IT industry body NASSCOM on Wednesday welcomed a US court order blocking two rules surrounding the H-1B rules, saying the move recognizes the importance of high-skill visa programs and provides critical talent to American businesses Will help reach. On December 1, 2020, Judge Jeffrey White of the US District Court for the Northern District of California issued an order blocking two interim final rules (IFRs) on the H-1B rules, a capability proposed by the Department of Labor and Homeland Security Are to limit. American companies hire foreign-origin employees on H-1B visas.
The Department of Homeland Security (DHS) interim final rule came into effect from December 7, 2020, NASSCOM said in a statement, but it would not be decided. The Department of Labor (DOL) IFR went into effect on October 8, 2020 and is no longer in effect, with NASSCOM stating that the ruling effectively enforces the DOL and DHS regulations until an appeals court is found. By applying.
“We welcome a court ruling that explicitly recognizes the importance of high-skill visa programs to the US, and that previously issued IFRs did not hold legal law. NASCOM believes this Businesses will be helped to reach talent in the economic recovery phase. Following the COVID world, “it said. The industry body noted that the DOL IFR changed the way in which DOL calculates prevailing wage rates and adjusts prevailing wage percentages for levels I and IV.
The DHS IFR introduced several changes to the H-1B visa program, including amendments to regulatory definitions of “special occupation” and reductions in the employer-employee relationship and the validity period of H-1B workers employed in third-party jobs. Sites ranging from three years to one year. NASSCOM stated, “In his decision, Judge White found that the US Departments of Labor and Homeland Security had violated the Administrative Procedure Act (APA) by issuing two new regulations in the form of IFRs and opportunities to comment to the public. Was deprived of, ”NASSCOM reported.
The court’s decision rests on whether the US government has demonstrated what its effect is COVID-19 The distribution was justified with “due deliberations” due to domestic unemployment, which usually accompanies the rulemaking to make changes to the H-1B visa program. The court concluded that the US government did not show good cause on the pretext of the notice and comment procedures.
Specifically, the court said the evidence did not support the US government’s claim that the epidemic’s ongoing impact on the domestic labor market made it “impractical” to allow it to notice and comment before issuing regulations Dia, Nomcom said in its statement. The industry body said it had submitted comments on behalf of thousands of its member companies, objecting to IFRs on a procedural and substantive basis.
“We considered the rule unjust and sought to protect the IFR as a whole, it would harm American businesses, American workers, and the economy of the United States as a whole. This was clearly not statutorily supported. Or process, ”NASSCOM said. Allow for public review and comment, the DOL did not receive stakeholder input, which would have pointed out flaws in the new calculation for wage rate determination, and noted the interests affected by the sudden imposition of this IFR.
NASSCOM emphasized that several studies have shown that the H-1B program plays an essential role in helping American enterprises secure skills sets that they cannot find locally and that highly skilled employees Provide tremendous benefits to their employers and the US as a whole. The spike created by this year even during the height of unemployment COVID-19 The epidemic in the IT sector, unemployment has fallen from 3 per cent in January 2020 to 3.5 per cent in September 2020.