Prevailng Wage Policy Guidance

The implementation of the H-1B Reform Act and the publication of the PERM regulation necessitate the need to issue policy clarification and procedural guidance to the State Workforce Agencies. The guidance provides the step-by-step procedure for selecting the appropriate wage level for prevailing wage purposes.

The links below are for PDF versions of the Full Guidance Document, and for specific appendicies that are included in the full document but may be useful as seperate downloads.

This page and the links below reflect the May 9, 2005 revision to the Prevailing Wage Policy Guidance.

Prevailing Wage Determination Policy Guidance for Nonagricultural Immigration Programs (full document and appendicies)
Appendix A: OES Prevailing Wage Guidance
Appendicies B & C: Checklist and Worksheet for Use in Determining OES Wages

OES Prevailing Wage Guidance - Determining Occupation and Skill/Wage Level

(This document reproduces Appendix A from the Guidance Documents linked above.)

All employer applications for a prevailing wage determination shall initially be considered an entry level or Level I wage. The employer's requirements for experience, education, training, and special skills shall be compared to those generally required for an occupation as described in O*NET and shall be used as indicators that the job opportunity is for an experienced (Level II), qualified (Level III), or fully competent (Level IV) worker and warrants a prevailing wage determination at a higher wage level.

All prevailing wage determinations start with a Level I determination. For that reason the Check Sheet has a 1 entered in the Wage Level Column.

Step 1 – Enter the O*NET Requirements on the Worksheet

• Use the O*NET OnLine Find Occupations feature (http://online.onetcenter.org) to determine the appropriate O*NET-SOC code based on the job title provided on the prevailing wage determination request form.
• Enter the job title from the employer’s job offer into the Quick Search box and click on Go. 
• Select the O*NET occupation that most closely matches the employer’s request from the resulting list of occupations. 
• Review the Tasks, Knowledge, Work Activities and Job Zone information contained in the O*NET summary report to gain an understanding of what is generally required for vocational preparation and performance in that occupation.

Enter the O*NET education and experience requirements on the Worksheet.

Step 2 – Complete the Experience Section of the Worksheet

Compare the overall experience described in the O*NET Job Zone to the years of experience on the prevailing wage determination request form.

For occupations contained in Job Zone 1, if the employer’s experience requirement is equivalent to that described in an:

• SVP of 1 (experience requirement of a short demonstration), enter a 0 in the Wage Level Column 
• SVP of 2 (experience requirement of anything beyond short demonstration and up to 1 month), enter a 1 in the Wage Level Column 
• SVP of 3 (experience requirement of over 1 month up to and including 3 months), enter a 2 in the Wage Level Column 
• SVP of 4 (experience requirement of over 3 months up to and including 6 months), enter a 3 in the Wage Level Column

Refer to Appendix E: Specific Vocational Preparation (SVP) for an explanation of the experience requirements related to an SVP level.

For occupations in Job Zones 2 through 5, if the employer’s experience requirement is:

• At or below the level of experience and experience and SVP range, make no entry in the Wage Level Column.
• In the low end of the experience and SVP range, enter a 1 in the Wage Level Column.
• In the high end of the experience and SVP range, enter a 2 in the Wage Level Column.
• Greater than the experience and SVP range, enter a 3 in the Wage Level Column

Points should be added for the amount of experience only if the required work experience is above the starting point of the O*NET job zone range. Education required for the job is addressed in Step 3 of the worksheet, and therefore the years of education required should not be considered in Step 2. However, if education is considered as an equivalent amount of experience in Step 2, it should not also be considered in Step 3.

Step 3 – Complete the Education Section of the Worksheet

Compare the education requirement generally required for an occupation to the education requirement in employer’s job offer.

Determine if the level required by the employer’s job offer is greater than what is generally required.

Professional Occupations by O*NET-SOC category and the related education and training category code are listed in Appendix A to the Preamble of the regulations. The education and training categories assigned to those occupations shall be considered the usual education and training required when considering the education level for prevailing wage determinations. A listing of occupations designated as professional occupations and the related education and training category can be found in Appendix D of this document.

For professional occupations:

• If the education required on the prevailing wage determination request form is equal to or less than the usual education contained in Appendix D by one category, make no entry in the Wage Level Column.
• If the education required on the prevailing wage determination request form is more than the usual education contained in Appendix D by one category, enter a 1 on the worksheet in the Wage Level Column.
• If the education required is more than the usual education contained in Appendix D by more than one category, enter a 2 on the worksheet in the Wage Level Column.

Example: If the occupation generally requires a Bachelor’s degree and the employer’s job offer requires a Master’s degree, enter a 1; if the job offer requires a Ph.D. enter a 2.

For all other occupations use the education level for what ‘most of these occupations’ require or ‘these occupations usually require’ described in the O*NET Job Zone for that occupation.

• If the education or training is equal to or less than what ‘most occupations require’ or the level that these occupations ‘usually’ require, make no entry on the worksheet in the Wage Level Column.
• If the education or training is more than what ‘most occupations require’ or the level that these occupations ‘usually’ require, enter a 1 on the worksheet in the Wage Level Column.
• If the education or training required on the prevailing wage determination request form is more than the level described by what ‘some may require’, enter a 2 on the worksheet in the Wage Column.

Experience requred for the job is addressed in Step 2 of the worksheet, and therefore the years of experience required should not be considered in Step 3.

Step 4 – Complete the Special Skills, Knowledge, Work Activity or Tasks Section of the Worksheet

• Review the job title, job description (duties) and special requirements on the prevailing wage determination request form to identify the tasks, work activities, knowledge and skills required. An employer's requirement for an occupational license and/or certification should be evaluated to determine if they are indicators of a requirement for special skills warranting the award of a point or points on the worksheet. They may not necessarily be such an indicator.
• Make note of machines, equipment, tools or computer software used. Match those identified to the O*NET Tasks, Work Activities, Knowledge, and Job Zone Examples.Consider whether the employer's requirements indicate the need for skills beyond those of an entry-level worker.
• In situations where the employer's requirements are not listed in the O*NET Tasks, Work Activities, Knowledge, and Job Zone Examples for the selected occupation, then the requirements should be evaluated to determine if they represent special skills. The requirement of a specific skill not listed in the O*NET does not necessitate that a point be added. If the specific skills required for the job are generally encompassed by the O*NET description for the position, no point should be added. However, if it is determined that the requirements are indicators of skills that are beyond those of an entry level worker, consider whether a point should be entered on the worksheet in the Wage Level Column.

Note: A language requirement other than English in an employer’s job offer shall be considered a special skill for all occupations with the exception of Foreign Language Teachers and Instructors, Interpreters and Caption Writers, and a point should be entered on the worksheet.

It is recognized, however, that there may be circumstances where a foreign language is required for the job, but that requirement does not sufficiently increase the seniority and complexity of the position such that a point must be added for the foreign language requirement (e.g. Specialty Cooks).

• If the employer's job opportunity requires the possession of a license or certification, the SWA must give careful consideration to the occupation in question and the education, training, and experience requirements of the license or certification to evaluate whether possession of a license or certification is an indicator that the offer of employment is for an experienced worker.
• An employer's requirement for the possession of an occupational license or certification does not constitute a situation where a point must automatically be awarded. The SWA should look at the employer's job description and stated requirements to evaluate, along with other factors, whether the position is closely supervised, involves only moderately complex duties, and allows limited exercise of independent judgment. If the license or certification is a normal requirement to perform the job duties as an entry level worker, no point should be added on the worksheet in the Wage Column, e.g., attorney, teacher, registered nurse.
• Some occupations have more than one license and the requirements of the license provide an indicator of the level of independent judgment and complexity of tasks required of the licensee, e.g. Journeyman Plumber or Master Plumber. The SWA must consider the education, training and experience requirements of the license or certification to determine when points should be entered on the worksheet in the Wage Column.

If a substantial amount of work experience, education or training is required to obtain a license or certification and this results in the total amount of necessary work experience being on the high end of the O*NET job zone range, a point could be added either in Step 2 for the work experience, or Step 3 for the education or training, or in Step 4 for the license. A point or points should not be added in every step.

Step 5 –Complete the Supervisory Duties Section of the Worksheet

• Review the prevailing wage determination request form to determine the number or range of people to be supervised to determine if there is a supervisory requirement; and
• If the number is greater than 0, then enter a 1 on the worksheet in the Wage Level Column.

Exception: If supervision is a customary duty for the O*NET occupation, e.g. First-line Supervisors /Managers occupations, do not enter a 1 on the worksheet in the Wage Level Column.

Note: Previous guidance suggested that an employer’s job offer that included supervisory duties should be assigned the higher of the two previous wage levels. In this new guidance an employer’s job requirement for supervisory duties will not automatically warrant a determination of the highest wage level. The guidance contained above for evaluating education, experience and skills required in an employer’s job offer should be used to determine the appropriate wage level for supervisory occupations.

Determine the wage level by summing the numbers in the Wage Level Column of the worksheet. The sum total shall equal the wage for the prevailing wage determination. If the sum total is greater than 4, then the wage level shall be Level 4.

The process described above should not be implemented in an automated fashion. The SWA must exercise judgment when making prevailing wage determinations. The wage level should be commensurate with the complexity of tasks, independent judgment required, and amount of close supervision received as described in the employer's job opportunity.

Skill Level In Older Wage Determinations

(This text refers to wage determinations for data years 2004 and earlier)

The level of skill required by the employer for the opportunity is to be considered in making prevailing wage determinations. The OES wage survey will produce two wage levels which distinguish between positions requiring significantly different degrees of skills in the occupation. The SESA will determine which of the two levels in the OES survey is appropriate, i.e., a distinction must be made based on whether or not the job opportunity involved in the employer's job offer requires skills at a level I or a level II, as defined below.

To establish uniformity among SESAs in evaluating surveys and making prevailing wage determinations within the resources available for immigration programs, prevailing wage rates for the skill levels described below should be determined in an occupation when the SESA makes a prevailing wage determination.

Level I

Beginning level employees who have a basic understanding of the occupation through education or experience. They perform routine or moderately complex tasks that require limited exercise of judgement and provide experience and familiarization with the employer's methods, practices, and programs. They may assist staff performing tasks requiring skills equivalent to a level II and may perform higher level work for training and developmental purposes. These employees work under close supervision and receive specific instructions on required tasks and result expected. Work is closely monitored and reviewed for accuracy.

Level II

Fully competent employees who have sufficient experience in the occupation to plan and conduct work requiring judgment and the independent evaluation, selection, modification and application of standard procedures and techniques. Such employees use advanced skills and diversified knowledge to solve unusual and complex problems. They may supervise or provide direction to staff performing tasks requiring skills equivalent to level I. These employees receive only technical guidance and their work is reviewed for application of sound judgement and effectiveness in meeting the establishments procedures and expectations.

If a baccalaureate degree is normally required for entry into the occupation, the wage rate for a job offer in that occupation which requires an advanced degree (Master or Ph.D.) shall be rate for workers performing tasks requiring skills at a level II. In this case, the requirement for advanced education substitutes for the skills required at a level II. Where an advanced degree is normally required for entry into the occupation, the wage rate for a job offer in that occupation which requires such a degree shall be rate for workers performing tasks requiring skills at a level I, unless there are other requirements contained in the job offer or components thereof which require skills that are at level II. For example, a job opportunity for a librarian, an occupation for which a Master's degree is normally required for entry into the occupation, would generally be considered to require skills at a level I, unless other requirements in the job offer or components thereof require skills at a level II.

Where State licensure is required for an individual to independently perform all of the duties encompassed by the occupation, such workers shall be considered to be performing work requiring skills at a level II, unless the employer can present sufficient evidence that the alien does not, in fact, independently perform all of the duties encompassed by the occupation.