Key Points
  • A lawsuit has been filed against the Labor Department challenging minimum wage requirements
  • The rule applies to H-1B, H-1B1, E-3 programs, and PERM applications
  • The Labor Department’s rule took effect on October 8, 2020
  • Public comments on the rule are accepted through November 9, 2020
  • The rule will remain in effect unless courts order the government to stop enforcing it
  • Additional litigation is expected
Overview

Recently, several computer service and IT companies filed a lawsuit against the Labor Department challenging a new rule that substantially increases minimum wage requirements for H-1B, H-1B1, E-3 programs, and permanent labor certification (PERM) applications. The rule took effect on October 8, 2020.

Background

On October 8, the Labor Department changed wage requirements for H-1B, H-1B1, E-3 nonimmigrant applications, and PERM applications. The rule was introduced as an Interim Final Rule. Although it was immediately effective, the public has until November 9, 2020 to submit comments.

What has Changed?

Plaintiffs in the lawsuit, which was filed in a federal court in New Jersey, seek to halt enforcement of the Labor Department’s new rule. They allege that the Labor Department did not follow standard rulemaking procedures and that its regulations violate the Immigration and Nationality Act. The plaintiffs also argue that the regulation is arbitrary and capricious because the agency used incorrect or outdated information.

Looking Ahead

Additional litigation seeking to block the rule is expected. The rule will remain in effect unless the courts order the government to stop enforcing it.


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