The lawsuit filed against theAmerican government in the District Court for the District of Columbia allegesthat the new rule is poorly-drafted and improperly-issued. Additionally, it isalleged that the procedural rules for rule-making have not been complied withand 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 universitieshave filed the case against the US Department of Labor.
The most sought-after visa amongIndian IT professionals, the H1-B visa is non-immigrant visa that allowsAmerican entities to employ foreign workers in specialty occupations thatrequire theoretical or technical expertise.
The Department of Labor, earlythis month, published a rule to bring parity between wages of foreign workersand American workers.
The White House claims that thefirst benefit is the increase in the quality of the workforce applying for H1-Bworkers.
The second benefit claimed is thatthe jobs of the American workers will become more secure as the maneuverabilityof the employers to replace native workforce with earlier low-cost foreignworkforce will be restricted
However, Jesse Bless, director offederal litigation at the American Immigration Lawyers Association (AILA),claims, "The increase to the prevailing wages will manifestly not benefit USeconomic growth or any workers; study after study has shown that H-1B visaholders create American jobs."
"Frankly, the last thing weneed during a (COVID-19) pandemic and economic turmoil is a rule based on a falseand incorrect understanding of the market and American workforce. This willimpede our economic recovery, not enhance it," Bless said.
He went on to claim that theregulation has caused harm in every industry of the American economy, harmwhich is immediate and unnecessary. Some of the entities he mentioned includeacademic institutions, non-profits, hospitals, start-ups, and small businesses.
Among those who have filed thelawsuit 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, ScrippsCollege, Northern Arizona University, Indiana University, Study Mississippi,Dentists for America, and Physicians for American Healthcare and Hodges BondedWarehouse.
Jeff Joseph, Senior Partner ofJoseph and Hall, claimed that entire handling is arbitrary and feels likeplaying “The Hunger Games”, a media production where there are no stable rules andanything can happen at any time.