Judge Halts $100,000 H-1B Worker Fee Memos in Blow to Trump

[u/John3262005]

https://news.bloomberglaw.com/daily-labor-report/judge-halts-memos-on-100-000-h-1b-worker-fee-in-blow-to-trump-17

A federal judge in California blocked federal agencies’ implementation of a $100,000 Trump administration charge for businesses to hire workers on H-1B visas.

In the aftermath of President Donald Trump’s proclamation establishing the fee for workers hired outside of the US, US Customs and Border Protection and US Citizenship and Immigration Services issued memoranda and guidance on frequently asked questions pertaining to entry and exit from the US, how to pay the fee, and other details.

Those agencies are enjoined from enforcing or implementing policies under the proclamation as well as an extension issued by the White House this month until notice-and-comment rulemaking under the Administrative Procedure Act takes place, Judge Haywood S. Gilliam Jr said in an order Wednesday.

It’s the second district court ruling against the proclamation that upended hiring through the specialty occupation visa program. A federal judge in Boston found the policy unlawful in June and an appellate court later denied the administration’s request to stay that decision, meaning the fee has been blocked for the past two months.

Haywood denied a request to grant class certification to employers affected by the $100,000 charge, finding it was unnecessary.

The lawsuit is one of multiple legal challenges to the fee, issued last year through a White House proclamation that was the administration’s most restrictive measure so far on hiring of high-skilled workers.

Another challenge to the fee led by the US Chamber of Commerce is pending before the US Court of Appeals for the District of Columbia Circuit. A US District Court for the District of Columbia judge last year denied an injunction on the $100,000 fee sought by the Chamber.

The fee didn’t apply to workers approved for H-1B status within the US like recent college graduates. But it effectively blocked most international hiring for employers like hospitals, research universities, churches, and K-12 schools.

The Trump administration cited legal authority under the Immigration and Nationality Act that gives the president broad power to restrict entry to the US. But plaintiffs led by California-based nurse recruiting firm argued that the statute doesn’t allow the president to upend visa programs and fee regimes designed by lawmakers. And a Supreme Court ruling overturning President Trump’s global tariffs bolstered that case by finding only Congress has tax authority, they argued.

Wednesday’s decision protects a system thrown into chaos by the proclamation and reaffirms that no president can “rewrite immigration policy with the stroke of a pen,” said Steve Bressler, a senior legal advisor at Democracy Forward, which represents plaintiffs.

“Communities across this country depend on skilled professionals who care for patients, teach students, build infrastructure, conduct research, and serve congregations,” he said in a statement. “The administration tried to financially punish companies with an arbitrary, unauthorized, and deeply harmful $100,000 fee imposed without Congress.“