Recently, there have been charges against US Labour dept. Seventeen individuals and organisations, including universities and businesses, have filed a lawsuit against the US Department of Labour claiming its recent Interim Final Rule on wages associated to H-1B 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.
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The H-1B 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), asserted. 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.
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“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. Early this month, the Department of Labour published a rule to appropriately identify wage levels for H-1B holders and other foreign labour programmes, which as per the White House will enhance the quality of H-1B workers and better reflect wages paid to similarly employed workers in the US. The rule will restrict 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 disputed.