US varsities win Lawsuit against H-1B Wage increase; third loss for Trump Administration

The Donald Trump administration lost an H-1B visa case for the third time in December as a US court ruled against the Department of Labour’s (DOL's) move to hike the prevailing wage rates for H-1B visa holders.

The lawsuit was filed by 17 individual and organisational plaintiffs, including Purdue University, University of Michigan, University of Denver and American Immigration Lawyers Association (AILA). The court verdict came as huge relief to thousands of skilled foreign workers in the US and American IT companies.

It is worth noting that the new rules, which came into effect from October 8, increased wages for H-1B workers, across all levels, upwards of 40 per cent.

The new wage increase rules affected the technology sector, educational and research institutions and smaller hospitals. The Michigan University, for instance, in the lawsuit mentioned out that if the required wage for each employee is hiked by $2,500 on a yearly basis, the total hike in annual salaries (excluding benefits) would be one million dollars, which is untenable, according to a report.

The judge said that the poorly drafted, improperly issued rule did not conform with the procedural requirements for rule- making and was arbitrary, incorrect, and irrational. Plus, the DOL has been ordered “to reissue any prevailing wage determinations issued on or after October 8, 2020, under the wage methodology.

Earlier this month, the US district court (Northern District of California) set aside the DOL regulation that would have hiked the required wage for H-1B visa holders and employment-based immigrants by up to 50 per cent, well above the market compensation for comparable US workers.

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