Court Dismisses Lawsuit Challenging H-1B Employer / Employee Third Party Placement Memo

The U.S. District Court for the District of Columbia dismissed Broadgate v. USCIS on August 13. The case challenged the January 8, 2010 Neufeld memo regarding the employer-employee relationship and third-party placement issues in H-1B petitions. This memo has made it tougher for consulting companies in the IT fields to get H-1B petitions approved. Other business and accounting consultancy practices have also been affected. The Court found that the Memorandum does not constitute a final agency action subject to judicial review. The Court concluded though that this memo only establishes interpretative guidelines for the law and does not bind the CIS officers in their H-1B determinations.

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