KEEP LABOR CERTIFICATION PROGRAMS IN ETA

 

THE ISSUE: The Department of Labor has proposed to shift administration of all foreign labor certification programs from the Employment and Training Administration (ETA) to the Employment Standards Administration (ESA), Wage and Hour Division.  The employer community strongly oppose this shift in how the DOL provides U.S. companies with access to needed foreign-national workers where a shortage of American workers can be demonstrated.

BACKGROUND:

·        The shift from ETA to ESA would not serve employers.  Unlike ETA, ESA has no experience administering a program of this type and magnitude.  Due to its past experiences, ETA has a better understanding of how to effectively reform the current program.  Given the urgent need for reform, ESA’s lack of knowledge of the program and employers’ needs would further exacerbate problems in the labor certification process.  Furthermore, these two divisions have different and incompatible missions.  ETA focusses on employers’ responsibilities in meeting the needs of a prepared U.S. workforce.  On the other hand, ESA’s focus is on punishing those employers who violate the law.  Enforcement and service provision are two distinct functions that would represent a conflict of interest if they were to fall within the same division.  (Acknowledging this conflict, ESA has stated that it would keep the functions separate within the division.  However, such a separation is unlikely given ESA’s well-defined enforcement mission.)  The better solution is to maintain administration of the program within ETA, adopt needed improvements, and leave enforcement actions against violators to ESA.

·        The proposed shift does not address, and would exacerbate, real areas of concern.  This shift does not address the real problems with the labor certification programs: a lack of adequate funding, problems in program administration, and long delays in which U.S. employers now must wait three to four years in many parts of the country before applications are processed.  The attestation proposal that DOL currently is proposing (and which ETA developed) could address some of these concerns, and should be operated within ETA.  A switch to ESA would only exacerbate problems.  The end result would be that U.S. business would face further difficulties in acquiring vitally needed foreign-national workers.

·        DOL has neglected to implement procedures that would improve the administration of the alien labor certification programs and help get this program back on track.  While maintaining this program within ETA, DOL needs to improve program administration.  Options for such improvement include increasing the number of occupations designated as “shortage occupations” (known as Schedule A occupations), expanding the use of streamlined processes based on pre-application recruitment, and recognizing actual business practices in recruitment.  Adopting these options would both improve the current program and enhance the likelihood of success of any major overhaul, including the attestation proposal.

CURRENT STATUS: Congressional appropriators must approve the DOL’s proposal.  While the appropriations subcommittees already have held hearings during which DOL testified, the appropriations bill has yet to be finalized.  Language could be inserted in either the legislation itself prohibiting funds from being used for this move, or appropriators could omit this budget item from the legislation and state in the committee report their objections to the move.  Either method would prevent the Department of Labor from carrying out its proposal.

AILA’s POSITION: While AILA believes that the labor certification process needs reform, we strongly oppose the shift in administration to Wage & Hour.  We do not believe the enforcement arm of any agency should be in charge of an adjudication function (consistent with our policy regarding INS reorganization).  Further, we believe that such a move at this time would only hamper efforts to reform the system.

 

39BS9014.1-Last Updated October 13, 1999