The Department of Labor (DOL) has informed a federal court in California that it didn’t wish to support the proposed prevailing wage rule, which would impose steep wage hikes, “at the same time that is internally evaluating the propriety of that Rule” in the challenge to stop the agency from changing the prevailing wage rates.
The claim challenges the implementation of The Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States. Earlier, the Trump government had intended to implement this new guideline. This would considerably raise the required minimum wages for workers under H-1B, H-1B1, and E-3 nonimmigrant visa classification, just as for PERM-based green card applicants.
DOL Will Not Defend Proposed Prevailing Wage Rule
Many considered this rule as a blow to visa programs that help bring highly skilled workers to or keep them in the United States. In particular, the wage increases would make it progressively hard for organizations to hire foreign nationals for entry-level positions. Considering these worries, litigation ensued and an injunction blocked implementation of the rule. Ultimately, the Biden government delayed the rule’s execution until November 2022. While it reviewed the policy and looked for more public comment.
The Biden DOL is requesting that the court remand the policy back to the agency for additional review and “careful consideration”. In addition, it did not oppose vacating the rule for the present. In its filing, DOL clarified that its review could result in critical changes to the proposed rule. It noticed that it needs to think about the arguments of the litigants and those of numerous new commentators.
Jackson Lewis lawyers will continue to follow the progress of this rule and give updates as they become available.