Yesterday, the two new regulations that drastically increased prevailing wage requirements for H-1B and PERM, and would have soon significantly restricted H-1B eligibility, have been struck down by a federal court in California.
The Department of Labor (DOL) rule, which changed the manner in which DOL calculates prevailing wages, went into effect on October 8 and had already had significant impacts to our clients’ H-1B and PERM cases. The Department of Homeland Security (DHS) rule would have gone into effect December 7 and would have made several changes to the H-1B program, including revising the definition of “specialty occupation.”
Both rules were issued without first going through the normal rule-making process purportedly due to the COVID-19 pandemic’s urgent economic impact on U.S. workers. The court did not buy that argument, and set aside the rules for failure to issue the rules in accordance with the normal “notice and comment” process.
This means that, going forward, companies can rely on previous prevailing wages that were in effect before October 8, and can rest assured knowing that H-1B regulations won’t become even stricter.
As always, we encourage you to contact your WR attorney to discuss your individual case and any questions you may have about the impact of this decision.