homelegal NewsAbout 17 individuals, organisations file H1B lawsuit against Department of Labor

About 17 individuals, organisations file H1B lawsuit against Department of Labor

The 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, the White House argued.

By PTI Oct 20, 2020 7:48:54 AM IST (Updated)


Seventeen individuals and organisations, including universities and businesses, have filed a lawsuit against the US Department of Labor challenging its recent Interim Final Rule on wages related to H1B visas. The lawsuit filed in the US District Court for the District of Columbia on Monday alleged that the poorly-drafted and improperly-issued rule did not comply with the procedural rules for rule-making and is substantively arbitrary, incorrect and irrational.
The H1B visa is a non-immigrant visa that 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.
”The increase to the prevailing wages will manifestly not benefit US economic growth or any workers; study after study has shown that H-1B visa holders create American jobs,” Jesse Bless, director of federal litigation at the American Immigration Lawyers Association (AILA), claimed. The regulation, he said, has caused immediate and unnecessary harm in every corner of the economy, including academic institutions, non-profits, hospitals, start-ups and small businesses.