H1B Visa Rules: 3rd Lawsuite Slapped Against Trump Govt Over New H1B Salary Hike, New Rules

As much as 13 organizations have sued the Trump government for the new H-1b rules that have been recently announced.

As per the organizations, these rules are illegal and arbitrary and will have a huge impact on hiring and business.

Read on to find out all the details!

Third Lawsuit Filed Against Trump Organization For “Illegal And Arbitrary” H-1B Laws 

Around  13 US trade organizations, universities, and healthcare firms have filed a lawsuit against the Trump organization for the two new H-1B rules implemented. They have claimed that these laws are illegal and arbitrary, and will severely affect the hiring and business of Indian IT firms.

This is not the first lawsuit against the administration; but the third. This third lawsuit has been filed by the US Chamber of Commerce and other players, such as  the National Association of Manufacturers, the Bay Area Council and universities like Cornell University. 

The lawsuit states that the rules should be set aside as they “were unlawfully issued without notice and comment and are arbitrary, capricious, or otherwise not in accordance with law.”

New H-1B Visa Rules Implemented By Trump Administration

Here’s a quick recap of the new rules implemented by the Trump organization:

Wage levels of H-1B visa holders have been hiked by as much as 47% for some H-1B and green card applicants in some regions by the Department of Labor (DOL). The increase in wages has been done so as to make it difficult for companies to hire H1B visa holders and turn them to hire their employees locally. Hiking the wages would imply that the profit margins of employers are reduced.

The second rule was to tighten the rules and put a sharp limit on the number of H-1B visas to be handed out to the employees so that there would be a preference to local hiring. As per the rules, the estimates of the Department of Homeland Security (DHS) have suggested that about one-third of the applicants should be denied the visa. 

These rules were introduced on October 6.

The hikes in the wage levels were implemented on October 8 and the DHS rgulation is set to be effective 60 days after.

This is still a developing story, and we’ll keep you informed as we get any more updates!