Outdoor Amusement Business v. Dept of Homeland Security

983 F.3d 671
CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 18, 2020
Docket18-2370
StatusPublished
Cited by15 cases

This text of 983 F.3d 671 (Outdoor Amusement Business v. Dept of Homeland Security) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Outdoor Amusement Business v. Dept of Homeland Security, 983 F.3d 671 (4th Cir. 2020).

Opinion

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 18-2370

OUTDOOR AMUSEMENT BUSINESS ASSOCIATION, INC.; MARYLAND STATE SHOWMEN'S ASSOCIATION, INC.; THE SMALL AND SEASONAL BUSINESS LEGAL CENTER; LASTING IMPRESSIONS LANDSCAPE CONTRACTORS, INC.; THREE SEASONS LANDSCAPE CONTRACTING SERVICES, INC; NEW CASTLE LAWN & LANDSCAPE, INC.,

Plaintiffs – Appellants,

v.

DEPARTMENT OF HOMELAND SECURITY; UNITED STATES CITIZENSHIP AND IMMIGRATION SERVICES; DEPARTMENT OF LABOR; EMPLOYMENT & TRAINING ADMINISTRATION; WAGE & HOUR DIVISION,

Defendants – Appellees,

--------------------------------

MARGHARITA KURI; TIMOTHY KING; HENRY WOJDYLO; RONALD NYENHUIS; SHIRLEY HARMON; ANTONIO RIVERA MARTINEZ; ANDREW MITSCHELL; COMITÉ DE APOYO A LOS TRABAJADORES AGRICOLAS (CATA); PINEROS Y CAMPESINOS UNIDOS DEL NOROESTE; NORTHWEST FOREST WORKERS CENTER,

Amici Supporting Appellees.

United States District Court for the District of Maryland. Ellen L. Hollander, District Judge. (1:16-cv-01015-ELH) Argued: September 10, 2020 Decided: December 18, 2020

Before KEENAN, WYNN, and RICHARDSON, Circuit Judges.

Affirmed in part and vacated in part by published opinion. Judge Richardson wrote the opinion, in which Judge Keenan and Judge Wynn joined.

ARGUED: Robert Wayne Pierce, PIERCE LAW FIRM, Annapolis, Maryland; Leon R. Sequeira, Arlington, Virginia, for Appellants. Kathryne M. Gray, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellees. Clermont Fraser Ripley, NORTH CAROLINA JUSTICE CENTER, Raleigh, North Carolina, for Amici Curiae. ON BRIEF: Joseph H. Hunt, Assistant Attorney General, William C. Peachey, Director, Erez Reuveni, Assistant Director, Glenn M. Girdharry, Assistant Director, Joshua S. Press, Office of Immigration Litigation, Civil Division, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellees. Edward Tuddenham, Paris, France; Art Read, JUSTICE AT WORK, Philadelphia, Pennsylvania; Vanessa Coe, LEGAL AID SOCIETY OF PALM BEACH COUNTY, INC., West Palm Beach, Florida; D. Michael Dale, NORTHWEST WORKERS’ JUSTICE PROJECT, Portland, Oregon, for Amici Comité de Apoyo de Los Trabajadores Agricolas (CATA), et al.

2 RICHARDSON, Circuit Judge:

H-2B visas provide vital employees for employers who need temporary

nonagricultural workers but cannot find help domestically. Each year, H-2B visas allow

66,000 temporary workers to enter the country to meet those demands. A core part of the

H-2B visa program is labor certifications—the process of determining whether American

workers are available and whether employment of H-2B workers would adversely affect

similarly employed American workers.

For at least 50 years, the agency in charge of H-2B visas relied on the Department

of Labor to provide labor certifications. In 2008, the Department of Homeland Security

(the agency now charged with administering the H-2B program) passed rules requiring that

employers receive a favorable labor certification from Labor (as Homeland Security’s

chosen “consulting agency”) before obtaining a visa. To implement and structure this

labor-certification process, Labor promulgated several program and wage regulations.

This set off an avalanche of litigation that led to Homeland Security and Labor jointly

issuing a new series of rules in 2015.

Plaintiffs, a group of employers and associations whose members rely on H-2B

visas, challenge Homeland Security’s 2008 Rules and the joint 2015 Rules as exceeding

the agencies’ statutory authority. We agree with the district court that the challenge to the

2008 Rules is time-barred. We conclude that Plaintiffs lack standing to challenge the 2015

Enforcement Rules and therefore vacate the district court’s decision on the merits as to

those rules. But we agree with the district court that the remaining Rules—the 2015

Program and Wage Rules—were properly promulgated.

3 I. Background

Plaintiffs are a group of employers and associations whose members rely on H-2B

visas to find workers for their temporary nonagricultural jobs (“Employers”). Employers

sued to challenge a series of regulations promulgated by Homeland Security and Labor

governing the H-2B program. Employers claim that these rules exceeded the

Government’s statutory authority. See 5 U.S.C. §§ 558 and 706(2)(C). Employers argue

that several of its named members have been harmed by these “unworkable” Rules, as the

Rules have increased compliance costs, caused delays, and led to bankruptcies, layoffs,

and breaches of contract. Supplemental Br. of Employers 1. And Outdoor Amusement,

an organization representing some of the Employers, alleges that it has lost members and

diverted resources to educate and ensure their remaining members comply. Id. at 10.

The first set of challenged rules are Homeland Security’s 2008 Rules. Those Rules

require an employer to receive a favorable labor certification from Labor before submitting

an H-2B petition to Homeland Security. 8 C.F.R. § 214.2(h)(6); 73 Fed. Reg. 78,104,

78,129. 1 Before these Rules, employers still had to seek a labor certification, but they

could request a review by Homeland Security if they were denied. 31 Fed. Reg. 4446 (Mar.

16, 1966); 8 C.F.R. § 214.2(h)(6)(iv)(D), (E) (2008); see also G.H. Daniels III & Assocs.,

Inc. v. Perez, 626 F. App’x 205, 207 (10th Cir. 2015). Under the 2008 Rules, however,

Homeland Security would not consider granting an H-2B petition if Labor denied the

1 A labor certification may be granted if United States workers able to perform the temporary labor are unavailable and the H-2B’s employment will not adversely affect similarly employed United States workers. 8 C.F.R. § 21432(h)(6)(iii)(A).

4 employer a labor certification. 8 C.F.R. § 214.2(h)(6)(iii)(C). If Labor refused to issue a

certification, an employer’s only recourse after the 2008 Rules was to appeal within Labor

to obtain a certification. 8 C.F.R. § 214.2(h)(6); 73 Fed. Reg. 78,063, 78,104, 78,129.

Employers argue that the 2008 Rules abrogate Homeland Security’s statutory duty to be

the agency determining every petition by making petitions contingent on a favorable labor

certification from Labor.

The Employers also challenge two sets of rules from 2015: the 2015 Program Rules

establishing the standards governing the labor-certification-application process, 80 Fed.

Reg. 24,042, and the 2015 Wage Rules setting the standards for determining prevailing

wages to be paid to H-2B workers, 80 Fed. Reg. 24,146. Employers contend that these

2015 Program and Wage Rules exceed Homeland Security and Labor’s statutory authority

because Homeland Security cannot pass rules about labor certifications controlling Labor

and Labor lacks authority to issue any rules governing its own conduct in granting the labor

certifications.

The district court rejected these challenges and granted summary judgment

upholding the regulations.

A. Statutory framework and history

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