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A fundamental part of the PERM process involves obtaining a prevailing wage determination from the U.S. Department of Labor (DOL). The PERM prevailing wage is defined by the DOL as the average wage paid to similarly employed workers in a specific occupation in the area of intended employment.
Prevailing wage in an area can be determined by surveying local employers and calculating the wage by a simple average or, more accurately, by a weighted average, which weights the wage results by the number of employees.
The prevailing wages are determined based on wages paid to various classes of laborers and mechanics employed on specific types of construction projects in an area.
Benefit contributions must be deposited on at least a quarterly basis. Basic Annualized Calculation Method: Divide the total yearly contributions made by the employer for each individual worker by 2,080 hours (40 hours per week X 52 weeks = 2,080 hours).
Prevailing wage overtime must be calculated on the sum of all work for the day, regardless of the job site. For example, if the worker spends three hours at a private job site and then six hours at a public works project, the worker is due overtime. The overtime rate is determined by the job classification.
The hourly value for 'paid time off' would be calculated as follows: hourly wage rate X 8 hours per day X total number of paid days off divided by 2080 hours. For example: $16.00 per hour wage rate X 8 hours per day = $128.00. $128.00 × 5 paid days off = $640.00. $640.00 divided by 2080 hours = $0.31 per hour.
In order to file the PERM application, it is necessary to obtain a prevailing wage determination (PhD) from the DOL. This establishes the appropriate minimum wage level required for the position. Wage determinations take approximately six weeks, as of this writing.
Once the initial planning step is complete, employers will typically request a prevailing wage determination (PhD) from DOL. As of 2019, processing of Pads takes about four months.
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