Understanding the Labor Condition Application

Published On
Sep 16, 2020
Read Time
8 Minutes
OnBlick Inc

Labor Condition Application (LCA) is the first step for any employer who is hiring a nonimmigrant worker at a specific location. Employers who are hiring non-immigrants on H-1B, H-1B1, or E-3 work visas are required to file LCA on behalf of the employees. It provides the necessary information to ensure the proposed employment will not adversely affect U.S. workers.

This form is required to be filed with the United States Department of Labor Employment and Training Administration (ETA) through ETA 9035/9035E. Form ETA 9035 refers to the LCA used if the employer fills out the paper form of the LCA and submits the hard copy to the DOL. Form ETA 9035E refers to the LCA used if the employer fills out and submits the electronic form of the LCA to the DOL.

LCA includes necessary details regarding the proposed employment like the proposed employment, including the job title, appropriate occupational classification, salary or rate of pay and whether employment is full-time or part-time, length of the proposed employment, the location(s) of employment, and the number of foreign national workers sought for such employment.

This article provides you a detailed understanding of all the required fields, thereby guiding you in completing the application.

Section A. Employment-Based Nonimmigrant Visa Information

To begin with, the first section is about the non-immigrant visa classification for which you are filing the LCA. Labor Condition Application is intended for any employer who is seeking a non-immigrant worker under H-1B, H-1B1, or E-3 visas. Let's find out a little about them.

H-1B Visa
The H-1B is a nonimmigrant work visa that allows those with bachelor’s degrees and specialty occupations to work for a U.S. employer for three to six years in the country. With an H-1B, you can work for most employers either full or part-time.

H-1B1 Visa
The H-1B1 visa is very similar to the H-1B visa except for the fact that it is granted to the nationals of Singapore and Chile. An H-1B1 visa very much resembles the H-1B visa. Out of the 65,000 visas that are allocated to the H-1B visa program, 6,800 of them are reserved for the H-1B1, in which 5,400 are meant for Singapore and 1,400 are meant for Chile.

E-3 Visa
The E-3 visa is only eligible for the citizens of Australia. Although this visa is similar to the H-1B visa,there are a few differences which make it stand out. Unlike other visas, the E-3 visa allows the spouse of the visa holder to work in the United States,even if they belong to different nationalities. Additionally, the E-3 visa can be renewed indefinitely in increments of 2 years.

Section B. Temporary Need Information

Section C.  Employer Information

  1. Legal Business Name: One has to make sure to provide the Full and exact legal name of the employer (e.g. business, person, association, firm, corporation, partnership, or organization) filing the application as reported to the Internal Revenue Service (IRS)

  2. Trade Name/Doing Business As (DBA): DBA is the operating name of a company, as opposed to the legal name of the company.
    Example: The DBA for employer “Computers & Software, Inc.” could be “CS, Inc.”

  3. Address 1, Address 2, City, State, Postal Code, Country, Province, Telephone Number, Extension: Employer should provide the appropriate point of contact information with all the necessary details.

  4. Federal Employer Identification Number (FEIN) : A FEIN or an Employer Identification Number (EIN), is issued by the Internal Revenue Service to entities that do business in the United States. It is a unique nine-digit corporate ID number that is used to identify business entities.

  5. NAICS Code: The North American Industry Classification System (NAICS) is used by the United States, Canada, and Mexico to classify businesses by industry. Each business is classified into a six-digit NAICS code number based on the primary business activity.

Understanding the Labor Condition Application

Section D. Employer Point of Contact Information

The information contained in this Section must be that of an employee of the employer who is authorized to act on behalf of the employer in labor certification matters. The information in this Section must be different from the agent or attorney information listed in Section E, unless the attorney is an employee of the employer.

Section E. Attorney or Agent Information

This section includes the attorney or agent information and one has to complete this section only if an attorney or an agent is involved in the process of completing this application. Else, you can mark “No” in the first question and can continue to the next section of the application.

The attorney/agent information in this Section, specifically the name, telephone number,and email address, must be different from the employer’s point of contact information in Section D, unless the attorney is an employee of the employer.

Section F. Employment and Wage Information

This section includes all the information about the place(s) of employment and wages offered for the requested position. A place of employment means the worksite where the work actually is performed by a nonimmigrant. Employer should make sure that all the intended places of employment, including those of short duration, should be mentioned here. If the Labor Condition Application is submitted non-electronically, attachments to the LCA are permitted for completion of all the locations.

a. Place of Employment

Understanding the Labor Condition Application

Prevailing wage rate is one of the important factor in determining that non-immigrant workers are not adversely impacting the wages of US workers.

The prevailing wage rate the average wage paid to similarly employed workers in a specific occupation in the area of intended employment. Employers can obtain this wage rate by submitting a request to the National Prevailing Wage Center (NPWC), or by accessing other legitimate sources of information.

As an employer, you can determine the prevailing Wage Rate in three ways:

  1. Request a formal prevailing wage determination (PWD) from the DOL by submitting the job description via an online system.
  2. Review the DOL’s wage data and determine the appropriate occupation and wage level on your own.
  3. Use a private wage survey that meets the DOL guidelines. You either can conduct your own wage or you can purchase a survey from a firm that collects and analyzes wage data.

Employer has to fill the next section of the Form based on source of prevailing wage. Employer has to fill only one of the below and completely.

Section G. Employer Labor Condition Statements

The main purpose of an LCA is for employers to attest to the employment details of H-1B, H-1B1 and E-3 applicants and to maintain documentation supporting that the following four main labor conditions have been met:

Section H. Additional Employer Labor Condition Statements – H-1B Employers ONLY

a. Subsection 1

  1. 25 or fewer full-time equivalent employees and at least eight H-1B nonimmigrant workers; or
  2. 26 – 50 full-time equivalent employees and at least 13 H-1B nonimmigrant workers; or
  3. 51 or more full-time equivalent employees of whom 15 percent or more are H-1B nonimmigrant workers.

b. Subsection 2

H-1B Dependent Employers and Willful Violators must agree to the following by attesting in subsection 2.

Section I. Public Disclosure Information

Public disclosure information will be kept at either: Employer’s principal place of business or Place of employment

Employer has to select one of the two options in this section based on the place where you are maintaining the public disclosure information.

If the employer elects to store the public access file electronically, the employer must make the file available and accessible for government or public inspection upon request, at the particular location(s) provided in Section I of the Form ETA-9035.

Section J. Notice of Obligations

For electronic filing, the person with authority to sign as the employer must sign and date the application immediately upon receipt of the certified application and before submission to USCIS

For non-electronic filing, the person with authority to sign as the employer must sign and date the application prior to submission.

Section K. LCA Preparer

Complete this section only if the preparer of the LCA is a person other than the one in Section D (Employer Point of Contact) or Section E (Attorney/Agent) of the LCA.

As the Labor Condition Application is the first step along the H-1B journey, it is extremely important that your LCA is perfect the first time rather than going through rejection cycles. Hope this article did guide you in getting a detailed insight into all the fields required for LCA and would help you in getting it certified.

Do you know that, one of the reason why most H-1Bs get denied is due to inappropriate SOC codes or wages?

Yes, most of the employers are struggling to get the right SOC codes for the job. OnBlick is here to make it easy for you. OnBlick’s SOC code predictor and wage-level calculator determines the right SOC codes based on the roles and responsibilities of the job using AI. Not just that, it even suggests the prevailing wage levels based on the duties of the beneficiary.

Schedule your demo today to get started.

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