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What is an LCA (Labor Condition Application)?
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LCA is for the Employer and not for the employee
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Rate of Pay and Prevailing Wage Information
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How long is an LCA is valid? How Long Can an LCA Be Used?
1. What is an LCA (Labor Condition Application)?
The Labor Condition Application is a document which must be certified by the US Department of Labour and it an integral part in the H-1B applications. This document details the terms and conditions of employment, details of the employer, the work profile, rate of salary, prevailing salary (it means the lowest salary that can be paid to a h-1b visa holder) and the location where the h-1b holder will work.
This application will also include relevant statements of the Section 8 of the LCA like
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H-1B holders will get at the minimum the actual salary paid by the employer to all other individuals with similar experience and qualifications for the specific job profile or the prevailing wage level for the occupation in the same area of job profile, whichever is higher.
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The employment of H-1B worker will not affect the interest of American Citizens who perform the similar function.
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The employer should state that there is no work stoppage in the facility where the h-1b holders are working
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The employer should also post the notice / intent to employ h1-b holders in the JOBS OPEN notice board
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2. LCA is for the Employer and not for the prospective employee
Labor Condition Applications is specific to the employer and not to any future employee. The LCA authorizes the employer to hire any H-1B holder for specified work/job profile for a specific location. So, the employer can begin the LCA process much before the actual appointment letter is issued provided, the employer knows the work location in advance. These are called Blanket LCAs and is used for processing 50 H-1B applications together.
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3. What is the Rate of Pay and Prevailing Wage Information?
Prevailing Wage
The prevailing wage is the minimum amount an employer can pay an H-1B holder. It is specific to both the occupation and the city and state in which the H-1B holder will work. Prevailing wages can either be obtained from the state SESA (State Employment Security Administration) office for the state where the
H-1B holder will be employed, or from a published independent survey. The prevailing wage is the mean salary for one year of experience for the specific occupation and geographic location.
An employer can also pay less than the prevailing wage as long as the actual rate of pay is within 95%-100% of the prevailing wage. A prevailing wage can be used for 90 days. Any use of the Labor Condition Application after 90 days following the determination of the prevailing wage requires the prevailing wage to be determined again.
Rate of Pay
The LCAs are not specific to any one individual and can be used for more than one H-1B visa applications which are processed. Hence a wage range on the LCA from the prevailing wage up to some figure above what the prospective is actually paid. This provides for flexibility of each individual and also allows for some confidentiality in the salary paid to any one individual since the Labor Condition Application must be posted in the facility where the individual will work.
For example an LCA will have a salary range of $60,000 to $90,000 per year. This means that the prevailing salary or the lowest for the particular job profile is $ 60,000 in that particular job / geographical location. The employer can pay any amount higher than 95% of $ 60,000 to the H-1B visa.
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4. How long is an LCA is valid? How
long can an LCA be used?
The LCA is valid only if the employee work with the employer for a minimum period of 6 months and LCAs are given with a time limit to be used since the salary changes often.
For more details, please write to murugesh@assureconsulting.com
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