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Federal Register / Vol. 86, No. 91 / Thursday, May 13, 2021 / Rules and Regulations rules higher prevailing wage rates would disrupt foreign workers contributions towards companies growth or the stability of the U.S.
economy. Other commenters stated that the wage level changes will result in significant wage increases for businesses, such that the delay is necessary to provide employers the time to adjust businesses practices and payroll details.
Some commenters supported the delay because, in their view, the Final Rule unfairly preferences foreign workers by requiring employers to discriminate against U.S. workers by paying foreign workers higher salaries for doing the same work. Other commenters supported delaying the rule on the basis that it is unfair to immigrant and non-immigrant workers and negatively impacts guest workers from certain countries. One commenter remarked that the delay would send a positive message to high-skilled foreign workers, including those interested in pursuing careers in STEM fields, and would improve the United States competitive edge by enhancing the nations ability to attract and maintain talented workers. Lastly, several commenters expressed support for the delay because of their concern that the Final Rule would make it more difficult for them to secure an H1B visa, an outcome the commenters stated would force them to return to their countries of origin.
The Department acknowledges the concerns expressed by commenters regarding the impact of the Final Rule on U.S. and foreign workers, including those seeking entry-level or senior positions. The Department endeavors to protect the wages and working conditions of both U.S. and foreign workers, and the concerns raised by these commenters suggest that the Department needs to take additional time to review this rulemaking to ensure that it accomplishes this goal. In terms of the suggestions that commenters provided on the appropriate wage level, the Department appreciates the recommendations and encourages commenters to submit relevant information on the sources of data and methodologies for determining prevailing wage levels by commenting on its recently-issued RFI, whose comment period closes on June 1, 2021.
c. Impact of Not Delaying the Rule on Industries and Business Processes Several individual commenters remarked that the economic challenges associated with higher prevailing wage rates would disproportionately impact small and medium businesses or start-

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up companies because they are less capable of affording significant salary increases than larger companies. An advocacy organization supported the proposed delay, arguing that the delay would avoid the significant business disruptions that the Final Rule would introduce.
Many commenters stated that the rule will affect high-paying industries such as the IT industry to a lesser extent, while other commenters stated that the rule may potentially harm technology companies and an individual commenter expressed the belief that even large companies will not be able afford the wage increases required by the rule, particularly during the COVID
19 pandemic. An individual commenter remarked that the Final Rule would negatively impact growth in creative industries because individuals, such as artists, would be unable to secure jobs with wages that meet the rules increased prevailing wage rates.
An anonymous commenter stated that immigration officials and lawyers need more time to prepare for the new regulations. Likewise, a professional association commented that adopting the proposed delay would help make the transition less chaotic and confusing for both businesses and employees by affording more time for practical and systematic changes necessary to implement the Final Rule. Similarly, a trade association in favor of the delay said it would help employers avoid significant near-term logistical and operational challenges. Lastly, an individual commenter agreed that the 18-month delay was needed to afford the BLS and OFLC additional time to compute and review prevailing wage estimates, including integrating prevailing wage data into the Foreign Labor Certification Data Center system and FLAG system upon conclusion of the Departments review.
The Department appreciates the comments received regarding the rules potential impact on businesses and the need to afford BLS and OFLC sufficient time to compute and review prevailing wage estimates if the Department ultimately implements the Final Rule.
The Department takes seriously the possible effect that this rule will have on business operations, especially new, small, and medium-sized businesses.
This delay will allow the Department to more closely review the rules impact on the regulated community and employers of varying sizes who use the PERM, H1B, H1B1, or E3 programs.

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d. Impact of the COVID19 Pandemic as an Additional Consideration To Delay the Rule Many commenters stated that the Final Rule needed to be delayed due to the COVID19 pandemic. For example, several individual commenters expressed concern that more immediate implementation of the Final Rule would negatively impact the U.S.s economic recovery, such as by causing attrition or turnover in the workforce. One of these commenters added that such impacts would be especially harmful to the IT
industry, which they said is an important element of the U.S. economy.
Relatedly, an anonymous commenter remarked that H1B workers help develop innovative software and other tools that keep the United States competitive in the global economy and such workers would be difficult to replace quickly. Other individual commenters asserted that without more time, current and prospective foreign workers and sponsor companies hard hit by the pandemic would have trouble adjusting to the Final Rule. One of the commenters reasoned, without additional explanation, that the proposed delay would make enforcement of the rule easier should it ultimately go into effect.
Commenters also explained that the U.S. economy is still recovering from the impact of the pandemic and delaying the rule will allow businesses time to recover and adjust to changes in the computation of prevailing wage levels should the Department decide to implement the rule after its review. The commenters generally agreed that allowing the rule to go into effect or be implemented now, in the midst of the countrys pandemic recovery, would be detrimental to employers and would negatively affect workers. For example, one commenter noted that the U.S.
economy is still recovering from COVID and it is almost impossible for new graduates and entry level employees to obtain reasonable wage levels due to COVID, such that not adopting the proposal would result in loss of talent and further harm the economy already in distress. Another commenter stated, Companies already struggling economically in the wake of COVID will not be able to afford these wages.
The Department appreciates the concerns raised by the commenters regarding the timing of the rule during the countrys pandemic recovery, and think that they further support the decision to delay the Final Rule.

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