9/4/2008

Fragomen Law Firm Audit Decision Leads to Litigation in Court - Details have yet to be released, but a report indicates that the Fragomen law firm filed a lawsuit against the U.S. Department of Labor relating to the agency's recent decision to audit all the labor certification applications filed by the nation's largest immigration law firm. 

There was some confusion on the development of this confrontation with some rumors that the law firm and the agency were negotiating to resolve the differences in issues, but the report of this lawsuit more or less implies that the dispute still continues and the firm has decided to fight to defend its right of counsel for its clients. 

Federal rules that limit the extent to which lawyers can advise companies on certain immigration matters are unconstitutional, according to a lawsuit filed by a law firm facing scrutiny from the U.S. Department of Labor.

The suit, filed n federal court in Washington, was brought by Fragomen, Del Rey, Bernsen & Loewy LLP, an immigration firm being audited by the Labor Department.

The Labor Department is auditing a law firm that helps companies secure green cards for foreign workers, according to a story by the WSJ’s Nathan Koppel. The Department alleges that New York law firm Fragomen, Del Rey, Bernsen & Loewy, which does immigration work for clients such as IBM, GE, and Bank of America, improperly advised some clients seeking permanent resident status for foreign workers. “Our actions on behalf of our clients have at all times been lawful and proper,” said firm chairman Austin Fragomen Jr. He added: “We do not tell our clients whom to hire or not hire.”

Here’s the problem: Foreign workers typically can remain in the U.S. on temporary visas for up to six years, prompting companies to sponsor the workers for green cards that would allow them to remain indefinitely. But, as a condition for green cards, companies must certify to the Labor Department they haven’t been able to find “minimally qualified” U.S. workers willing to fill the jobs at issue. The Labor Department contends its regulations limit the role lawyers can play in advising companies as to whether American workers can be deemed minimally qualified. In a recent statement, the department said these regulations safeguard “against the use of attorneys to find reasons not to hire U.S. workers.” 

The Department says the Fragomen firm improperly instructed some clients to contact Fragomen lawyers before hiring apparently qualified U.S. workers. “There is no legitimate reason to consult with immigration attorneys before hiring apparently qualified U.S. workers,” the department said in announcing it would audit every application Fragomen lawyers had filed for companies seeking green cards for foreign workers.

The audit, according to immigration lawyers, could deter companies from asking attorneys to help them decipher Labor Department rules. “Attorneys need to be involved in [the green-card] process,” said New York immigration lawyer Philip Kleiner. “It’s more complicated than tax work.”