The Lawsuit Against The H-1B Wage Increase Filed In US Court

A non-profit trade organization, ITServe Alliance, has led a lawsuit in the NJ district court challenging the increase in the wage levels for H1B visas.

On the 6th of October, the DOL issued an Interim Final Rule (IFR) to increase the ‘prevailing wages’ to hire H-1B employees. And the new rule makes the hiring of H-1B workers expensive; the increase is 40-50% on average. This would have a huge impact on IT firms, especially smaller ones, who would find it hard to recruit a skilled workforce in the US.

This non-profit trade organization complaint alleges that the DOL’s wage calculations in this IFR are awed and will cause irreparable harm to American employers as well as the overall economy.

Jonathan Wasden and Bradley Banias of Wasden Banias, and seven other member companies against US Secretary of Labor Eugene Scalia and Assistant Secretary of Labor John Pallasch led the lawsuit.

“This haphazard and baseless rule will hurt thousands of small and medium IT companies. Instead of helping with job creation and economic growth.” said the spokesperson.

ITServe has submitted research carried out by the National Foundation for American Policy stated that the new rule to price the H-1B employee's services out of the U.S. labor market.

Earlier this year, ITServe Alliance won a case against the US Citizenship and Immigration Services that made the Department of Homeland Security rescind two memos that had resulted in increasing denial rates for H-1B.