dismissed
EB-3
dismissed EB-3 Case: Janitorial Services
Decision Summary
The motion to reconsider and reopen was denied because the petitioner, which changed from a sole proprietorship to an LLC, failed to establish it was a valid successor-in-interest, rendering the original labor certification invalid for the new entity. Additionally, the petitioner failed to submit sufficient evidence to demonstrate a continuing ability to pay the proffered wage, as required.
Criteria Discussed
Ability To Pay Successor In Interest Labor Certification Validity Motion To Reopen Motion To Reconsider
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U.S. Citizenship
and Immigration
Services
MATTER OF R-D-S-, LLC
Non-Precedent Decision of the
Administrative Appeals Office
DATE: OCT. 4, 2017
MOTION ON ADMINISTRATIVE APPEALS OFFICE DECISION
PETITION: FORM I-140, IMMIGRANT PETITION FOR ALIEN WORKER
The Petitioner, a sole proprietorship that provided janitorial services. sought to employ the
Beneficiary as a supervisor. It requested his 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 U.S.
businesses to sponsor foreign nationals for lawful permanent resident status if they have at least two
years of training or experience.
The Director of the Vermont Service Center denied the petition, concluding that the Petitioner did
not demonstrate its required ability to pay the proffered wage. On appeal, we withdrew the decision
and remanded the matter for additional fact-finding. After assuming jurisdiction over the petition on
remand, the Director of the Nebraska Service Center found additional evidence submitted by the
Petitioner insufficient to establish its ability to pay. 1 The Director also found the labor certification
accompanying the petition invalid because the sole proprietorship had ceased operations. 2 As we
requested, the Director certified his denial for our review. On certification. we affirmed the
decision. See Matter ofR-D-S-. LLC, ID# 119769 (AAO Mar. 17. 2017).
Now before us on the Petitioner's combined motions to reopen and reconsider, the Petitioner submits
additional evidence of its claimed ability to pay the protTered wage. It also asserts that its cleaning
business continues to operate and that its job offer to the Beneficiary endures.
Upon review, we will deny the motions.
1 The Nebraska Service Center adjudicated this petition on remand because, as of April I, 2006, the Vermont Service
Center stopped processing employment-based petitions. See USCIS News Release, ·'USCIS Notifies Employers of
Filing Changes" (Mar. 24, 2006), https://preview.uscis.gov/sites/default/files/tiles/pressrelease/BiSpccPhO I_
24Mar06PR.pdf (last visited Sept. 6, 20 17).
2 Generally, before U.S. Citizenship and Immigration Services (USCIS) may accept a skilled worker petition, the U.S.
Department of Labor (DOL) must certify that the United States lacks able, willing, qualified, and available workers for
the offered position and that the employment of a foreign national will not harm the wages and conditions of U.S.
workers similarly employed. Section 212(a)(5)(A)(i) of the Act, 8 U .S.C. ~ 1182a)(5)(A)(i).
Matter of R-D-S-, LLC
I. LAW
A motion to reopen must state new facts, supported by documentary evidence. 8 C.F.R.
§ 1 03.5(a)(2). A motion to reconsider must establish that, based on the record at that time. our prior
decision misapplied law or policy. 8 C.F.R. § 1 03.5(a)(3). A motion to reconsider must also be
supported by a pertinent precedent or adopted decision, statutory or regulatory provision, or
statement ofUSCIS or Department of Homeland Security policy. We may grant motions that satisfy
these requirements and demonstrate eligibility for the requested immigration benefit.
II. ANALYSIS
A. The Motion to Reconsider
In its motion to reconsider, the Petitioner asserts that the accompanying labor certification remains
valid because the offered and certified positions are the same. The Petitioner"s sole proprietor
opened a cleaning business 37 years ago and states: '·It has been a family business with me as the
head since then." Although the business has expanded, he states that it continues to provide the
same janitorial services in the same geographical area. The business now operates as a limited
liability company (LLC), with an address and federal employment identification number different
than the sole proprietorship's. But the former sole proprietor states that the job offer to the
Beneficiary remains "substantially the same."
For immigration purposes, however, the termination of the sole proprietorship changed the job
opportunity. A business may not use a labor certification unless it is the DOL-certified employer. or
it establishes itself as a successor in interest ofthe certified employer. See 20 C.F.R. § 656.30(c)(2)
(stating that a labor certification remains valid only for the "particular job opportunity"" stated on it):
see also Matter ofDial Auto Repair Shop. Inc., 19 I&N Dec. 481.482 (Comm"r 1986) (requiring a
petitioner to establish itself as a successor of a certified employer).
To establish a successor relationship, a company must: document its acquisition of rights and
obligations needed to continue the business of a certified employer: demonstrate that. except for the
change of employer, a certified job opportunity remains the same; and establish its eligibility for a
petition's approval in all respects, including the abilities of it and the certified employer to pay the
proffered wage. Matter ofDial Auto Repair Shop. 19 I&N Dec. at 482-83.
Here, the DOL-certified employer was the petitioning sole proprietorship. which legally equated to
its sole owner. See Matter (~[United lnv. Grp., 19 I&N Dec. 248,250 (Comm"r 1984) (explaining
that sole proprietorships and partnerships are indistinct from their owners). The record. however.
indicates that, while the appeal was pending in 2010, the former sole proprietor formed a Virginia
LLC that now operates the cleaning business. The LLC is a legal entity separate from the sole
proprietorship and its sole owner. See Michael E. Siska Revocable Trust v. Milestone Dev .. LLC.
715 S.E.2d 21, 28 (Va. 2011) (citations omitted) (stating that a Virginia LLC is "a legal entity
entirely separate and distinct from the shareholders or members who compose if"). Therefore, to use
2
Matter of R-D-S-, LLC
the labor certification in this matter, the LLC must establish itself as a successor of the sole
proprietorship under Dial Auto.
The Petitioner's former sole proprietor asserts that the job opportunity remains the same as certified
for a supervisor of janitorial services. As we found on appeal, however, the record does not support
that assertion. Copies of the LLC's federal income tax returns for 2010 describe the company's
services as "Residential building construction." Its 2013 federal tax returns also state its business
activity as "construction r[ e ]m[ o ]d[ e ]ling." The record therefore does not establish that the LLC
provides janitorial services as required for the certified job opportunity. See Matter o{Ho, 19 I&N
Dec. 582, 591 (BIA 1988) (requiring a petitioner to resolve inconsistencies of record by
independent, objective evidence pointing to where the truth lies).
Also contrary to Dial Auto, the record does not document the LLC's acquisition of rights and
obligations needed to continue the Petitioner's cleaning business. The record lacks copies of
agreements, contracts, or other documents indicating the LLC' s acquisition of the sole
proprietorship's business. As discussed in the following section, the record also does not
demonstrate the abilities of the LLC or the Petitioner to pay the proffered wage. The record
therefore does not establish the LLC as the Petitioner's successor.
The record on motion does not demonstrate the validity of the labor certification for the current job
opportunity. Because the motion to reconsider does not establish our prior decision's misapplication
of law or policy, we will deny the motion.
B. The Motion to Reopen
1. LLC's Ability to Pay
The Petitioner's motion to reopen includes copies of the first pages of the LLC' s federal income tax
returns for 2014 and 2015. The pages ret1ect annual net income amounts of $4,515 in 2014 and
$5,431 in 2015. These profits, however, are less than the offered position's annual proffered wage
of $24,960. The new evidence therefore does not establish the LLC' s ability to pay the profTered
wage in 2014 and 2015. See 8 C.F.R. § 204.5(g)(2) (requiring a petitioner to establish its continuing
ability to pay a proffered wage, from a petition's priority date until a beneficiary obtains lawful
permanent residence). Moreover, without the full tax returns, we cannot assess whether the LLC's
net current assets were sufficient to pay the proffered wage in these years.
Also, as we found on appeal, the record lacks required evidence of the LLC's ability to pay the
proffered wage in 2011 or 2012. !d. (requiring evidence of ability to pay to include copies of annual
reports, federal tax returns, or audited financial statements). Although, the record contains the
LLC's federal tax return for 2013, the return does not establish the LLC's ability to pay that year. as
the document reports net income and net current asset amounts less than the annual profTered wage.
.
Matter of R-D-S-, LLC
We may consider other factors atiecting a company's ability to pay beyond its net income and net
current assets. See Matter of Sonegawa, 12 I&N Dec. 612, 614-15 (Reg'l Comm'r 1967). The
Sonegawa factors, however, do not establish the LLC's ability to pay. The LLC's tax returns
indicate that its annual amounts of gross revenue and wages paid have increased since its formation
in 20 I 0. But the LLC has not operated as long as the petitioner in Sonegawa. and, as previously
indicated, the record lacks copies of the LLC's tax returns for 2011 and 2012. Also, unlike the
petitioner in Sonegawa, the LLC has not demonstrated its incurrence of uncharacteristic losses or
expenses, or its possession of an outstanding reputation in its industry. Thus, the Sonegawa factors
do not establish the LLC's continuing ability to pay. 3
2. Petitioner's Ability to Pay
The new evidence on motion also does not establish the ability of the Petitioner, as a sole
proprietorship, to pay the proffered wage. As we found on appeal, the Petitioner has not submitted
required evidence of its ability to pay in 2009. Because the Petitioner did not estimate the living
expenses of its former sole proprietor and his family, the record also does not establish its ability to
pay in 2003, the year of the petition's priority date, or from 2006 to 2009. See. e.g. Ubeda v.
Palmer, 539 F. Supp. 647 (N.D. Ill. 1982), aff"d, 703 F. 2d 571 (7th Cir. 1983) (requiring sole
proprietors, in addition to demonstrating abilities to pay proffered wages, to establish simultaneous
abilities to support themselves and their dependents).
Although unaddressed in our appellate decision, USCIS records also indicate the Petitioner's filing
of a petition for another beneficiary after this petition's priority date. 4 A petitioner must demonstrate
its ability to pay a proffered wage from a petition's priority date until a beneficiary obtains lawful
permanent residence. 8 C.F.R. § 204.5(g)(2). The Petitioner here must therefore demonstrate its
ability to pay the combined proffered wages of this and its other petition. The Petitioner must
demonstrate its ability to pay the combined proffered wages from this petition's priority date until
the other beneficiary obtained lawful permanent residence, or until the denial, withdrawal, or
revocation of his petition. See Patel v . .Johnson, 2 F. Supp. 3d 108, 124 (D. Mass. 2014) (affirming a
petition's revocation where, as of the tiling's grant, the petitioner did not demonstrate its ability to
pay combined proffered wages of multiple, pending beneficiaries).
In any future filings in this matter, the Petitioner must provide the proffered wage of its other
petition and evidence of any wages it paid the other beneficiary. The Petitioner should also indicate
whether the other beneficiary obtained lawful permanent residence, or whether his petition was
denied, withdrawn, or revoked.
3 Our appellate decision noted Virginia's cancellation of the LLC. See Va. Code Ann. § 13.1-1050.2 (20 16) (providing
for automatic cancellation of an LLC that does not timely pay an annual registration fee). The LLC, however, has since
been reinstated. See Va. State Corp. Comm'n, Business Entity Search, https://sccetile.scc.virginia.gov/Find/ Business
(last visited Sept. 7, 2017).
4 USC IS records identify the Petitioner's other petition by the following receipt number:
4
Matter of R-D-S-, LLC
Under Sonegawa, the length of the Petitioner's continuous business operations suggests its ability to
pay the proffered wage. But the record does not indicate growth in its business or in its number of
employees. Also, unlike the petitioner in Sonegawa, the Petitioner here did not demonstrate its
incurrence of uncharacteristic losses or expenses, or its possession of an outstanding reputation in its
industry. In addition, unlike the petitioner in Sonegawa. the Petitioner here must demonstrate its
ability to pay multiple beneficiaries. Thus, the Sonegawa factors do not establish the Petitioner's
ability to pay.
For the foregoing reasons, the record does not establish the abilities of the Petitioner or the LLC to
pay the proffered wage. We will therefore also deny the motion to reopen.
III. CONCLUSION
The motion to reopen does not demonstrate the required abilities of the Petitioner or its purported
successor to pay the proffered wage. The motion to reconsider does not establish our appellate
decision's misapplication of law or policy in finding the labor certification invalid for the current job
opportunity.
ORDER: The motion to reopen is denied.
FURTHER ORDER: The motion to reconsider is denied.
Cite as Matter of R-D-S-. LLC, ID# 579377 (AAO Oct. 4, 2017)
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