Federal District Court Strikes Down DOL Wage Regulation, Orders Reissuance of Prevailing Wage Determinations
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A federal district court in the District of Columbia today set aside a fast-track Department of Labor regulation that essentially rebuilt the overall compensation system for the H-1B, E-3, and H-1B1 nonimmigrant programs and PERM labor certification. The district court is the third to lead against the DOL Wage Regulation in recent weeks.
The decision arrives in a couple of consolidated claims filed by colleges and business groups. Challenging the Department of Labor’s October 8, 2020 release of an interim final regulation (IFR). That brought about fundamentally higher government prevailing wage minimums for foreign professional workers. As an IFR, the guideline took effect before public comments were considered.
DOL explained expedited review and execution of the rules on the grounds that expedited implementation was essential to support U.S. laborers in the midst of the economic impact of the COVID-19 crisis. The court dismissed DOL’s reasoning, finding that it didn’t have a great purpose to bypass public notice and comment. Thus violating the Administrative Procedures Act. The cases are Purdue University v. Scalia and Stellar IT, Inc. v. Scalia.
Reissuance of Prevailing Wage Determinations
In addition to striking down the guideline, the district court ordered DOL to reissue any prevailing wage determination (PWD) gave after 8th October 2020, under the now-discredited rule. The gatherings to the claim are expected to propose a timeline for reissuance for the court’s approval in the coming weeks. When that happens, DOL is expected to give a procedural update for influenced employers.
What’s next for the Prevailing DOL Wage Regulation
However, after a few lawful setbacks, the Trump government is proceeding to pursue the finalization of a set of regulations. That would greatly influence the H-1B and other employment-based immigration programs, including a revised prevailing compensation rule. The Administration intends to have these guidelines set up before the Biden inauguration. However, it is not yet clear whether it will have the option to do as such. The new government could look to delay the implementation of any such last-minute regulations.
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We are closely observing the Trump Administration’s regulatory activity and related litigation and will give updates as development happen.
