LCA (Labor Condition Application) is a critical legal requirement for hiring foreign workers under the H-1B, H-1B1, or E-3 visa categories. It ensures fair wages, protects U.S. employee rights, and upholds the integrity of the immigration system. Non-compliance can result in visa denials, fines, or even debarments. Whether you’re familiar with the process or looking to avoid penalties, understanding LCA compliance, when to file, and how to stay compliant is essential.  

This blog provides key insights to simplify the LCA process and support your business’s success. 

 Role of LCA Compliance in Hiring Foreign Workers 

The Labor Condition Application (LCA) is crucial for businesses hiring foreign workers. It is a prerequisite for obtaining an H-1B visa petition and ensures employers pay foreign workers fairly. Failure to file an LCA can result in serious legal and financial consequences, damaging the organization's reputation.  

Key Reasons for LCA Compliance: 

• Ensure Fair Wages: LCA maintains wage transparency, confirming that foreign employees will be paid fairly compared to U.S. workers.  

• Prevents Fraud: An LCA document helps validate the accuracy of job and wage details, minimizing the risk of fraudulent activities, and safeguarding the integrity of the immigration system.  

• Reduces the Risk for Penalties: Employers who fail to comply with LCA risk petition denials and costly fines. Sometimes, it might even get businesses permanently debarred from applying for H-1B visa petitions.  

• Protects U.S. Workers: The LCA process is designed to promote fair working conditions, ensuring that businesses hiring foreign workers will not negatively affect U.S. workers’ wages and working conditions. 

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How Employers Can Ensure LCA Compliance in 2025 

Ensuring compliance with LCA is important for employers to avoid potential lawsuits, penalties, and liabilities. By adhering to requirements, employers can avoid these risks and sustain legally compliant hiring practices.  

Steps to ensure compliance include- 

• Determine Wage Rates: Employers must ensure foreign workers are paid the prevailing wages. To access necessary details and avoid confusion, refer to the Department of Labor’s (DOL) wage databases or any previous LCA’s for similar positions.  

• Submit LCA via FLAG: Employers can submit the LCA online through the Foreign Labor Application Gateway (FLAG) system by filling out form ETA-9035E with all the required information, such as job role, wages, and work location. Once the form is submitted, the Department of Labor processes the form in 7 days.  

• Post Worksite Notice: Once employers receive the certification, post this notice at the worksite for 10 days to inform all existing employees about the foreign worker’s employment.  

• Maintain Detailed Documentation: Essential documents such as LCA records, salary information, worksite details, posting records, and employee records must be securely saved for legal compliance for at least one year.  

DOL may conduct audits to ensure the transparency of the LCA process and will require proper documentation to validate the details. For a comprehensive, step-by-step guide on the LCA filing process, refer to this article. 

 LCA Compliance: Top Challenges H-1B Employers Face 

Complying with LCA regulations can get tricky as businesses must go through various complex situations during the process.  

Some common challenges employers face are- 

• Wage Determination Complexity: It is important to select the correct salary for foreign workers, which can be difficult due to employers’ lack of information on determining the right wage. 

• Unclear Job Description: To file an LCA, employers must provide a detailed job description, allowing the authorities to assess the job role thoroughly. Confusion or over-generalization in the description can cause delays and rejections.  

• Inaccurate Notice Posting: After receiving the LCA certification, employers must post the notice at the workplace to avoid unnecessary delays and confusion.  

• Multi-Location Compliance: Large businesses have foreign workers working at different sites, making it complex for employers to maintain proper documentation, as separate LCAs are needed for each worksite. For example, if a foreign employee works at different worksites, employers must have separate LCAs for each work site.  

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LCA: Risks of Non-Compliance 

H-1B employers who do not adhere to the USCIS guidelines and fail to submit the required LCA often face serious consequences such as: 

• Financial Penalties: Employers who fail to comply with the Labor Condition Application risk facing serious monetary fines and legal consequences, which can damage their organizational reputation. 

• H-1B Petition Rejection: Failure to abide by LCA compliance will increase the chances of denial of an H-1B visa petition, hindering future visa applications. 

• Debarment from H-1B Program- If any type of misconduct in setting the correct wage or any other activity compromises the foreign worker’s rights, the employer might have to face serious legal consequences.  

• Reputational Damage: Repeated non-compliance will negatively affect the organization’s image, making recruiting and retaining top talent difficult.  

 LCA Compliance Made Easy: OnBlick’s Solutions 

OnBlick empowers businesses to simplify the LCA process by automating the filing, tracking, and management of Labor Condition Applications.  

Here’s how OnBlick can help you in staying compliant:  

• SOC Code Prediction and Wage-Level Calculator 

Our Standard Occupational Classification Code Predictor (SOC code predictor) and wage-level calculator leverage AI to determine the appropriate SOC codes and prevailing wage levels based on job roles and responsibilities, ensuring compliance and accuracy effortlessly. 

• Notice of Filing LCA Management 

OnBlick’s LCA Notice Generation feature simplifies compliance by offering flexible options for creating and displaying notices. Users can generate notices with custom display areas, including electronic, physical, or both, or upload pre-existing notices directly. The system also provides a detailed preview for accuracy, ensuring seamless compliance management.  

• Automated Document Tracking and Filing 

Streamline the filing process with automated document generation, tracking deadlines, and reminders for timely submissions to avoid penalties. 

• Real-Time Status Updates 

Offer real-time updates on LCA filings, approvals, or rejections to keep employers informed and ensure seamless workflows. 

• Centralized Storage and Audit Support 

Maintain a centralized repository for all LCA-related documents and provide audit trails for quick and efficient compliance reviews during inspections. OnBlick enables businesses to conduct regular audits, allowing employers to identify potential problems early and eliminating any last-minute chaos and delays. 

Conclusion 

Labor Compliance Application plays a pivotal role in ensuring that all foreign workers are paid fairly and that hiring them will not compromise the needs of U.S. workers.
 
Failure to file an LCA on time can result in severe consequences such as H-1B petition denial, financial and legal penalties, and, in some cases, being debarred from applying for further H-1B visa petitions. Employers must submit this document online through FLAG.

Before filing an LCA, all required information, such as correct wage rates, a detailed job description, and worksite details, should be collected. Employers can refer to the Department of Labor Wage databases to get an accurate estimate of the wage rates and follow certain measures such as conducting regular audits, consulting with immigration experts, and leveraging technology to mitigate the risks associated with an improper LCA filing. 

Take the stress out of LCA compliance. Try OnBlick and see how effortless compliance can be! Book your free demo today!