Filing Delays of H-1B applications due to delays in LCAs being certified by Department of Labor - August 04, 2009

DOL introduced a new LCA filing system, called iCERT effective July 01, 2009. Unfortunately this new system is experiencing numerous technical problems including a critical issue that is causing delays in H-1B applications.

In order to file H-1B application with USCIS, a Certified Labor Condition Application (LCA) needs to be included from the Department of Labor (DOL) with the H-1B application. Since Monday, July 27, 2009 DOL has started denying LCAs as DOL cannot verify the Employer Tax ID or FEIN Number stated in the LCA with the Internal Revenue Service (IRS) under the new iCert system.

Therefore the current DOL practice is that we first file the LCA; the LCA is denied by iCert on the grounds that the FEIN No. is “incorrect”(even though the FEIN No. is actually correct).  In the LCA denial the DOL informs the Employer that the solution is to e-mail DOL a copy of the denial e-mail together with a government issued document to verify the employer FEIN. Please note DOL only informs the Employer of a denial of LCA and not the Attorney. Therefore, it is of the utmost importance that the Employer forward to the Attorney, the DOL denial LCA e-mail as soon as the Employer receives the same.

It seems that once a LCA is certified, the iCERT system will not have to verify the FEIN again with IRS and therefore all subsequent LCA for the same company should be certified without a problem. 

Therefore in order to have the LCA certified, the Employer should send to their Attorney as soon as possible at least one document from the list below:

1. Documentation from IRS noting assignment of FEIN Federal or State tax return (only acceptable with a pre-printed label) or;

2. Pre-printed tax coupon Documentation from employer’s financial institution showing employer’s FEIN together with Articles of incorporation, business license, or;

3. Other certifications of business existence Secretary of State registration documents Official and/or government documents, which have the name of the Employer and FEIN No. clearly stated on the document, or,

4. Please note that the President of the Employer can call IRS at 800 829 4933 and request IRS to fax the Employer a letter (Letter 147C) which states the employer's FEIN Number and name and address of Employer on IRS letter head.

DOL has not indicated as of date as to how long DOL will take to verify the Employer FEIN but it is expected to take at least several days. If the information provided is approved and the FEIN is verified by DOL, thereafter when the Employer submits a new LCA for review, DOL should be able to issue the LCA. The DOL will not reopen LCAs denied because of non-verification of FEIN after the FEIN is verified – the employer must submit a new LCA for processing.