If you’re responsible for managing payroll compliance at your company, the Department of Labor (DOL) has introduced a significant update you must be aware of.
As of July 1, 2024, the Foreign Labor Certification (FLC) Data Center website, which has been the go-to resource for prevailing wage data, was replaced. From that date forward, all wage data has been available through the Foreign Labor Application Gateway (FLAG) website.
This shift impacts how businesses, especially those hiring foreign workers under programs like H-1B and H-2A visas, access critical wage data — but don’t worry. While the platform is new, the data hasn’t changed.
Instead, the DOL has created a more user-friendly site to streamline your compliance process. Let’s look at what’s different, what this means for your business, and how Mosey can upgrade your corporate compliance.
What Is the FLAG Website and Why the Change?
The FLAG website isn’t new, but it will now be the sole source of wage data that businesses need for labor certifications.
Previously, you used the FLC Data Center to obtain the prevailing wage data necessary for certifying permanent and temporary foreign labor. This information is still essential when hiring through H-1B or H-2A visa programs.
The good news is that the core information remains the same — it’s the platform itself that’s been revamped. The DOL has made it easier to use, with a cleaner design and tools that simplify access to wage data. Whether you’re a business leader or part of an HR manager, this change aims to save you time and effort.
How To Access Prevailing Wage Data on FLAG
If you’re wondering how this switch will affect your ability to retrieve wage data, the process is similar to what you’re used to, but with some added benefits.
On the FLAG website, you’ll find a section for this data located in the “Wage Data” tab. Just like before, you’ll need to enter details specific to the job you’re trying to fill, such as the occupation and location. From there, the site will pull up relevant wage data.
It’s important to note that this change affects businesses across numerous industries, from tech companies applying for H-1B visas to agricultural employers needing H-2A workers.
For all types of foreign labor certification, you must still ensure wages meet the Department of Labor’s requirements. The data you access through FLAG will ensure your company stays compliant, but now with a more streamlined experience.
What Does This Change Mean for H-1B Employers?
Employers who sponsor foreign workers through the H-1B program must pay close attention to this transition. Like the H-2A program, H-1B visas require you to meet wage requirements, and the FLAG site is now the source of that data.
Whether you’re hiring engineers, IT specialists, or healthcare workers, it’s your responsibility to confirm that their wages meet or exceed the prevailing wage in their occupation and geographic area. The FLAG website provides this information in an easy-to-access format, ensuring you comply with DOL standards.
It’s worth noting that while the H-1B program is competitive, compliance is non-negotiable. Using the correct wage data helps you avoid penalties while attracting and retaining the talent your business needs to succeed. The switch to FLAG simplifies this process, giving you quicker access to the data you need to remain compliant.
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What Is the Impact of This Change on H-2A Employers?
There’s another piece to consider for those in agriculture, especially if you hire H-2A workers. The Department of Labor requires that employers pay foreign agricultural workers a wage that doesn’t adversely affect U.S. workers. This is known as the Adverse Effect Wage Rate (AEWR), and it’s a critical figure in compliance.
The new FLAG website will also be your source for AEWR data. While the method for calculating AEWR hasn’t changed, the shift to FLAG will make it easier to find these figures and ensure you’re paying the correct rates.
AEWR calculations are different depending on the job. For field and livestock workers (who make up the majority of H-2A positions), the AEWR is based on data from the U.S. Department of Agriculture’s Farm Labor Survey. For other agricultural roles, the rate is determined using information from the Bureau of Labor Statistics (BLS).
No matter if you’re hiring farm workers or heavy equipment operators, FLAG is where you now go to get wage data. If you’re managing compliance across multiple states, FLAG’s tools can also help you easily access state-specific information.
Why Is the FLAG Website a More User-Friendly Experience?
Switching platforms can feel like a headache, but the move to FLAG has many perks. For one, the DOL designed the site with usability in mind, aiming to reduce the time you spend accessing the system and retrieving data.
This update will benefit you if your company has been operating across multiple states or hiring employees in remote locations. The FLAG site allows you to gather wage data specific to your industry and state, which is crucial for making informed decisions about compensation and staying compliant.
For instance, some states have specific salary transparency laws, such as New York, which require you to disclose salary ranges in job postings. With FLAG, you can quickly access the wage data you need to meet those requirements, ensuring you don’t run into compliance issues down the road.
Additionally, the site includes features like email notifications and updates on wage changes. You’ll receive automatic alerts when new wage data is available or regulations are updated. That way, you’re always in the loop.
How Does FLAG Ensure Continued Compliance?
Wage data compliance is constantly evolving, and tracking these changes is a must for any business that hires foreign workers. The move to FLAG is part of a broader effort by the DOL to make compliance easier for employers while still upholding strict wage standards.
By transitioning to a more intuitive platform, the DOL aims to help businesses with wage data challenges. Regardless of who you’re hiring, meeting wage requirements is necessary to maintain compliance and avoid penalties.
While the platform has changed, the fundamental data remains the same. The FLAG website offers a better user experience, and if you take the time to familiarize yourself with the platform, you’ll find that switching over is easy.
Master Compliance With Mosey
As of July 1, 2024, the transition to the FLAG website is complete, and businesses are now required to use it for all prevailing wage data. If you haven’t already, you should familiarize yourself with FLAG’s features to confirm you’re accessing the correct wage data for compliance.
Take some time to explore the FLAG site and integrate it into your existing processes. Whether you’re managing wages for agricultural workers, tech employees, or healthcare professionals, FLAG is your central hub for wage information.
If keeping up with compliance changes feels overwhelming, Mosey can help. Our compliance management platform streamlines your multi-state operations by tracking evolving requirements and making sure you stay up to date. Schedule a free consultation with Mosey to learn how we can simplify your compliance management and help your business run smoothly.
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