Amazon, Facebook and 50 others file lawsuit against Trump's ban of H1B visa

Tech giants such as Amazon Inc and Facebook Inc have taken a stand against ban on entry of foreign workers in the US, announced by Donald Trump.

The US President Donald Trump announced a Presidential proclamation announcing a temporary ban on the entry of certain foreign workers in the United States. Workers entering the country on H-1B visas and managers and specialised workers being transferred within a company on L visas — both visa types used by tech companies — will be the ones affected by it. Seasonal workers, who enter the country on H2B visas will also face the ban.

Trump defended his decision by saying that this will help preserve jobs for Americans after the economy has been badly hit by the pandemic.

However, this decision was not well received by tech-giants who feel this will restrict the functioning and growth of several Multi-National Companies (MNCs), based in the US.

Amazon Inc and Facebook Inc, on Monday,filed a legal brief backing a challenge against Trump on this issue. The lawsuit has been brought in California by few of the major US business associations.

In the brief, the companies argued that the visa restrictions will hurt American businesses, lead employers to hire workers outside the United States, and further damage the already struggling US economy.

The group of companies has alleged Trump of causing an irreparable damage to the US economy and workforce, on an assumption rather than facts.

“Global competitors in Canada, China, and India, among others, are pouncing at the opportunity to attract well-trained, innovative individuals,” the brief reads. “And American businesses are scrambling to adjust, hiring needed talent to work in locations outside our nation’s borders.”

Apple (AAPL.O), Microsoft (MSFT.O), Netflix (NFLX.O) and Twitter (TWTR.N) were among 52 companies that signed the brief, which was filed in a lawsuit brought by the National Association of Manufacturers, which represents 14,000 member companies, as well as in a similar lawsuit brought in Washington, D.C.

(With inputs from Reuters)