17 individual, organisations file lawsuit against Department of Labor for changes in H1B visas

A lawsuit has been filed against the US Department of Labor challenging its recent Interim Final Rule on wages related to H1B visas by 17 individuals and organisations, including universities and businesses, reported PTI.

The lawsuit was filed in the US District Court for the District of Columbia on Monday. It alleged that recent Interim Final Rule was poorly-drafted and did not comply with the procedural rules for rule-making and is substantively arbitrary, incorrect and irrational.

The H1B visa allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. It is most sought-after among Indian IT professionals.

Jesse Bless, director of federal litigation at the American Immigration Lawyers Association (AILA), claimed, “Studies have shown that H-1B visa holders create American jobs.” 

The new regulation has caused unnecessary harm to the economy, including academic institutions, non-profits, hospitals, start-ups and small businesses.

“This rule is based on a false and incorrect understanding of the market and American workforce and will impede our economic recovery, not enhance it. It is, frankly, the last thing we need during a (COVID-19) pandemic and economic turmoil,” Bless said.

The Department of Labor, early this month, published a rule to appropriately identify wage levels for H-1B holders and other foreign labour programmes to improve the quality of H-1B workers and better reflect wages paid to similarly employed workers in the US.

According to the White House, the new rule will limit an employer’s ability to replace workers with cheap foreign labour and help ensure wages are not suppressed by the presence of low-cost foreign workers.

Among those who have filed the lawsuit are Purdue University, University of Michigan, University of Denver, Chapman University, Bard College, International Institute of New England, Information Technology Industry Council, Arizona State University, Scripps College, Northern Arizona University, Indiana University, Study Mississippi, Dentists for America, Physicians for American Healthcare and Hodges Bonded Warehouse.

Jeff Joseph, Senior Partner of Joseph and Hall, in a statement alleged that dealing with the Department of Labor often feels like “The Hunger Games”.

Aside from the blatantly unlawful way, the Department of Labor dropped this rule on the economy, its basic premise is also wholly incorrect, alleged Greg Siskind, founding partner of Siskind Susser.

“The workers impacted are in occupations with extraordinarily low unemployment. And as we show in the complaint, these outstanding immigrants are doing critical work benefiting everyday Americans, whether it is providing critical research to cure disease, making our country globally competitive, providing medical and dental care to rural Americans, or caring for our country’s senior citizens,” he said.