Lawsuit Challenges H-1B Memo on Employer-Employee Relationship

A group of IT staffing firms and associations has filed a lawsuit challenging a memo (PDF) issued in January 2010 by Donald T. Neufeld, Associate Director of Service Center Operations for U.S. Citizenship and Immigration Services (USCIS), that provided guidance on determining employer-employee relationships for H-1B purposes.

The firms, Broadgate Inc., Logic Planet Inc., DVR Softek Inc., and trade associations TechServe Alliance and American Staffing Association, filed the lawsuit on June 8, 2010, in the U.S. District Court for the District of Columbia. Among other things, the suit alleges that the memo is arbitrary and capricious and not authorized by law or under USCIS’s statutory and regulatory authority. The group argues that denials are being issued under the memo’s guidance for beneficiaries whose visa applications were approved previously under the regulatory criteria.

“IT staffing is a lawful business model that greatly benefits the U.S. economy, U.S. businesses and U.S. workers. The government should not be allowed to attack the industry by circumventing the rulemaking process and reversing long-standing policy by decree,” said Mark Roberts, chief executive officer of TechServe Alliance.

Resource: Q&A on Neufield Memo (site)