The lawsuit filed against the American government in the District Court for the District of Columbia alleges that the new rule is poorly-drafted and improperly-issued. Additionally, it is alleged that the procedural rules for rule-making have not been complied with and the recent Interim Final Rule on wages is substantively arbitrary, incorrect and irrational.
A consortium of seventeen parties, individuals and organizations, which includes not only businesses but also universities have filed the case against the US Department of Labor.
The most sought-after visa among Indian IT professionals, the H1-B visa is non-immigrant visa that allows American entities to employ foreign workers in specialty occupations that require theoretical or technical expertise.
The Department of Labor, early this month, published a rule to bring parity between wages of foreign workers and American workers.
The White House claims that the first benefit is the increase in the quality of the workforce applying for H1-B workers.
The second benefit claimed is that the jobs of the American workers will become more secure as the maneuverability of the employers to replace native workforce with earlier low-cost foreign workforce will be restricted
However, Jesse Bless, director of federal litigation at the American Immigration Lawyers Association (AILA), claims, "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."
"Frankly, the last thing we need during a (COVID-19) pandemic and economic turmoil is a rule based on a false and incorrect understanding of the market and American workforce. This will impede our economic recovery, not enhance it," Bless said.
He went on to claim that the regulation has caused harm in every industry of the American economy, harm which is immediate and unnecessary. Some of the entities he mentioned include academic institutions, non-profits, hospitals, start-ups, and small businesses.
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, and Physicians for American Healthcare and Hodges Bonded Warehouse.
Jeff Joseph, Senior Partner of Joseph and Hall, claimed that entire handling is arbitrary and feels like playing “The Hunger Games”, a media production where there are no stable rules and anything can happen at any time.