Change in Authorized PERM Signatory at Audit

The Board of Alien Labor Certification Appeals (BALCA) recently reversed a Permanent Employment Certification (PERM) denial involving a change in the PERM application’s signatory at the time of an audit. The facts and legal issues of the case are summarized below based on public records. Please note that Sharma Law Offices, LLC did not represent the employer during any stage of the case. The purpose of this article is to inform our existing and potential clients and should not be taken in any way as legal advice.

An employer filed a Form ETA 9089, otherwise known as PERM application, listing the president of the company as the signatory. During an audit, the U.S. Department of Labor (DOL) requested an original signed copy of the Form ETA 9089. In response to the audit, the employer modified the Employer’s Declaration section to reflect a new signatory and submitted it with the audit response.

Upon reviewing the audit response, the DOL denied the PERM application concluding that the employer substantially failed to respond to the audit as the person signing the Form ETA 9089 had changed from the initial PERM application.

The employer filed a request for reconsideration of the denial with the DOL, specifying the authorized signatory had changed and that the new signatory had the case-specific knowledge to make the attestations on the PERM application. The DOL certifying officer (CO), however, interpreted the relevant regulation to require that such explanations can only be made at the time of responding to the audit and that the employer’s request for reconsideration and explanations could not be taken into consideration at the time of reconsideration. The employer refused to accept this DOL’s decision and appealed the denial to BALCA.

Upon reviewing the facts of the case, BALCA disagreed with the CO on the exclusion of the employer’s evidence and explanation at the time of request for reconsideration. BALCA held that if the circumstances of an audit do not alert the employer to the potential deficiency, and the evidence is not standard, the CO cannot block admission of evidence at reconsideration. BALCA found that the circumstances of the audit did not alert the employer to the fact that the change in signatory could be viewed as a deficiency and that it is not standard to provide an explanation for such changes. BALCA concluded that there was no reason for the employer to provide a copy of the Form ETA 9089 signed by the signatory listed in the initial PERM application. Accordingly, BALCA reversed the denial of the PERM and remanded it for certification.

Although the PERM application was certified eventually, it was delayed by a simple change of the authorized signatory. There is no “harmless” error in PERM filing. The smallest detail can be crucial in obtaining certification. It is important to have an experienced and dedicated attorney handle your PERM applications.