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What to Do If You Underpaid an Employee Compared to the Prevailing Wage Determination in Your PERM Application

If an employer discovers they have underpaid an employee compared to the prevailing wage determination after submitting their PERM application, they should rectify the situation immediately. This can be achieved by making the necessary adjustments to the employee's compensation to meet the prevailing wage requirements and documenting these changes appropriately. By taking prompt action, the employer can demonstrate compliance with wage regulations and avoid potential legal issues.

Last updated: July 18, 2025 7:57 pm
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Key takeaways

Employers must obtain a prevailing wage determination before filing a PERM application to ensure fair pay for foreign workers.
Steps to address underpayment include assessing the situation, repaying the employee, reporting to the DOL, and amending the PERM application.
Failing to address wage discrepancies can result in legal action, audits, penalties, and negative impacts on future applications.

What to Do If You Discover an Underpaid Employee During the PERM Application Process

Employers navigating the complexities of hiring foreign workers in the United States are obligated to adhere to specific wage requirements. A critical aspect of this process is the prevailing wage determination, which sets the minimum wage that must be paid to a foreign worker based on the job’s location and requirements. Ensuring fair pay is not only a legal requirement but also an ethical responsibility.

Understanding Prevailing Wage Determination

Before filing a PERM (Program Electronic Review Management) application, employers are required to obtain a prevailing wage determination from the Department of Labor (DOL). This figure serves as a benchmark to prevent the undercutting of wages that could affect the job market. When filing a PERM application, it’s crucial to confirm that the offered salary meets or exceeds this prevailing wage to comply with labor laws.

Steps to Take After Identifying Wage Discrepancies

If you, as an employer, realize that you have underpaid an employee compared to the prevailing wage after filing the PERM application, swift action is necessary. Here’s a structured approach to resolving the issue:

1. Assess the Situation: Review the specifics of the underpayment, including the extent and duration of the discrepancy. This will help in determining the correct course of action.

What to Do If You Underpaid an Employee Compared to the Prevailing Wage Determination in Your PERM Application

2. Repay the Employee: The immediate step is to provide back wages to the underpaid employee to make up for the shortfall. This rectifies the underpayment and demonstrates good faith efforts from the employer’s side.

3. Report to the DOL: Transparency is essential in dealing with such issues. Employers should report the matter to the DOL, providing details of the underpayment and the measures taken to resolve it.

4. Amend the PERM Application: If the PERM application process is still ongoing, employers must amend relevant sections to reflect the accurate wage being paid. If the PERM application has already been approved, further advice from immigration counsel is advisable.

5. Document Everything: Keep meticulous records of the wage discrepancy, the corrected payments, and communications with the DOL. This documentation is critical in case of audits or investigations.

Consequences of Non-Compliance

Not addressing wage discrepancies can lead to dire consequences, including:

  • Legal Action: The employee could bring legal action against the employer for wage violations.
  • Audits and Penalties: The DOL may conduct audits, which could result in fines and penalties.
  • Impact on Future Applications: Non-compliance can negatively affect the reputation of the employer and the outcome of future PERM applications.

Conclusion

Employers have the responsibility to ensure compliance with prevailing wage determinations throughout the PERM application process. Discovering an underpaid employee requires immediate and transparent action to rectify the situation. Employers should also consider consulting with legal experts to navigate the intricacies of immigration law and protect the rights of their employees.

For official guidance and resources on immigration laws and policies, visit the United States Department of Labor’s website on prevailing wages. It’s the authoritative source for information that can help employers maintain compliance and address issues related to the PERM application process.

So there you have it, folks! Remember, in the vast world of PERM applications and prevailing wage determinations, it’s crucial to pay foreign workers their fair share. Don’t let those wage discrepancies go unnoticed! Take swift action, repay your employees, and report the issue to the DOL. But hey, if you want even more insider tips and tricks on all things immigration, head on over to visaverge.com. Trust me, you’ll be hooked! And remember, fair pay equals happy employees, and happy employees make for a successful business. Stay compliant, my friends!

FAQ’s to know:

FAQ 1: What is prevailing wage determination, and why is it important in the PERM application process?

Answer: Prevailing wage determination is the minimum wage set by the Department of Labor (DOL) that must be paid to a foreign worker based on the job’s location and requirements. It ensures fair pay and prevents the undercutting of wages. Prevailing wage determination is crucial in the PERM application process to comply with labor laws and avoid negative consequences such as audits and penalties.

FAQ 2: What steps should employers take if they discover an underpaid employee during the PERM application process?

Answer: If you discover an underpaid employee during the PERM application process, follow these steps:
1. Assess the situation to determine the extent and duration of the discrepancy.
2. Repay the underpaid employee to rectify the underpayment and demonstrate good faith efforts.
3. Report the matter to the DOL, providing details of the underpayment and actions taken to resolve it.
4. Amend the PERM application to reflect the accurate wage if it’s still ongoing. Seek advice from immigration counsel if the application has already been approved.
5. Document everything, including the wage discrepancy, corrected payments, and communications with the DOL, for audit or investigation purposes.

FAQ 3: What are the consequences of not addressing wage discrepancies during the PERM application process?

Answer: Neglecting to address wage discrepancies during the PERM application process can lead to the following consequences:
– Legal action from the underpaid employee for wage violations.
– Audits by the DOL, resulting in fines and penalties.
– Negative impact on the employer’s reputation and future PERM applications.

What did you learn? Answer below to know:

  1. True/False: Employers are required to obtain a prevailing wage determination from the Department of Labor before filing a PERM application.
  2. What is the first step an employer should take after identifying wage discrepancies with an underpaid employee during the PERM application process?
  3. What are the potential consequences of not addressing wage discrepancies during the PERM application process? Select all that apply.
    a) Legal Action
    b) Higher Application Fees
    c) Audits and Penalties
    d) Delayed Application Process
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