Chamber of Commerce of the United State of America v. United States Department of Homeland Security

CourtDistrict Court, N.D. California
DecidedDecember 1, 2020
Docket4:20-cv-07331
StatusUnknown

This text of Chamber of Commerce of the United State of America v. United States Department of Homeland Security (Chamber of Commerce of the United State of America v. United States Department of Homeland Security) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chamber of Commerce of the United State of America v. United States Department of Homeland Security, (N.D. Cal. 2020).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 CHAMBER OF COMMERCE OF THE Case No. 20-cv-07331-JSW UNITED STATE OF AMERICA, et al., 8 Plaintiffs, ORDER GRANTING PLAINTIFFS’ 9 MOTION FOR PARTIAL SUMMARY v. JUDGMENT AND DENYING 10 DEFENDANTS’ CROSS-MOTION UNITED STATES DEPARTMENT OF 11 HOMELAND SECURITY, et al., Re: Dkt. Nos. 31, 54 Defendants. 12 13 The Court once again confronts a challenge to the Administration’s assertion that the H-1B 14 visa program adversely affects American workers to such a degree that it must take immediate 15 action. See Nat’l Ass’n of Manufacturers v. Dep’t of Homeland Sec., No. 20-cv-4887-JSW, -- F. 16 Supp. 3d --, 2020 WL 5847503 (N.D. Cal. Oct. 1, 2020) (“NAM”). Here, Plaintiffs bring claims 17 under the Administrative Procedure Act (“APA”) and ask the Court to set aside two interim final 18 rules promulgated by the Department of Labor (“DOL”) and by the Department of Homeland 19 Security (“DHS”): Strengthening Wage Protections for the Temporary and Permanent 20 Employment of Certain Aliens in the United States, 85 Fed. Reg. 63,872 (Oct. 8, 2020) (“DOL 21 Rule”); Strengthening the H-1B Nonimmigrant Visa Classification Program, 85 Fed. Reg. 63,918 22 (Oct. 8, 2020) (“DHS Rule”) (collectively, the “Rules”). 23 Citing the on-going COVID-19 pandemic and the economic consequences of the 24 pandemic, and in particular the rates of domestic unemployment, DOL and DHS invoked the 25 APA’s good cause exception and issued the rules without notice and comment. DOL also invoked 26 the good cause exception to dispense with the APA’s normal thirty-day waiting period, and the 27 DOL Rule went into effect immediately. The DHS Rule is scheduled to take effect on December 1 7, 2020. 2 The APA’s requirement of notice and comment is “‘designed to assure due deliberation of 3 agency regulations’ and ‘foster the fairness and deliberation of a pronouncement of such force.’” 4 E. Bay Sanctuary Covenant v. Trump, 932 F.3d 742, 745 (9th Cir. 2018) (“EBSC I”) (quoting 5 United States v. Mead Corp., 533 U.S. 218, 230 (2001), quoting Smiley v. Citibank (S.D.), N.A., 6 517 U.S. 735, 741 (1996)). The good cause exception, in turn, “is essentially an emergency 7 procedure[.]” United States v. Valverde, 628 F.2d 1159, 1165 (9th Cir. 2010) (quoting 8 Buschmann v. Schweiker, 676 F.2d 352, 357 (9th Cir. 1982)). The exception also is “narrowly 9 construed” and “reluctantly countenanced.” California v. Azar, 911 F.3d 558, 575 (9th Cir. 2018) 10 (quoting Alcaraz v. Block, 746 F.2d 593, 612 (9th Cir. 1984)). 11 It is beyond question that the COVID-19 pandemic is unprecedented in its scope and its 12 impact, and qualifies as an emergency. See HHS, Determination of Public Health Emergency, 85 13 Fed. Reg. 7,316 (Feb. 7, 2020); Proclamation 994 of March 13, 2020, Declaring a National 14 Emergency Concerning the Coronavirus Disease (COVID-19) Outbreak, 85 Fed. Reg. 15,337 15 (Mar. 18, 2020). For reasons set forth later in this opinion, the Court is not tasked with evaluating 16 the emergent nature of the COVID-19 pandemic writ large; nor is it called upon to consider 17 whether the Rules reflect good public policy. Rather, the Court must decide whether Defendants 18 have demonstrated that the impact of the COVID-19 pandemic on domestic unemployment 19 justified dispensing with the “due deliberation” that normally accompanies rulemaking to make 20 changes to the H-1B visa program that even Defendants acknowledge are significant. See DOL 21 Rule, 85 Fed. Reg. at 63,901 (noting “scale of the wage changes achieved by this rule”), 63,908 22 (estimating transfer payment from employers to employees of $198.29 billion over a ten year 23 period”); Michelle Hackman, Trump Administration Announces Overhaul of H-1B Visa Program, 24 www.wsj.com (Oct. 6, 2020) (citing statement by Ken Cuccinelli, Senior Official Performing the 25 Duties of Deputy DHS Secretary, that “about one-third of H-1B applications would be rejected 26 under the new set of rules”). 27 For the reasons that follow, the Court concludes they have not, and the Court GRANTS 1 Plaintiffs’ motion for partial summary judgment and DENIES Defendants’ cross motion.1 2 BACKGROUND 3 A. Procedural History. 4 Plaintiffs filed their complaint on October 19, 2020, and asserted four claims for relief 5 under the APA, only two of which are at issue here. Plaintiffs allege the Rules were issued 6 “without observance of procedure required by law” because there was neither good cause to 7 excuse the APA’s notice and comment period nor to make the DOL Rule effective immediately.2 8 On October 23, 2020, Plaintiffs filed their motion for a preliminary injunction and, in the 9 alternative, for partial summary judgment on those claims. On November 4, 2020, the Court 10 approved the parties’ stipulation (the “Stipulation”) to consolidate Plaintiffs’ motion for a 11 preliminary injunction with the merits of Plaintiffs’ first two claims for relief. See Fed. R. Civ. P. 12 65(a)(2) (“Before or after beginning the hearing on a motion for a preliminary injunction, the court 13 may advance the trial on the merits and consolidate it with the hearing.”). The parties also agreed 14 to “rely upon the [interim final rules (“IFR”)] and the materials cited in the IFR as the 15 Administrative Record.” (Stipulation, ¶ 3.) 16 Defendants filed their opposition on November 6, 2020, and Plaintiffs filed their reply on 17 November 13, 2020.3 18 B. COVID-19 Related Proclamations Regarding Foreign Workers. 19 On April 22, 2020, the President signed Presidential Proclamation 10014 (“Proclamation 20 10014”), Suspension of Entry of Immigrants Who Present a Risk to the United States Labor 21

22 1 See Dkt. No. 31-16, Declaration of Paul Hughes (“Hughes Decl.”) ¶ 15, Ex. 15.

23 2 Plaintiffs’ third and fourth claims for relief assert each Rule is arbitrary, capricious, or otherwise unsupported by law. Plaintiffs contend that, in contrast to what their titles suggest, the 24 Rules are designed to “substantially restrict, if not outright eliminate, the H-1B visa category,” “gut EB-2 and EB-3 immigrant visas,” and “destroy the whole H-1B system.” (Compl., ¶¶ 2, 8.) 25 The parties have agreed to stay the proceedings on those claims. (Stipulation, ¶ 4.)

26 3 The Court also received and considered four amicus briefs supporting Plaintiffs from the American Council on Education and 23 other higher education organizations (Dkt. No. 36-2), a 27 group of colleges and universities from across the United States (Dkt. No. 37-1), a group of 46 1 Market During the Economic Recovery Following the 2019 Novel Coronavirus Outbreak, 85 Fed. 2 Reg. 23,441 (Apr. 27, 2020). Pursuant to Proclamation 10014, the entry of all immigrants into the 3 United States was suspended for 60 days unless an immigrant qualified for an exception to the 4 Proclamation. The President also directed that “[w]ithin 30 days of the effective date of this 5 proclamation, the Secretary of Labor and the Secretary of Homeland Security, in consultation with 6 the Secretary of State, shall review nonimmigrant programs and shall recommend . . . other 7 measures appropriate to stimulate the United States economy and ensure the prioritization, hiring, 8 and employment of United States workers.” Id. at 23,442.

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Chamber of Commerce of the United State of America v. United States Department of Homeland Security, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chamber-of-commerce-of-the-united-state-of-america-v-united-states-cand-2020.