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Board of Alien Labor Certification Appeals Upholds Denial Finding Employer and Beneficiary Are One and the Same - Febuary 14, 2008
This case arises from the Employer’s request for review of the denial by a
U.S. Department of Labor Certifying Officer (“CO”) of an application for labor
certification in the above-captioned matter. Permanent alien labor certification
is governed by Section 212(a)(5)(A) of the Immigration and Nationality Act, 8
U.S.C. '1182(a)(5)(A), and Title 20, Part 656 of the Code of Federal Regulations
(“C.F.R.”).2 We base our decision on the record upon which the CO denied
certification and the Employer’s request for review, as contained in the appeal
file (“AF”), and any written arguments. 20 C.F.R. §656.27(c).
STATEMENT OF THE CASE
On or about July 25, 2001, the Employer, ATI Consultores, an environmental
consulting firm, filed a handwritten application for labor certification
for the position of “ISO 1400 Witness” (AF 210-211), and a typewritten
application for labor certification for the position of “General Manager.” (AF
206-207). Both applications were filed on behalf of the Alien, Enrique Jimenez.
Dr. Jimenez3 was also listed as the Employer’s General Manager. Dr. Jimenez
provided the “Declaration of Employer” on the application forms. (AF 207, 211).
Moreover, he provided the “Declarations” on the typewritten and handwritten
“Statement of Qualifications of Alien” forms. (See AF 208-209, 212-213). In a
Notice of Findings dated February 12, 2007, the CO proposed to deny
certification, citing several deficiencies with the application. (AF 187-196).
For the purpose of this decision, our focus is on the CO’s finding that a bona
fide job opportunity did not exist which was truly open to U.S. workers because
of the relationship between the Employer and Alien. Based on the applications,
the CO concluded that the Alien and the Employer were one and the same.
Moreover, the CO found that it was unlikely that the Alien would displace
himself in his own environmental consulting business. Therefore, the CO
requested documentation to establish that 2 This application was filed prior to
the effective date of the “PERM” regulations. See 69 Fed. Reg. 77326 (Dec. 27,
2004). Accordingly, the regulatory citations in this decision are to the 2004
edition of the Code of Federal Regulations published by the Government Printing
Office on behalf of the Office of the Federal Register, National Archives and
Record Administration, 20 C.F.R. Part 656 (Revised as of Apr. 1, 2004), unless
otherwise noted. 3 Dr. Jimenez has a Ph.D. in Chemical Engineering from the
Polytechnical Institute of Toulouse. (AF 215). the Employer and the Alien were
in fact two separate entities, and that the job opportunity was in fact clearly
open to qualified U.S. workers. (AF 189). The Employer’s rebuttal was submitted
under cover letter dated March 15, 2007, signed by Enrique Jimenez, as the
Employer’s General Manager. (AF 40-186). Dr. Jimenez argued that he and the
Employer were two separate entities as evidenced by the existence of different
taxpayer numbers. Dr. Jimenez indicated, however, that ATI Consultores is a sole
proprietorship and that he is the sole owner. (AF 52-53). Moreover, the rebuttal
documentation included, among other documents, a Texas Sales and Tax Use Permit
for ATI Consultores showing Dr. Jimenez as the taxpayer (AF 61-64); a Texas
Assumed Name Records Certificate of Ownership for Unincorporated Business or
Profession showing Dr. Jimenez as the owner of ATI Consultores (AF 66); copies
of E1 visas from 1997 to 2011 issued to Dr. Jimenez, which beginning with the
1998 visa are annotated for ATI Consultores (AF 67-69); an I-140 Petition dated
September 11, 2001 showing ATI Consultores as the petitioner in support of a
beneficiary with Dr. Jimenez being shown as the “c/o” addressee (AF 70); copies
of ATI’s business tax returns for 2003, 2004 and 2005 showing Dr. Jimenez as the
proprietor (AF 76-88); and a Texas Sales and Use Tax Return from 2007 listing
both Dr. Jimenez and ATI Consultores. (AF 131). On April 17, 2007, the CO issued
a Final Determination denying benefits. (AF 33-39). The CO stated, in pertinent
part: In response to the Notice of Findings the employer provided evidence that
the alien is in fact both the employer and a major investor with 100% ownership
of the company, therefore he does not meet the definition of employer as defined
in 656.3 …. The employer then confirms that the alien is the only surviving
official having control or influence over hiring decisions involving the
position for which labor certification is sought, therefore the job does not
appear to be open to U.S. workers. By letter dated May 14, 2007, Dr. Jimenez
requested BALCA review. (AF 1-32). The letter does not clearly set out the
nature of his objections to the CO’s denial of certification. The most cogent
part of the appeal letter contains a contention that under a Treaty Trader Visa
(i.e., an E1 visa), an employer and employee can be the same person who
administers and operationally controls a company, and that under this Treaty Dr.
Jimenez is entitled to request permanent residency. (AF 2). The Board received
the Appeal File on July 31, 2007, and issued a Notice of Docketing on August 6,
2007. On August 29, 2007, the Board received a package of materials under the
cover letter of Raquel A. Samaniego, Notary Public, Ran Income Tax Service,
referencing the Board’s Notice of Docketing. Ms. Samaniego’s letter seems to be
based on the belief that the instant matter related somehow to the
classification of Dr. Jimenez in regard to his E1 visa. Upon review of the
letter and associated documentation, it appears that Ms. Samaniego misunderstood
the nature of this appeal of the denial of permanent alien labor certification,
and that her submission is, on the whole, not relevant to the matter before this
Board.
DISCUSSION
The regulatory definition of “Employment” means, in pertinent part,
“permanent fulltime work by an employee for an employer other than oneself.” 20
C.F.R. §656.3. (Emphasis added). In Modular Container Systems, Inc.,
1989-INA-228 (July 16, 1991) (en banc), the Board held that “if the alien or
close family members have a substantial ownership interest in the sponsoring
employer, the burden is on the employer to establish that employment of the
alien is not tantamount to self-employment, and therefore a per se bar to labor
certification.” If the job opportunity is merely self-employment, it is barred
per se. Malone & Associates, 1990-INA- 360 (July 16, 1991)(en banc). Even if an
employer establishes that the employment of the alien is not tantamount to
self-employment, and thus is not barred per se, section 656.20(c)(8) requires
the employer to establish that it is providing a bona fide job opportunity
clearly open to any qualified U.S. worker. Id. In the instant case, the
overwhelming weight of the evidence establishes that the Alien has a 100%
ownership interest in the petitioning Employer and is also its General Manager.4
Other than the observation that the Alien and the Employer have two different
taxpayer numbers, the Employer presented no evidence indicating a genuine
independence from the Alien’s ownership control and involvement in the business.
We find that the relationship between the Alien and Employer is unmistakably
tantamount to self-employment, and therefore a per se bar to permanent labor
certification. We find that that the requirements for qualification for an E1
Treaty visa have not been shown to be relevant to the question of whether Dr.
Jimenez’s solely owned company can sponsor him for permanent alien labor
certification from the Department of Labor. Moreover, even if the Alien-Employer
relationship were not tantamount to self employment, the Employer has failed to
establish that there is a bona fide job opportunity open to qualified U.S.
workers. Accordingly, we conclude that labor certification was properly denied.
ORDER
The Certifying Officer's denial of labor certification is hereby AFFIRMED.
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