H1B Salary Hike: Lawsuit Slapped Against US Govt By IT Firms To Stop This Unreasonable Hike

Various IT firms in the US has come together, and slapped a lawsuit against US Govt over their rule for hiking salaries of H1B visa holders.

This can turn out to be a landmark case against the immigration and job visa amendments, which the US Govt is trying to impose, in order to protect American jobs.

Will this lawsuit change anything?

Lawsuit Filed Against US Govt Over H1B Salary Hike

An association of several IT companies, called ITServe Alliance has filed a lawsuit in the 

US District Court New Jersey.

This lawsuit has been filed against the US Labor Secretary Eugene Scalia and John Pallasch, Assistant Secretary of Labor over the changes in the laws related to wages of H1B visa holders.

As much as 50% salary in some cases has increased for H1B visa holders in the US, even since the new rule came into force.

As per the lawsuit filed, the salary hike rule was “contrary to procedures required by law, DOL’s issuance of the IFR for failing to follow the required notice and comment procedures.”

This is the 1st such lawsuit against the US Govt over the H1B salary hike rule, which is impacting almost every IT company which is dependent on H1B employees for their projects.

Upto 50% Salary Hiked Due To H1B Visa Rules

As per new rules imposed by the US Govt, H1B visa holders with specialised skills will now get more salary, as per the law.

This means that IT firms who used to hire H1B employees will get no benefit, and indirectly they are being forced to hire only Americans.

This move is directly impacting the entire business model of IT firms in the US, and doing business becomes more tough.

As MoneyControl reported, wages for H1B visa holders has increased as much as 50% in some states. 

This will not only impact all Indian IT firms, which now don’t have any other option but to hire Americans, it will also impact smaller firms which are dependent on high skilled workers.

We will keep you updated, as more details come in.