H-1B Employer’s compliance with Posting Requirements of an LCA Notice of Filing

LCA Notice of Filing – Key Facts

  • An employer who is in process of employing H-1B workers, upon filing of Labor Condition Application (“LCA”) Form ETA 9035 or 9035E must:

    • Provide notice of filing to the bargaining representative, if a Union exists in the employer’s business.
    • Post the notice of filing in two or more conspicuous locations in the employer’s place of business, and/or at a client worksite if employee will be working at client’s place.
  • LCA Notice of Filing requirements for an “H-1B” will include “E-3 and H-1B1” as well.

What will an LCA Notice of Filing consist of?

The notice may be the LCA itself or a document of sufficient size and visibility that indicates:

  • That employer is seeking to employ H-1B worker(s)
  • Number of H-1B worker(s) on the LCA
  • Occupational classification H-1B worker(s) would be employed in
  • Wage(s) offered
  • Period of employment
  • Location(s) at which the H-1B worker(s) will be employed
  • That the LCA is available for public inspection
  • Notice shall also clearly state where complaints may be filed by aggrieved parties, and will state: “Complaints alleging misrepresentation of material facts in the labor condition application and/or failure to comply with the terms of the labor condition application may be filed with any office of the Wage and Hour Division of the United States Department of Labor.”

What are the Posting Requirements for an LCA Notice of Filing?

  • Notice must be posted in a least two conspicuous (“easily visible to everyone”) locations at each place of employment where any H-IB worker(s) will be employed.
  • Notice must be posted on or within 30 days before the date the LCA filing and shall remain posted for a total of 10 days.
  • Notice must be posted in areas where Wage and Hour and OSHA notices are posted.

LCA Notice of Filing Formats

  1. Hard Copy Notice
    A hard copy notice shall be posted in at least two conspicuous (“easily visible to everyone”) locations at each place of employment where any H-1B nonimmigrant will be employed (whether such place of employment is owned or operated by the employer or by some other person or entity).
  2. Electronic Notice
    • An employer cam provide electronic notice to employees in the “occupational classification” for which H-1B employee(s) are being recruited, through any means it normally communicates with employees. For e.g. an employer website home page, electronic bulletin board or an e-mail.
    • If electronic notice of filing is sent through e-mail, it need only be sent once.
    • If posted on employer website (e.g., home page or electronic bulletin board), it should be “posted” for 10 days.
      Where employees lack practical computer access, a hard copy must be posted in accordance with posting requirements. In alternative, the employer may provide employees individual copies of the notice.

Additional Notice of Filing Requirement for an “H-1B-Dependent Employer” or a “Willful Violator”

If the employer is an H-1B-dependent employer or a willful violator, and the LCA is not being used only for exempt H-1B worker(s), the notice of filing will set forth the nondisplacement and recruitment obligations to which the employer has attested, and also include the following additional statement:

“Complaints alleging failure to offer employment to an equally or better qualified U.S. applicant or an employer’s misrepresentation regarding such offers of employment may be filed with the Department of Justice, Civil Rights Division, Office of Special Counsel for Immigration-Related Unfair Employment Practices, 950 Pennsylvania Avenue, NW., Washington, DC 20530, Telephone: 1 (800) 255-8155 (employers), 1 (800) 255-7688 (employees); Web address: http://www.usdoj.gov/crt/osc.

Notice of Filing Requirements for H-1B employee(s) placed at worksites not previously listed on LCA

Where the employer places any H-1B employee(s) at one or more worksites not listed at the time of filing the application, but which are within the area of intended employment listed on the LCA, the employer is required to post electronic or hard-copy notice(s) at such worksite(s), as per notice of filing requirements, on or before the date any H-1B employee begins work at that worksite.

Providing LCA Filing Notice to the H-1B Employee

The employer shall provide the H-1B nonimmigrant with a copy of the LCA (Form ETA 9035, or Form ETA 9035E) certified by ETA and signed by the employer (or by the employer’s authorized agent or representative).
Notice must be provided no later than the date the H-1B employee reports to work at the place of employment.
If H-1B employee requests, the employer will immediately provide a copy of the cover pages, Form ETA 9035CP.

H-1B Employer Documentation of LCA Notice of Filing

H-1B employer should develop and maintain documentation to provide proof of notice of filing as follows:

  • If a Union exists, copy of the dated notice and the name and address of the collective bargaining representative to whom the notice was provided.
  • When a Union does not exist, employer shall note and retain the dates when, and locations where, the notice was posted and also retain a copy of the posted notice.

How does an H1B employer Verify FEIN with Department of Labor?

Labor Certification Application (“LCA”) and H-1B Filing

On April 15, 2009, the Department of Labor (“DOL”) launched its iCERT Portal, creating a new electronic system for the submission of Labor Condition Applications. The first step for an employer in an H-1B filing is to obtain an LCA certification from DOL. The LCA is completed on electronic Form ETA 9035E through the DOL iCERT Visa Portal System.

United States Customs and Immigration Service (“USCIS”) does not accept an H-1B petition without a certified LCA. USCIS begins accepting H-1B Cap petitions on April 1, and there has been an enormous rush in H-1B filings in the past few years. The Cap quota is usually exhausted in the first five days leading to a lottery system. Not having a Certified LCA on time can render an H-1B employer unable to file on time, and as a result not qualifying a petition to be accepted in the H-1B cap lottery system.

First Time H-1B Employers (Petitioners)

H-1B employers who routinely file LCAs through the iCERT portal will have their Federal Employer Identification Number (FEIN) already registered and verified by the Office of Foreign Labor Certification (“OFLC”), a division of DOL. However, OFLC might not have FEINs for certain employers registered and verified in their database–especially first-time H-1B filers.

For these H-1B employers, LCAs will not be certfied unless the employer’s Federal Employer Identification Number (FEIN) can be verified by the OFLC. If the employer or their attorney tries submitting an LCA through the iCERT portal, the OFLC system would flag the FEIN entry as an error, due to non-verification. Employer or their attorney representative might get an email from OFLC, that the LCA would not be certified, and further instructions would be provided to submit by fax, e-mail as a PDF, or mail to the Chicago NPC, documents that indicate the validity of the FEIN.

Documents an H-1B Employer should submit for FEIN Verification

  • Letter from IRS noting assignment of the FEIN
  • Federal or state tax return with preprinted label, or a pre-printed tax coupon
  • Documentation from employer’s financial institution showing FEIN
  • Articles of incorporation, business license, or other certifications of business existence
  • State corporate registration documents
  • Other official or government documents
  • Other documents showing FEIN and name of employer

While it is not necessary to submit all the documents in the above list, atleast two documents showing the FEIN would suffice.The FEIN should be clearly visible on the visible on the supporting document.

Submission of FEIN Verification Documents to OFLC/DOL

Employer or their attorney representative should email the scanned documents to DOL, using the address LCA.Chicago@dol.gov. The subject of the email should be “LCA Business Verification Team.” Please note using any other subject line is used, might lead to a significant delay in FEIN verification.

Why should an H-1B Employer begin FEIN Verification way ahead of time?

An employer who intends to file for H-1B, does not have a wait for a specific time to apply for FEIN verification with the DOL. It can be done at any time. However, during the H-1B cap filing season, OFLC/DOL is backlogged with tons of FEIN Verification requests. As a result, it can sometimes take longer than 5-6 days to get a FEIN Verification. There can also be some delay if DOL requests for additional documents for verification. Hence is it is recommended that H-1B employers not wait until the end, but rather get the verification done way ahead of time.

Labor Condition Application (LCA) – Key Facts

LCA Key Facts

  • Employer (“Petitioner”) must obtain a certification from Department of Labor (“DOL”) that it has filed a Labor Condition Application (“LCA”) in the occupational specialty. Before an H-l B petition can be filed the employer must obtain certification of an LCA.
  • The employer must have a valid Federal Employment Identification Number (“FEIN”) in order to file for an LCA.
  • LCA Applies to all H-1Bs including fashion models and physicians, but not Department of Defense (“DOD”) category.
  • LCAs are also for H-1B1s and E-3s.
  • The LCA is completed on electronic Form ETA 9035E through the DOL iCERT Visa Portal System.
  • DOL no longer accepts LCAs by fax but may allow mail-in where employer has a physical disability or lacks internet access.
  • Employers with physical disabilities or those who lack internet access must submit a written request to DOL for permission to submit the LCA via U.S. mail, establishing why the employer is unable to file electronically.

LCA Certification Timeline

  • The LCA will not be accepted by the Department of Labor (DOL) more than 6 months before the beginning date of employment.
  • Unless the DOL finds the LCA “incomplete” or “obviously inaccurate”, the agency is directed to provide the certification within (7) seven working days of the filing of the application.
  • If no email notification of a final determination is received within (7) seven working days, employer can check with ICERT Portal System and LCA Help Desk at LCA.Chicago@dol.gov.

What does an LCA contain?

  • It shall contain the number of workers sought, the occupational classification for each, the prevailing wage and method for determining it, the wage rate, location of worksite(s), hours of work (full-time or part-time).
  • It will also indicate if it is filed for a new case, a transfer case or an extension with the same employer case.
  • It can be for one or more workers

LCA Availability for Inspection

Employer must make LCA available for public inspection within (1) one day of filling with DOL.

LCA submission with H-1B Petition

  • LCA (“ETA 9035E”) must be printed and signed by the employer immediately after Employment and Training Administration (“ETA”) provides the electronic certification.
  • The signed form must be maintained in the employer’s file, a copy must be maintained in the public access file, and another copy submitted with the H-1B petition.

LCA for multiple Worksites

  • Although, the LCA is be limited to a single occupational classification (job classification), and part-time or full- time work; it can list multiple locations where the H-IB employee will work.
  • LCA should list the prevailing wage for each worksite, and employer should pay atleast highest of the prevailing wage of all worksites.

LCA for Part-time and Full-time Work

  • LCA may cover either full-time or part-time work hours.
  • A single LCA cannot combine full-time and part- time positions.

LCA must be provided to the Employee

The employer shall provide a signed copy of the certified LCA to the H-1B employee no later than the date he or she reports to work.

LCA Posting Requirements

Notice of the LCA must be posted at the employer’s work place and/or client worksite. If there is a union it must be given to the union before filing the LCA.

LCA Public Access File

An employer must maintain a public access file accessible to interested and aggrieved parties. The public access file must be available at either the employer’s principal place of business or at the worksite.

How long should the LCA records be retained?

  • All records must be retained (1) one year beyond the LCA period or if complaint is filed, until the complaint is resolved.
  • Payroll records must also be retained for these periods but no less than the 3-year period beyond the LCA period.

Can an LCA be amended?

No there is no provision of amending an LCA. If there is a “material change” in the employment, employer must file a new LCA.

Can an LCA be withdrwan?

  • An employer may withdraw an LCA through the ICERT Portal System, via email or by written notice.
  • An employer may withdraw the LCA at any provided the employee benefiting from the LCA is not currently working, and Wage and Hour Department (“WHD”) has not commenced an investigation.
  • Termination that is properly conducted (bonafide) will also end the LCA validity.

Termination of H-1B Employee – Is it bonafide?

What constitutes proper termination of an H-1B employee?

Termination and layoff of H-1B employees often put forth questions as to whether the termination was bonafide. H-1B regulations can impose strict penalties on employers for not properly terminating employees, resulting in unnecessary legal battles and costs, and possible future disqualification from the H-1B program for the employers.

This post will layout the regulations, and give an insight into proper procedure to be followed in an H-1B employee’s termination. H-1B employers can be found liable for back wages, and an employee may not be considered properly terminated for purposes of cutting off backpay and frontpay unless the employer abides by the following steps:

  1. Termination Letter

    Employer should properly and clearly notify the H-1B employee of the termination. This should ideally be in form of a termination letter. The letter should clearly state employee’s last day of work.

  2. Letter notifying USCIS

    Employer should notify United States Customs & Immigration Service (“USCIS”) that the employment relationship has been terminated as of the last date of H-1B employee’s work. This notice should be sent via a letter.

  3. Offer Transportation Cost

    Employer should offer the H-1B employee with payment for transportation home, in the termination letter. This could be in form of a payment for air ticket reimbursement, if the employee needs to leave for his/her home country. If, however, the H-1B employee voluntarily resigns, transfers his or her employment to another H-1B employer, or changes his or her status to another lawful visa classification, the travel-reimbursement requirement is nullified.

All the 3 steps listed above must be followed by an H-1B employer for proper employee termination. None of these steps are optional, and not complying with even a single step could result into employer being liable for back pay and/or pay until the end of Labor Condition Application (“LCA”) period.

Department of Labor (“DOL”) Compliance for proper Termination

USCIS and DOL are two separate government agencies who are responsible for H-1B program enforcement. Since DOL primarily deals with labor violations, it is primarily involved in frontpay/backpay issues and also termination/layoffs of H-1B employees. Any complaints regarding H-1B terminations are usually dealt by DOL investigators.

In order to comply with DOL, employers should withdraw the LCA, as soon as the H-1B employee is terminated. This will notify DOL of the termination.

So why is proper bonafide termination of an H-1B employee so important?

As discussed in the section above, not terminating an H-1B employee could create unnecessary legal hassles for the employer. However, more importantly improper termination can also put the H-1B employee’s status in jeopardy. In many instances, the H-1B employee might not be aware of his termination, and be under an impression that he/she is still employed by the employer. Since the employee has stopped performing specialty occupation duties, as such he/she would be considered out-of-status. Further, by the time the employee finds out of the termination, it might be a little too late, and can make it difficult for him/her to transfer H-1B visa with another employer.

Recent Cases where Employer paid heavy penalty for not following proper steps in an H-1B Employee’s Termination

In a recent DOL case, the Wage and Hour Department (“WHD”) Administrative Law judge (“ALJ”) awarded more than $150,000 in back wages, interest, and legal fees to a single H-1B employee who was wrongfully terminated by his California-based employer after only four months of H-1B employment. The basis for such a significant award was, in part, punitive, as the judge found that the employer had unlawfully retaliated against the H-1B worker upon learning that he filed a grievance with the DOL’s Wage and Hour Division. The H-1B worker alleged in his grievance that he had been unlawfully “benched” and unpaid for much of his first four months of employment. Because the employer was unable to evidence proper notification to the USCIS of the H-1B worker’s termination and, further, was unable to demonstrate it had offered to reimburse the terminated H-1B worker the cost of his travel back to his last residence abroad, the ALJ found the employer failed to effectuate a bonafide termination. The ALJ ordered the employer to pay the H-1B worker the $60,000 yearly salary listed in the LCA for the remaining two years and eight months of the H-1B worker’s “authorized period of stay” in the LCA.

H1B Amendment : When should it be filed?

H-1B Amendment Key Facts

  • H-1B employer (petitioner) must file an amended or new petition, where any material changes have occurred–in the terms and conditions of employment or training or the H-1B employee’s (beneficiary’s)eligibility–from what was specified in the original approved petition.
  • A new Labor Condition Application (“LCA”) reflecting the material change must be filed along with the amended H-1B petition.
  • The responsibility to determine if the change of material or not, however lies on the employer.
  • H-1B employer will be considered to be in violation and the H-1B petition may be revoked, if non-compliance where amendment was required, but did not happen.

While “material change” has been defined under the H-1B regulations, it is a very gray area. Also it differs on a case-by-case basis, and it would be inaccurate to generalize every case and view it through the same lens. So it is always recommended that your case be evaluated by a competent immigration attorney, even though you might feel that based on facts at hand, an amendment might not be necessary. Many a times, a wrong analysis can lead to unnecessary petition revocations and increased future Department of Labor (“DOL”)/Department of Homeland Security (“DHS”) site visits.

Following factors in an employment situation will help you analyze if a “material change” has occurred and if an employer should file for H-1B Amendment:

  1. Promotion

    Routine promotions are generally not deemed “material,” as they do not directly impact the employee’s continued eligibility for H-1B classification. Hence, promotion to a higher position within the same occupational classification would not normally require the filing of an amended petition, provided that the alien is required to utilize the same academic training as was required in the former petition.

    For e.g. a promotion of a Programmer Analyst to a senior Programmer Analyst may not require an amended petition. However, promotion from Systems Analyst to a Technology Project Manager (different occupational classification) would most likely require an amended petition. Also, even if an H-1B amendment has not been filed, it is prudent to atleast file a new LCA and maintain it in the LCA Public Access File. Promotion might need a change on the Wage Level in the LCA.

  2. Salary

    A salary increase which is in line with a promotion within the same occupation classification would not generally be a material change and thus would not require a new petition. However, if the occupational classification and job duties have changed significantly, a new LCA as well as H-1B amendment would need to be filed.

  3. Hours

    Many H-1B employers at some point in time, realize that they are unable to offer the H-1B employee, work that would justify full-time hours Under American Competitiveness and Workforce Improvement Act (“ACWIA”), an employer is mandated to pay wages to an H-1B employee who is in nonproductive status, unless such nonproductive status is due to either the worker’s own initiative or certain circumstances which render the worker unable to work (e.g. sick leave, family medical leave etc.). These are also known as “no-benching” rules.

    When an employer does not have sufficient work for the H-1B worker to make payment of his/her required wages feasible or advantageous to the employer, the employer may terminate the H-1B’s employment, notify immigration and pay for the alien’s return transportation.

    However, if the H-1B employee is continued to be employed, but his or her hours have changed significantly, it is prudent that the employer files an amended petition to reduce the worker’s hours in order to avoid remaining liable under the “no benching rules” for the number of hours listed on the previous petition.

  4. Change in Occupational Classification and Job Duties

    Majority of H-1B amendments happen due to a change in occupational classification and job duties. A change to an occupation not listed on the LCA invalidates the LCA. Hence, as discussed earlier, a promotion that results in the application of a new Occupational Code (such as a move from professional employment to a management level position) may constitute a change in occupation.

    Also, when the new position is in a different specialty occupation, it will be deemed as a material change. For e.g. if a physician on H-1B is teaching or conducting medical research and then seeks to provide clinical care, an amended petition must be filed.

  5. Corporate Name Change

    When only the name of the company changes, no new or amended petition need be filed. A corporate name change by itself does not constitute a material change. Note, however, an H-1B amendment is recommended in this case, even though it is not required, as this will prevent the beneficiary from experiencing undue difficulty on future
    entries into the United States, on an unexpired visa issued in the previous company name.

  6. Corporate Restructuring

    If an H-1B employer is involved in a corporate restructuring—including a merger, acquisition, or consolidation—that employer is not required to file amended H-1B petitions on behalf of its H-1B employees if the new corporate entity “succeeds to the interests and obligations of the original petitioning employer”’ and if the terms and conditions of employment otherwise remain the same for the H-1B employees.

    After restructuring, the “new” corporate entity must maintain a list of all transferred H-1B employees and draft a “sworn statement” that it will assume all “obligations, liabilities and undertakings arising from or under attestations made in each certified and still effective LCA”. The new corporate entity must file new LCAs and H-1B petitions only if it hires new H-1B employees, or if it seeks an extension of H-1B status for any of its current H-1B employees. This sworn statement must be maintained in employer’s Public Access Files, along with the LCA.

    After restructuring, if an H-1B employee is traveling back into the United States he should carry a letter from the H-1B employer stating that:

    1. New corporate entity has succeeded to the interests and obligations of the original H-1B petition employer; and
    2. Terms and Conditions of the H-1B employee’s employment remain the same (i.e. there is no “material change”)

  7. Transfer from one Branch to Another

    Mere transfer from one branch of a firm to another branch of the same firm does not require the filing of a new or amended petition, since a branch of a firm is not considered to be a separate entity from its parent company.

    If H-1B employee is transferred from one entity to another entity within the same organization, a new or amended petition should be filed if the new entity becomes the new H-1B employer. A transfer to a new entity would also include a change in job site, and hence would invalidate the underlying LCA. Hence, an amended petition must be filed.

  8. Change in Job Location or Client Site

    This is the most confusing section for H-1B employers. There are very conflicting opinions as to what consists of a job location change, especially in case of staffing employers who employ H-1B employees at third-party client sites.

    The problem is involvement of two different enforcement agencies i.e. Department of Labor (“DOL”) and DHS (“Department of Homeland Security”) in conducting site inspections to ensure “No Fraud” in H-1B filings.


    An H-1B employee completes his project with Client A in Chicago as a Programmer Analyst, and moves on to a new project with Client B in New York as a Programmer Analyst. H-1B employer properly files a new LCA to reflect the change in location, and even adjusts the wages in accordance with the new prevailing wages (if higher than Chicago). There is no “material change” as far as the occupational classification and job duties. So employer does not feel there is a need to file for an H-1B amendment.

    DHS does not know that the H-1B employee has moved from Client A to Client B, since they only have the previous LCA which was filed with the employee’s H-1B petiton, which reflects Client A’s worksite. The Fraud Detection and National Security (“FDNS”), conducts a random site inspection at Client A’s worksite. Obviously they find that the H-1B employee is not working there. United States & Customs Immigration Service (“USCIS”), a part of DHS then either sends a Notice of Intent to Revoke (“NOI”) or automatically revokes the H-1B petition.

    Despite having a new LCA on file, because the employer did not file for an H-1B amendment, such revocations can happen and can result in future site audits for the same employer. So the safe rule to follow in order to avoid such circumstances, is to file for an H-1B petition if job location has changed, and a new LCA has been filed.

    Are there situations when despite a Job Location has changed, an H-1B Employer need not file an Amendment?

    Yes. There are two situations where an H-1B amendment need not be filed despite a change in job location, as long as there are no other “material chances” discussed above. An H-1B amendment need not be filed, if the H-1B employee changes a job location or worksite which falls within:

    1. Reasonable commuting distance (35 miles) or
    2. Same Metropolitan Service Area (MSA) as the original worksite for which the H-1B petition was initially filed. For e.g. a work site change from Midtown NYC to Downtown NYC.

  9. Temporary Travel to a Client Location

    If H-1B employee is temporarily traveling to a client location for a very short duration (e.g. 2 weeks), employer might not need a new LCA, and hence an H-1B amendment also would not be required. The test would be that it should not become a permanent worksite for the employee.