A coalition of unions, employers and religious groups filed a lawsuit on Friday seeking to block President Donald Trump’s bid to impose a $100,000 fee on new H-1B visas for high-skilled foreign workers.
The lawsuit filed in federal court in San Francisco is the first to challenge Trump’s proclamation issued last month announcing the fee.
The United Auto Workers union, American Association of University Professors and other plaintiffs say Trump’s power to restrict the entry of certain foreign nationals does not allow him to override the law that created the H-1B visa program.
The program allows U.S. employers to hire foreign workers in specialty fields, and technology companies in particular rely heavily on workers who receive H-1B visas.
Critics of H-1Bs and other work visa programs say they are often used to replace American workers with cheaper foreign labor. But business groups and major companies have said H-1Bs are a critical means to address a shortage of qualified American workers.
Employers who sponsor H-1B workers currently typically pay between $2,000 and $5,000 in fees, depending on the size of the company and other factors.
Trump’s order bars new H-1B recipients from entering the United States unless the employer sponsoring their visa has made an additional $100,000 payment. The administration has said the order does not apply to people who already hold H-1B visas or those who submitted applications before September 21.