A lawsuit filed October 16, 2020, by a group of technology consulting firms, ITServe Alliance Inc. et al. v. Scalia et al., is challenging the Department of Labor’s (DOL) interim final rule on prevailing wages for H-1B workers. The plaintiffs argue that DOL “dramatically altered the manner in which it calculates prevailing wage rates for the H-1B program” and made the prevailing wage rates “exponentially higher” without prior notice or an opportunity to comment.
They also argue that the new wage rates are “set under a novel standard that conflicts with the governing statutory criteria” and are “arbitrary and capricious because the agency relied on outdated, incorrect, or limited empirical data, failed to consider readily available, relevant data and empirical studies, and engaged in reasoning that conflicts with basic economic theory.”
The plaintiffs seek a preliminary and permanent injunction to stop DOL from imposing the new wage rates, which they say will “upend” their businesses. Several other lawsuits challenging the DOL rule and a related rule from the Department of Homeland Security on specialty occupations and the employer-employee relationship are expected to be filed the week of October 19.