LC Substitution Regulation - OMB Review Concluded
Posted Apr 30, 2007; updated May 16, 2007

For the latest information on this important regulation, see our May 16, 2007 NewsFlash! LC Substitution Elimination Reg Effective July 16, 2007.

The Office of Management and Budget (OMB) has concluded its review of the proposed regulation that would end labor certification substitution and other matters. More information on this proposed regulation is available in our March 9, 2007 MurthyBulletin article, LC Substitution Regulation Restricts Payment for LCs, available on MurthyDotCom. This means that the regulation could be finalized in the near future.

Now that the regulation has been reviewed by OMB, it must go back to the U.S. Department of Labor (DOL). When the DOL is ready to finalize the regulation, they will forward it for publication in the Federal Register. Regulations are sometimes effective immediately upon publication; in other instances, they are effective at some future point, usually 30 or 60 days after publication.

The final text of the regulation is being guarded closely and has not been revealed. This regulation, if finalized in a form that is close to the original proposal, will create significant change in immigration law and procedure. The regulation will not only eliminate substitution of beneficiaries in labor certifications, it will put a 45-day expiration on labor certifications, as well as require employers to pay the full costs of the labor certification process (legal and related). Again, the regulation may have changed in its final form. Until it is published, we will not know for sure! We are watching this matter closely to bring any updates to MurthyDotCom readers.