sustained
EB-3
sustained EB-3 Case: Ranching
Decision Summary
The director denied the petition based on a perceived inability of the petitioner to pay the proffered wage. The AAO sustained the appeal, finding that the petitioner had demonstrated its ability to pay by establishing it had already paid the beneficiary most of the proffered wage and that its net farm profit was more than sufficient to cover the remaining balance.
Criteria Discussed
Ability To Pay Proffered Wage
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U.S. Departn~ent of Homeland Security
20 Mass. Ave., N.W.. Rm. A3042
Washington. DC 20529
U. S. Citizenship
and Immigration
Services
FILE: WAC-04-1 3 1-53569 Office: CALIFORNIA SERVICE CENTER Date: MAY 1 5
PETITION:
Immigrant petition for Alien Worker as a Skilled Worker or Professional pursuant to section
203(b)(3) of the Immigration and Nationality Act, 8 U.S.C.
1 153(b)(3)
ON BEHALF OF PETITIONER:
SELF-REPRESENTED
INSTRUCTIONS:
This is the decision of the Administrative Appeals Office in your case. All documents have been returned to
the office that originally decided your case. Any further inquiry must be made to that office.
Robert P. Wiemann, Chief
Administrative Appeals Office
WAC-04-1 3 1-53569
Page 2
DISCUSSION: The preference visa petition was denied by the Director, California Service Center, and is now
before the Administrative Appeals Office (AAO) on appeal. The appeal will be sustained. The petition will be
approved.
The petitioner is a sheep ranch.
It seeks to employ the beneficiary permanently in the United States as a
sheepherder. A Form ETA 750, Application for Alien Employment Certification approved by the Department of
Labor does not accompany the petition. A completed Form ETA 750 was submitted and includes a note, author
unknown, that it qualifies for blanket waiver without any additional information. The director determined that the
petitioner had not established that it had the continuing ability to pay the beneficiary the proffered wage beginning
on the priority date of the visa petition and denied the petition accordingly.
On appeal, the petitioner submits a brief statement and additional evidence. The AAO notes that the petitioner
of Appearance as Attorney or Representative signed by its representative,
, who explained that she is a bonded
review of accredited representatives does not contain her name. See
http://www.usdoi.aov/eoir/statspub/AC30404.pdf (accessed April 18, 2006). Under 8 C.F.R. ยงยง 292.1 and 292.2,
persons entitled to represent individuals in matters before the Department of Homeland Security ("DHS"), and the
Immigration Courts and Board of Immigration Appeals ("Board"), or the DHS alone, include, among others,
accredited representatives. Any such representatives must be designated by a qualified organization, as
recognized by the Board. A recognized organization must apply to the Board
for accreditation of such a representative or representatives. ~ecauseis not an individual authorized to
represent petitioners or beneficiaries before DHS, the petitioner is considered self-represented for these
proceedings.
Section 203(b)(3)(A)(i) of the Immigration and Nationality Act (the Act), 8 U.S.C. tj 11 53(b)(3)(A)(i), provides
for the granting of preference classification to qualified immigrants who are capable, at the time of petitioning for
classification under this paragraph, of performing skilled labor (requiring at least two years training or
experience), not of a temporary nature, for which qualified workers are not available in the United States.
The director's decision only included the discussion of the petitioner's continuing ability to pay the proffered
wage beginning on the priority date. The regulation at 8 C.F.R. tj 204.5(g)(2) states, in pertinent part:
Ability of prospective employer to pay wage. Any petition filed by or for an employment-
based immigrant which requires an offer of employment must be accompanied by evidence
that the prospective United States employer has the ability to pay the proffered wage. The
petitioner must demonstrate this ability at the time the priority date is established and
continuing until the beneficiary obtains lawful permanent residence. Evidence of this ability
shall be in the form of copies of annual reports, federal tax returns, or audited financial
statements.
The petitioner must demonstrate the continuing ability to pay the proffered wage beginning on the priority date,
the day the Form ETA 750 was accepted for processing by any office within the employment system of the
Department of Labor (DOL). See 8 C.F.R. 9 204.5(d). Here, the Form ETA 750 has a date stamp, but that date
stamp does not indicate whether DOL or Citizenship & Immigration Services (CIS) accepted it for processing.
That date stamp reflects October 13, 2004. The visa petition was filed on April 7, 2004. The priority date year is
thus 2004 regardless of whether or not this is some permutation of a labor certification waiver case. The proffered
wage as stated on the Form ETA 750 is $270 per week, which amounts to $14,040 annually. On the Form ETA
WAC-04-1 3 1-53569
Page 3
750B, signed by the beneficiary on March 26, 2004, the beneficiary claimed to have worked for the petitioner as
of October 1994.
On the petition, the petitioner claimed to have been established in 1973, to have a gross annual income of
$47 01 I, and to currently employ 13 workers. In support of the petition, the petitioner submitted a letter fromm.
stating that the beneficiary has been working with The Western Range Association; copies of the
beneficiarv's H-2A temporaw non-immigrant status a~~rovals from May 2000 through October 2004, with
- . .
accompanying temporary labor certifications from DOL; a
position and the beneficiary's qualifications; and a copy o
Schedule F, Profit or Loss from Farming statement for 2002.
Because the director deemed the evidence submitted insufficient to demonstrate the petitioner's continuing ability
to pay the proffered wage beginning on the priority date, on August 2, 2004, the director requested additional
evidence pertinent to that ability. In accordance with 8 C.F.R. 5 204.5(g)(2), the director specifically requested
that the petitioner provide copies of annual reports, federal tax returns, or audited financial statements to
demonstrate its continuing ability to pay the proffered wage beginning on the priority date for 2001 and 2003 and
evidence of wages paid to the beneficiary.
In response, the petitioner submitted the same letter from
the sole proprietor; copies of W-2
forms issued by the petitioner to the beneficiary from 1998 through 2003; and the sole proprietor's individual
income tax returns for 2001 through 2003 with accompanying Schedules F, Profit or Loss from Farming
statements.
Evidence pertaining to 2004 would be dispositive of the petitioner's continuing ability to pay the proffered wage
beginning on the priority date since 2004 is the priority date year. However, since the petitioner did not submit
evidence pertaining to 2004, although the record of proceeding closed before the director on April 2, 2004 with
the petitioner's response to his request for evidence and the sole proprietor's individual income tax return for
2004 would not yet have been available. No other regulatory-prescribed evidence was submitted for 2004 such as
the petitioner's annual report or audited financial statements. The AAO will thus analyze 2003 since it is the most
recent year relevant to the petitioner's financial situation in 2004 for which the record of proceeding contains
regulatory-prescribed evidence.
The petitioner's 2003 tax return reflects the following information:
Proprietor's adjusted gross income (Form 1040)
-$74,324
Petitioner's gross income (Schedule F)
$1,386,806
Petitioner's Labor hired (Schedule F)
$23 1,800
Petitioner's net farm profit or loss (Schedule F)
$54,873
The director determined that the evidence submitted did not establish that the petitioner had the continuing ability
to pay the proffered wage beginning on the priority date, and, on November 5, 2004, denied the petition through
an analysis of the sole proprietor's adjusted gross income and the wages actually paid to the beneficiary from
1998 through 2003.
On appeal, the sole proprietor states the following: "[The beneficiary] is a contracted H2 sheepherder. As
required by California state law, he is currently paid $12,000.00 per month. Additionally, he is furnished food,
WAC-04-13 1-53569
Page 4
housing and transportation at an estimated value of $700.00 per month."
prior letter is also
submitted on appeal
s." addendum stating that the beneficiary sleeps with the sheep and is on call 2417'.
On the Form I-290B,
states that a profit and loss statement is submitted with the appeal but the record of
proceeding does not contain it. The petitioner did not seek any additional time to submit additional evidence.
In determining the petitioner's ability to pay the proffered wage during a given period, CIS will first examine
whether the petitioner employed and paid the beneficiary during that period. If the petitioner establishes by
documentary evidence that it employed the beneficiary at a salary equal to or greater than the proffered wage, the
evidence will be considered prima facie proof of the petitioner's ability to pay the proffered wage. In the instant
case, the petitioner established that it employed and paid the beneficiary $1 1,600 in 2003. Since the proffered
wage is $14,040, the petitioner must illustrate that it can pay the remainder of the proffered wage, which is $2,440
in 2003.
If the petitioner does not establish that it employed and paid the beneficiary an amount at least equal to the
proffered wage during that period, CIS will next examine the net income figure reflected on the petitioner's
federal income tax return, without consideration of depreciation or other expenses. Reliance on federal income
tax returns as a basis for determining a petitioner's ability to pay the proffered wage is well established by judicial
precedent. Elatos Restaurant Corp. v. Sava, 632 F. Supp. 1 049, 1 054 (S.D.N.Y. 1 986) (citing Tongatapu
Woodcraft Hawaii, Lta'. v. Feldman, 736 F.2d 1305 (9th Cir. 1984)); see also Chi-Feng Chang v. Thornburgh,
719 F. Supp. 532 (N.D. Texas 1989); K.C.P. Food Co., Znc. v. Sava, 623 F. Supp. 1080 (S.D.N.Y. 1985); Ubeda
v. Palmer, 539 F. Supp. 647 (N.D. Ill. 1982), afS'd, 703 F.2d 571 (7th Cir. 1983).
The petitioner is a sole proprietorship, a business in which one person operates the business in his or her personal
capacity. Black's Law Dictionary 1398 (7th Ed. 1999). Unlike a corporation, a sole proprietorship does not exist
as an entity apart from the individual owner. See Matter of United Investment Group, 19 I&N Dec. 248, 250
(Comm. 1984). Therefore the sole proprietor's adjusted gross income, assets and personal liabilities are also
considered as part of the petitioner's ability to pay. Sole proprietors report income and expenses from their
businesses on their individual (Form 1040) federal tax return each year. The business-related income and
expenses are reported on Schedule C and are carried forward to the first page of the tax return. Sole proprietors
must show that they can cover their existing business expenses as well as pay the proffered wage out of their
adjusted gross income or other available funds. In addition, sole proprietors must show that they can sustain
themselves and their dependents. Ubeda v. Palmer, 539 F. Supp. 647 (N.D. Ill. 1982), affb: 703 F.2d 571 (7th
Cir. 1983).
' The AAO will not consider living expenses on the beneficiary's behalf as additional income because such
expenses were not included on the Form ETA 750A Items 18 and 20'. Additionally, including such items now
would impermissibly represent a material change to the terms of the proffered position. On appeal, a petitioner
cannot offer a new position to the beneficiary, or materially change a position's title, its level of authority within
the organizational hierarchy, or the associated job responsibilities. A petitioner may not make material changes to
a petition in an effort to make a deficient petition conform to CIS requirements. See Matter of Izummi, 22 I&N
Dec. 169, 176 (Assoc. Comm. 1988). Finally, even if the AAO could accept the argument that the beneficiary
receives additional income through benefits received such as housing and transportation, the record of proceeding
does not contain corroborating evidence of those benefits. Going on record without supporting documentary
evidence is not sufficient for purposes of meeting the burden of proof in these proceedings. Matter of SofJici, 22
I&N Dec. 158, 165 (Comm. 1998) (citing Matter of Treasure Craft of California, 14 I&N Dec. 190 (Reg. Comm.
1972)).
WAC-04-1 3 1-53569
Page 5
In Ubeda, 539 F. Supp. at 650, the court concluded that it was highly unlikely that a petitioning entity structured
as a sole proprietorship could support himself, his spouse and five dependents on a gross income of slightly more
than $20,000 where the beneficiary's proposed salary was $6,000 or approximately thirty percent (30%) of the
petitioner's gross income.
In the instant case, the sole proprietor supports a family of one. The record of proceeding does not contain
evidence of the sole proprietor's monthly living expenses. In 2003, the sole proprietorship's adjusted gross
income is negative however it includes a deduction for the petitioner's prior year's net operating loss deduction in
the amount of -$160,811, which may be added back to the sole proprietor's adjusted gross income as an equitable
consideration of the totality of circumstances in this case. See Matter of Sonegawa, 12 I&N Dec. 6 12 (BIA 1967).
Thus, the sole proprietor has sufficient income to cover the difference between the wages actually paid to the
beneficiary and the proffered wage. It is reasonable to conclude that there are sufficient funds remaining to cover
personal expenses. Therefore, the petitioner has demonstrated that it has the continuing ability to pay the
proffered wage beginning on the priority date.
In visa petition proceedings, the burden of proving eligibility for the benefit sought remains entirely with the
petitioner. Section 291 of the Act, 8 U.S.C. fj 1361. Here, that burden has been met.
ORDER: The appeal is sustained. The petition is approved. Use this winning precedent in your petition
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