U.S. Department of Labor Announces Debarment of a Software Provider

On July 9, 2008, the U.S. Department of Labor (DOL) announced that it formally debarred LawLogix Group Inc., an immigration software company, from filing applications for permanent labor certification (PERM). The debarment will be in effect for three years. The press release stated that the DOL determined that the company willfully provided false or inaccurate information when applying for permanent labor certifications, and engaged in a pattern or practice of failing to comply with the terms of the application, ETA Form 9089.
In fact, the DOL does not tell the whole story. In 2007, the department issued final regulations designed to enhance program integrity, and reduce incentives and opportunities for fraud and abuse. Newer electronic form systems require providers to understand how data will be transmitted through the system. LawLogix is a company that designs and sells immigration software to businesses that utilize the permanent labor certification program. Last year, LawLogix submitted more than 100 applications using the permanent program's online filing system for the sole purpose of testing the parameters of the department's electronic processing system. Unlike other government entities, the DOL made it difficult for immigration software providers to work with the agency to test the software; and it seems LawLogix assumed DOL would clearly identify the test applications as what they were—test applications, and not false applications.

Debarment is one tool in the DOL arsenal utilized to achieve their goals. It is essential to understand that in this case, LawLogix is not debarred from acting as a software provider, but only from submitting DOL PERM applications as an employer.

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