic Staffing Services is here to help!

We know you can only keep up with some changes in state and federal laws on this issue, so we’ve created a solution to help you comply with the new law without stressing out about it.

We’ll manage your PERM job ads compliance process from start to finish so you can focus on running your business instead of worrying about how expensive it is to hire qualified employees. We’ll ensure that all your ads are up-to-date and compliant with wage transparency laws.

The best part? Our services are affordable for small or bigger businesses, and our pricing models give our clients flexibility as they grow. We are tracking wage transparency developments and helping our clients by hiring suitable employees for their firms with transparency. 

We at DSS have already helped a wide range of employers embrace the new law’s impact and hire the best talents. If you also want to avail the benefits reach out to us today at +91-11-40410000 or inquire at enquiry@dss-hr.com.

If you want to know the tips, we follow for successful recruitment, read this Tips for Recruitment: Effective and Affordable

Wrapping Up

While the new laws have been in effect for only a few weeks, they will likely impact the perm process job ads for permanent residents. We can expect to see more candidates applying for positions in their field, especially those with low-paying jobs. It will lead to higher wages overall because more people are willing to work at those rates, which might otherwise not have been possible before these changes were made.

In addition, although it is still possible that some unscrupulous employers may choose not to follow these new rules just because they want their competitors to do so after coming into force, there’s a good reason why they should. If they want their employees happy, they should ensure they pay them enough money to meet US standards. 

If you are looking for employees globally, contact us today: Dynamic Staffing Services.

About the author

Headquartered in Dubai, with offices in 13 countries spread across UK, Europe, Middle East and South Asia, Dynamic Staffing Services is an industry leader within its niche space of international recruitment. Over the last 45 years, DSS has successfully places over 450 000 candidates in the engineering, healthcare, hospitality, IT and manufacturing sector. Please visit us as www.dss-hr.com to learn more about us. We pride ourselves in being an ethical recruitment services provider following the most stringiest regulations towards code of conduct. We recruit talent from Eastern Europe, India, Philippines, Vietnam, Indonesia, Africa, Egypt, Bhutan, Nepal, Bangladesh, Malaysia among other nationalities and place them into 24+ countries. Each year we give jobs to about 12 000 candidates.

A part of the 1500+ people strong Dynamic group, our sister company Dynamic World Education Community focuses on Study Abroad, by helping students find the right education (www.dynamicwec.net), Dynamic immigration focuses on providing immigration services (https://www.dss-hr.com/canada) to families wanting to move to Canada & Altudo focuses on software development and enhancing digital customer experiences (https://www.altudo.co )

Leave a Reply

Your email address will not be published. Required fields are marked *

Ready to get started?

Great organization require great talent. Tell us about your recruitment issues and allow us to help.