Stellar It Solutions, Inc. v. United States Citizenship and Immigration Services

CourtDistrict Court, District of Columbia
DecidedNovember 19, 2018
DocketCivil Action No. 2018-2015
StatusPublished

This text of Stellar It Solutions, Inc. v. United States Citizenship and Immigration Services (Stellar It Solutions, Inc. v. United States Citizenship and Immigration Services) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Stellar It Solutions, Inc. v. United States Citizenship and Immigration Services, (D.D.C. 2018).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

STELLAR IT SOLUTIONS, INC. and : KARTIK KRISHNAMURTHY, : : Plaintiffs, : Civil Action No.: 18-2015 (RC) : v. : Re Document No.: 2 : UNITED STATES CITIZENSHIP AND : IMMIGRATION SERVICES, : : Defendant. :

MEMORANDUM OPINION

GRANTING IN PART PLAINTIFFS’ MOTION FOR PRELIMINARY INJUNCTION

I. INTRODUCTION

Plaintiff Kartik Krishnamurthy, a citizen of India, has lived in the United States legally

since 2011 as the holder of an H-1B visa, a status granted to foreign citizens employed in

“specialty occupation[s].” 8 U.S.C. § 1101(a)(15)(H)(i)(b). Last year, Mr. Krishnamurthy’s

employer, Plaintiff Stellar IT Solutions, Inc., submitted a petition on his behalf for an extension

of his visa based on a change in his previously approved employment. After Defendant, the

United States Citizenship and Immigration Services (“USCIS”), denied the petition, Stellar IT

filed an appeal with USCIS’s Administrative Appeals Office (“AAO”). But while he awaits a

decision from the AAO, Mr. Krishnamurthy is left without lawful immigration status, and if he

does not leave the country by November 27, 2018, he risks being deemed inadmissible for the

next three years. Mr. Krishnamurthy and Stellar IT therefore initiated this lawsuit, asking the

Court to ultimately set aside USCIS’s denial of the H-1B petition as “arbitrary” and “capricious”

under the Administrative Procedure Act (“APA”). 5 U.S.C. § 706(2)(A). Presently before the Court, however, is solely their motion for a preliminary injunction that would postpone the

effectiveness of USCIS’s decision and allow Mr. Krishnamurthy to remain in the United States

while the lawsuit is pending.

There are multiple reasons to approach this request with caution: a preliminary injunction

is considered an extraordinary form of relief; judicial intervention is generally disfavored when

administrative remedies have not been exhausted; and arbitrary and capricious review under the

APA is highly deferential to agency decisions. Yet, for the reasons provided below, the Court

concludes that it has jurisdiction to provide relief in this case and that limited judicial

intervention is warranted. Plaintiffs have shown a strong likelihood of success on the merits, as

USCIS’s reasoning for denying the H-1B petition is squarely contradicted by the record and

ignores critical evidence. Meanwhile, if the Court takes no action, Mr. Krishnamurthy is likely

to suffer irreparable harm in that he will be forced to leave the country for an indefinite period of

time.

Accordingly, the Court grants Plaintiffs’ motion in part, and enters an order staying the

effectiveness of USCIS’s denial of the visa petition while Stellar IT’s administrative appeal is

pending. The Court’s order applies retroactively to the date Mr. Krishnamurthy lost lawful

immigration status, and as a result, Mr. Krishnamurthy will retain lawful H-1B status pursuant to

8 C.F.R. § 214.2(h)(2)(i)(H). It bears emphasis, however, that the relief the Court orders is

narrow. The Court takes no position on the ultimate merits of the H-1B petition; it merely finds

that USCIS’s articulated reasoning for denying the petition likely does not comply with the APA.

The ordered relief is also limited in duration. The parties are directed to file a joint status report

with the Court within fifteen days of the AAO’s disposition of the administrative appeal. At that

juncture, the Court may reconsider whether judicial relief remains appropriate.

2 II. BACKGROUND

H-1B visas are a form of legal nonimmigrant status, meaning the visa holder is in the

United States temporarily for a particular purpose, like tourism or to attend school. The purpose

of the H-1B program is to permit American employers to temporarily hire foreign citizens to

work in “specialty occupation[s],” 8 U.S.C. § 1101(a)(15)(H)(i)(B), which the Immigration and

Nationality Act (“INA”) defines as those requiring “theoretical and practical application of a

body of highly specialized knowledge, and . . . attainment of a bachelor’s or higher degree in the

specific specialty (or its equivalent) as a minimum for entry into the occupation in the United

States,” id. § 1184(h)(i)(1)(A)–(B).

After they choose to participate in the H-1B program and find a foreign worker they

intend to hire, employers must complete a two-step process. First, they must submit to the

Department of Labor (“DOL”) a Labor Condition Application (“LCA”) identifying the specialty

occupation job being offered and verifying that they will comply with the requirements of the

program, including paying the worker the mandated wage rate. See 8 U.S.C. § 1182(n)(1).

Among other things, the LCA must also state the start and end dates of the foreign worker’s

employment, as well as the “place of employment,” defined as “the worksite or physical location

where the work actually [will be] performed by the H-1B . . . nonimmigrant,” 20 C.F.R.

§ 655.715; id. § 655.730(c)(4)(iv)–(v).

Second, once the DOL certifies the LCA, the employer must then submit the LCA to

USCIS with a Form I-129 petition requesting that the foreign worker—sometimes referred to as

the petition’s “beneficiary”—be classified as an H-1B nonimmigrant worker. See 8 C.F.R.

§ 214.2(h)(4). In this petition, the employer must establish that it has “an employer-employee

relationship” with the beneficiary, “as indicated by the fact that [the employer] may hire, pay,

3 fire, supervise, or otherwise control the work of” the beneficiary. Id. § 214.2(h)(4)(ii). The

employer also has the burden of establishing that the position offered to the beneficiary is in fact

a “specialty occupation.” To carry that burden, the employer must show that the position

satisfies at least one of four prerequisites:

(1) A baccalaureate or higher degree or its equivalent is normally the minimum requirement for entry into the particular position;

(2) The degree requirement is common to the industry in parallel positions among similar organizations or, in the alternative, an employer may show that its particular position is so complex or unique that it can be performed only by an individual with a degree;

(3) The employer normally requires a degree or its equivalent for the position; or

(4) The nature of the specific duties are so specialized and complex that knowledge required to perform the duties is usually associated with the attainment of a baccalaureate or higher degree.

Id. § 214.2(h)(4)(iii)(A).

If USCIS grants the petition, the H-1B status is generally valid for three years, but it may

be extended for an additional three years, for a statutory maximum of six years. See Save Jobs

USA v. U.S. Dep’t of Homeland Sec., 105 F. Supp. 3d 108, 111 (D.D.C. 2015); 8 U.S.C.

§ 1184(g)(4). This default statutory maximum is subject to exceptions, however, one of which

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