dismissed EB-3 Case: Beauty Services
Decision Summary
The appeal was dismissed for two primary reasons. First, the petitioner, a sole proprietorship, failed to demonstrate the ability to pay the proffered wage, as the owner's personal tax returns and business bank statements showed insufficient funds. Second, the labor certification did not support the EB-3 skilled worker classification because it only required one month of experience, falling short of the statutory minimum of two years of training or experience.
Criteria Discussed
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MATTER OF L-C-N-A-S- Non-Precedent Decision of the Administrative Appeals Office DATE: NOV. 16.2017 APPEAL OF NEBRASKA SERVICE CENTER DECISION PETITION: FORM I-140, IMMIGRANT PETITION FOR ALIEN WORKER The Petitioner, a beauty salon, seeks to employ the Beneficiary as a manicurist and pedicurist. It requests the Beneficiary's classification as a skilled worker under the third-preference. immigrant category. See Immigration and Nationality Act (the Act) section 203(b)(3)(A)(i). 8 U.S.C. § 1153(b )(3)(A)(i). This employment-based, "'EB-3'" category allows a business to sponsor a foreign national for lawful permanent residence status in a position requiring at least two years of training or expenence. The Director of the Nebraska Service Center denied the petition. finding that the accompanying employment certification from the U.S. Department of Labor (DOL) did not support the requested classification. The Director also concluded that the Petitioner did not establish its required ability to pay the proffered wage. On appeal, the Petitioner submits additional evidence and asserts its ability to pay the protlered wage. Upon de novo review, we will dismiss the appeal. I. THE EMPLOYMENT-BASED IMMIGRATION PROCESS Employment-based immigration generally follows a three-step process. First. an employer applies for certification from DOL. See section 212(a)(5)(A)(i) of the Act, 8 U.S.C. § 1182(a)(5)(A)(i). DOL must determine whether the United States has able. willing. qualified, and available workers for an offered position, and whether employment of a foreign national would hurt the wages and working conditions of U.S. workers with similar jobs. !d. If DOL certifies a foreign national to permanently fill an offered position, an employer must next submit the ce11itication with an immigrant visa petition to U.S. Citizenship and Immigration Services (USCIS). S'ee section 204 of the Act. 8 U.S.C. § 1154. If USCIS approves the petition. a foreign national may finally apply tor an immigrant visa abroad or, if eligible. adjustment of status in the United States. See section 245 of the Act. 8 U.S.C. § 1255. Matter qf L-C-N-A-S- II. THE PETITIONER'S ABILITY TO PAY THE PROFFERED WAGE A petitioner must demonstrate its continuing ability to pay a proffered wage, from a petition· s priority date until a beneficiary obtains lawful permanent residence. 1 8 C.F.R. ~ 204.5(g)(2). Evidence of ability to pay must include copies of annual reports. federal income tax returns. or audited financial statements. ld In determining ability to pay, USCIS considers whether a petitioner paid a beneficiary the full proffered wage each year from a petition's priority date. If a petitioner did not annually pay the full proffered wage, USC IS examines whether the petitioner generated annual amounts of net income or net current assets sufficient to pay any differences between the protTered wage and wages paid. If net income and net current assets are insut1icient. USCIS may also consider other factors affecting a petitioner's ability to pay a proffered wage. See Maller ofSonegawa. 12 l&N Dec. 612, 614-15 (Reg'l Comm'r 1967).2 Here, the labor certification states the proffered wage of the offered position of manicurist and pedicurist as $11 per hour. Based on a 40-hour work week, the annual protTered wage is $22,880. The Petitioner did not submit evidence that it paid the Beneficiary. The Petitioner therefore has not established its ability to pay the proffered wage based on wages paid. On appeal, the Petitioner submits a copy of the federal income tax returns of its owner for 2016. the year of the petition's priority date. As a sole proprietorship, the Petitioner is legally inseparable from its owner. See Matter (?f United lnv. Grp., 19 l&N Dec. 248, 250 (Comm 'r 1984) (holding that a sole proprietorship is not a separate legal entity from its owner). We therefore consider the personal income and assets of the Petitioner's owner to determine its ability to pay the proffered wage. The 2016 tax returns indicate that the Petitioner's owner financially supported herself and three children on adjusted gross income of $16,782. Thus, the returns indicate that the owner lacked sufficient income to pay the annual protTered wage of $22,880. 3 The Petitioner therefore has not established its ability to pay the protTered wage based on its owner's income. 1 This petition's priority date is August 22, 2016, the date the DOL received the labor certification application. See 8 C.F.R. § 204.5(d) (explaining how to detennine a petition's priority date). 2 Federal courts have upheld our method of determining a petitioner's ability to pay a proffered wage. See. e.g .. River St. Donuts, LLC v. Napolitano, 558 F.3d Ill, 118 (I st Cir. 2009); Estrada- Hernandez v. Holder. I 08 F. Supp. 3d 936, 942-43 (S.D. Cal. 20 15). 3 The Petitioner did not provide an estimate of its owner's household expenses in 2016, which USC IS would subtract fi'om her income and assets in order to assess the Petitioner's ability to both support herself and her dependents and pay the proffered wage. See Ubeda v. Palmer, 539 F. Supp. 647, 650 (N.D. Ill. 1982). aff'd, 703 F.2d 571 (7th Cir. 1983) (finding that a petitioner with annual net income of $13,000 could not likely support himself, his spouse, and five children in addition to paying a proffered wage of $6,000 a year). In any future filings in this matter, the Petitioner must submit an estimate and supporting documentary evidence of the 2016 living expenses of its owner and her dependent children. Estimated expenses should include: housing; utilities; food: transportation; clothing: and insurance. 2 Matter of L-C-N-A-S- The Petitioner also submits evidence of assets in its business checking account from August 2016 through March 2017. The business income stated in the tax returns of the Petitioner's owner. however, presumably reflected the deposits and withdrawals detailed in the monthly account statements for 2016. Because we likely considered these funds as part of the owner's income. we will not count them again as assets supporting the Petitioner's ability to pay the proffered wage. Also, because of the cyclical nature of many businesses. the remaining account statements for the first three months of 2017 do not document a sufficient period to establish the Petitioner's ability to pay that year. Moreover, the account statements do not indicate sufficient net deposits to pay the protlered wage. From August 2016 through March 2017, the statements reflect $114,876 in total deposits and $110,733.64 in total withdrawals and fees, leaving a balance of $4,142.36. The proffered \Vage. however, equates to $1,906.67 a month, or $15,253.33 for the eight-month period. The account statements therefore do not establish the Petitioner's ability to pay the protlered wage for any period of time. As previously indicated, factors beyond net income and net current assets may establish a petitioner's ability to pay. Under Sonegmva. we may consider: the number of years a petitioner has conducted business; the growth of its business; its number of employees; its incurrence of uncharacteristic expenses; its reputation in its industry; a beneficiary's replacement of a current employee or outsourced service; or other evidence of a petitioner's ability to pay a proffered wage. Here, the petition indicates the Petitioner's continuous business operations since 2012 and its employment of four people. Because the Petitioner provided financial documentation for only one year, however, the record does not establish growth in its business. Also, unlike the petitioner in Sonegawa, the record does not indicate the Petitioner's incurrence of uncharacteristic expenses or its possession of an outstanding reputation in its industry. The record also does not indicate the Beneficiary's replacement of a current employee or outsourced service. Thus. the SoneKawa factors do not establish the Petitioner's ability to pay the proffered wage. The Petitioner has not demonstrated its ability to pay the proffered wage from the petition's priority date onward. We will therefore affirm the petition's denial. III. THE LABOR CERTIFICATION AND THE REQUESTED CLASSIFICATION Unless accompanied by an application for Schedule A designation or documentation of a beneficiary's qualifications for a shortage occupation, a petition for a skilled worker must include a valid, individual labor certification. 8 C.F.R. § 204.5(1)(3)(i). A labor certification for a skilled worker must state job requirements of at least two years of training or experience. 8 C.F.R. § 204.5(1)(3)(ii)(B). To determine the minimum job requirements of an offered position, USCJS must examine the job offer portion of a labor certification. USCIS may neither ignore a term on a certification, nor impose 3 Matter of L-C-N-A-S- additional requirements. See. e.g., Tongatapu Woodcrafi Haw .. Ltd. v. Feldman. 736 F.2d 1305. 1309 (9th Cir. 1984) (holding that immigration authorities are "bound by the DOL's certification"). Here, the record does not establish the labor certification's requirement of at least two years of training or experience. The labor certification states the minimum requirements of the offered position of manicurist and pedicurist as "beauty school'' education and one month of experience in the job otTered. Contrary to the minimum criteria for skilled workers. the labor certification requires no training and less than two years of experience for the offered position. For skilled-worker classification purposes, relevant post-secondary education may qualify as training. 8 C.F.R. § 204.5(1)(2) (defining the term ''skilled worker"). But the labor certification here does not specify whether the beauty school education must be post-secondary, or the required amount of the education. The record therefore does not establish that the proffered position, as certified by DOL, requires at least two years of training. On appeal, the Petitioner does not address this denial ground. Therefore, as the Director found. the record does not establish the labor certification's support for the requested classification. IV. CONCLUSION The record on appeal does not establish the Petitioner's ability to pay the profTered wage or the labor certification's support for the requested classification. We will therefore affirm the petition's denial. ORDER: The appeal is dismissed. Cite as Matter ofL-C-N-A -S-, ID# 835449 (AAO Nov. 16, 20 17) 4
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