Business Standard

Wednesday, January 08, 2025 | 01:43 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

H-1B visa holders can now sue over fraud-linked visa revocations

H-1B visas will now have the right to take legal action if their visa is revoked due to multiple filings, charging their employer with fraud. Here's how

Photo: Bloomberg

Photo: Bloomberg

Surbhi Gloria Singh New Delhi

Listen to This Article

A US district court on Wednesday issued an unprecedented ruling stating that holders of H-1B visas will now have the right to take legal action if their visa is revoked due to multiple filings, charging their employer with fraud.

The decision came as a response to a lawsuit filed by 10 Indian nationals working under H-1B visas. Their legal action stemmed from the revocation of their visas, attributed to alleged fraud or misrepresentation by their employers. They demanded the right to contest these allegations.

Jonathan Wasden, the lawyer representing these visa holders, described the ruling as groundbreaking: "This is an unprecedented ruling recognising that beneficiaries of H-1B visas have a right to claim that USCIS must provide notice to them before revoking an H-1B visa," Bloomberg Law reported.

 

Background of the dispute

The controversy began with Sridhara Alavala, whose visa petition was initially filed by North Carolina-based Kronsys 15 years ago. Alavala secured one of the limited H-1B visas that allow foreign workers in specialised fields to work in the US. He initially worked for Wells Fargo under this visa before moving to a bank in the Chicago area, which supported his subsequent visa extensions and a green card application.

However, the case took a turn when the president of Kronsys was convicted and sentenced for visa fraud. The fraud involved filing H-1B petitions for non-existent in-house IT projects, placing workers in limbo until they could be assigned to third-party clients.

The legal proceedings

Years after the conviction, USCIS sought to revoke Alavala’s visa, citing the fraudulent activities of his former employer. Despite not being directly involved in the fraud, Alavala faced potential deportation due to the revocation of his visa. His legal argument stressed that USCIS should not penalise him for actions by Kronsys that he was unaware of and uninvolved in.

"Basically it’s fraud by association," Bloomberg Law quoted Wasden.

The case also highlights a broader crackdown by USCIS on the misuse of the H-1B visa system, particularly involving third-party contracting companies. This includes reforms to the H-1B visa lottery and stricter regulations for these companies.

Big win for H-1B visa holders

In their lawsuit, the aggrieved H-1B visa holders sought two things. Firstly, they wanted any finding of fraud or misrepresentation against them to be removed. Secondly, they wanted the cap number to be restored.

While the government agreed to the first point and rejected the second, the judge denied the government’s attempt to dismiss the second point, the attorney said calling the verdict an “incredible win for the H-1B workers”.

“This is an unprecedented ruling recognising that beneficiaries of H-1B visas have a right to claim that USCIS must provide notice to them before revoking an H-1B visa,” said Jonathan Wasden, attorney of the complainant. 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Apr 26 2024 | 10:25 AM IST

Explore News