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A group of IT and computer service companies filed a lawsuit Friday to challenge the Labor Department’s new wage regulation. The regulation took effect Oct. 8 and significantly increases wage minimums employers must meet for the H-1B, H-1B1, and E-3 programs and permanent labor certifications (PERM).
Key Points:
Additional Information: The Department of Homeland Security (DHS) also published an H-1B rule this month that makes changes to the H-1B program, including narrowing the definition of “specialty occupation.” DHS also published its rule on Oct. 8, but it is not scheduled to take effect until Dec. 7, 60 days from publication. The DHS rule is not part of the ITServe litigation, but is also expected to be challenged in court.
BAL Analysis: The ITServe lawsuit challenges the legality of the Labor Department’s wage regulation, but the rule will remain in effect unless a judge rules that the government must stop enforcing it. Additional lawsuits seeking to block the DOL and DHS rules are expected. BAL continues to follow the litigation related to the new rules and will provide updates as information becomes available.
This alert has been provided by the BAL U.S. Practice group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2020 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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