Late Fri, ITServe and several of its members filed a Federal lawsuit against the DOL for its most recent change in the calculation of prevailing wages. The lawsuit cites not only procedural failures in the promulgation of the regulations but, also cites the use of faulty data. The lawsuit was filed by Jonathan Wasden and he commented that if a freshmen economics student had put forth the same economic arguments that the DOL had, they would’ve failed. This lawsuit is the first of several that are expected to be filed over recent regulatory changes hastily announced by the Trump Administration.
Pursuant to a settlement agreement reached in Federal Court, the USCIS has released an official Policy Memorandum which eliminates the Neufeld memo from 2010 and the contracts and itineraries memo from 2018. This is a major victory for IT and healthcare staffing cos. The new memo reminds employers that they must continue to prove the existence of an employer-employee relationship but, that is now defined per the language of the statue instead of a made up policy designed to target a specific industry. As a practical matter, this new policy should result in full approvals and will alter the number of RFE’s and the issues raised. This new policy will also change the type of evidence that is needed to file a new case.