What employers should know about key developments this week:
- DOL’s Visa Crackdown: The U.S. Department of Labor (DOL) has frozen all new permanent labor certification (PERM) applications from several major IT and tech companies as part of a joint investigation with the White House Fraud Task Force examining allegations of wage suppression, fake recruitment processes, and systemic misuse of H-1B visas and the PERM process.
- State Department Halts Immigrant Visas: The U.S. Department of State has paused all immigrant visa applications from outside the United States and is preparing to revoke up to 200,000 business and tourism visas held by individuals who have sought asylum.
- H-2A Farmworker Wage Rates in Limbo: A federal court ruled that the DOL’s Adverse Effect Wage Rate methodology for H-2A farmworkers is unlawful, requiring the agency to recalculate rates and potentially exposing employers to back pay liability for the difference.
Transcript
[00:00:03] George Whipple: Welcome to Employment Law This Week. I’m George Whipple. The current administration is stepping up enforcement on work-related visas. The Department of Labor has frozen all new PERM applications from several major IT and tech companies. PERM is a process by which a company proves that no qualified, willing, able, and available U.S. workers exist for a job.
[00:00:33] George Whipple: It’s the mandatory first step for most employment-based green card applications. This freeze is the most aggressive enforcement action to come out of a joint investigation by the DOL’s Office of Inspector General and the White House Fraud Task Force. Investigators are probing allegations of wage suppression, fake recruitment processes, and the systemic misuse of H-1B and PERM.
[00:01:03] George Whipple: This comes as the Department of Homeland Security is attempting for the second time to raise the fee for H-1B visas to six figures. The agency published a proposed rule to require an additional filing fee of $103,265 for any H-1B petition filed with the immigration agency. Meanwhile, the State Department has announced a pause on all immigrant visa applications coming from outside the U.S., and has begun preparations to revoke up to 200,000 business and tourism visas inside the country.
[00:01:44] George Whipple: The revocations would apply to visa holders who have sought asylum in the U.S. All of these actions are creating a climate of ambiguity that makes it more difficult for companies to attract foreign workers and ensure compliance while navigating the visa process. Agricultural employers are contending with a different kind of ambiguity after a California federal judge ruled that the Department of Labor’s rules for calculating the Adverse Effect Wage Rate for H-2A farmworkers are unlawful.
[00:02:19] George Whipple: The decision kept the rates in place, but directed the department to develop a new methodology for calculating the rates. The DOL is also required to notify employers that they may be held responsible for back pay covering the difference between the rates. Agricultural employers are already facing immigration headwinds, with ICE enforcement resulting in a sustained increase in raids at their facilities.
[00:02:50] George Whipple: To minimize business interruptions in the event of a raid, employers should review their policies and procedures. Visit ebglaw.com/eltw423 for guidance on how to make sure you’re prepared. That’s it for this week. Thanks for watching. We’ll see you next time.
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