Case Information
*1 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ____________________________________
)
WASHINGTON ALLIANCE OF )
TECHNOLOGY WORKERS , )
)
Plaintiff, ) ) Civil Action No. 16-1170 (RBW)
v. )
)
U.S. DEPARTMENT OF )
HOMELAND SECURITY, et al., ) )
Defendants. )
____________________________________ )
MEMORANDUM OPINION
The plaintiff, the Washington Alliance of Technology Workers (“Washtech”), a collective-bargaining organization representing science, technology, engineering, and mathematics (“STEM”) workers, brought this action against the defendants, the United States Department of Homeland Security (“DHS”), the Secretary of Homeland Security, the United States Immigration and Customs Enforcement (“ICE”), the Director of ICE, the United States Citizenship and Immigration Services (“Citizenship and Immigration Services”), and the Director of Citizenship and Immigration Services (collectively, the “Government”) challenging, pursuant to the Administrative Procedure Act (the “APA”), 5 U.S.C. §§ 701–06 (2012), DHS’s 1992 regulation creating a twelve-month optional practical training program (“OPT or OPT Program”) for nonimmigrant foreign nationals on F-1 student visas (the “1992 OPT Program Rule”), see 8 C.F.R. § 214.2(f)(10)(ii)(1992), and DHS’s 2016 regulation extending the OPT Program by an additional twenty-four months for eligible STEM students (the “2016 OPT Program Rule”), see Complaint (“Compl.”) ¶¶ 1–5, 8; see also 81 Fed. Reg. 13,040 (Mar. 11, *2 2016) (codified at 8 C.F.R. §§ 214 and 274a). Currently pending before the Court is the Defendants’ Motion to Dismiss Plaintiff’s Complaint Pursuant to Fed. R. Civ. P. 12(b)(1) and (6) (“Gov’t’s Mot.”), ECF No. 18, which seeks dismissal of the Complaint on the grounds that this Court lacks subject matter jurisdiction to adjudicate Washtech’s complaint; Washtech lacks standing to pursue this action; Washtech’s challenge to the 1992 OPT Program Rule is time-barred; and Washtech has failed to state a claim upon which relief may be granted. Upon careful consideration of the parties’ submissions, [1] the Court concludes that it must deny in part and grant in part the Government’s motion to dismiss.
I. BACKGROUND
A. Statutory and Legal Background
An F-1 visa provides foreign national students valid immigration status for the duration of a full course of study at an approved academic institution in the United States. See 8 U.S.C. § 1101(a)(15)(F)(i). Since 1947, F-1 visa students, in conjunction with pursuing a course of study, have been able to engage in some version of OPT during their studies or on a temporary basis after the completion of their studies. See 8 C.F.R. § 125.15(b) (1947). And since 1992, F-1 visa students have been allowed to apply for up to twelve months of OPT, to be used either during or following the completion of their degree requirements. See 8 C.F.R. § 214.2(f)(10) (2016).
“In April 2008, DHS issued an interim final rule with request for comments extending the
[twelve]-month OPT [P]rogram by an additional [seventeen] months for F-1 [visa]
nonimmigrants with qualifying STEM degrees, to a total of [twenty-nine] months.” Gov’t’s
*3
Mem. at 4 (citing Extending Period of Optional Practical Training by 17 Months for F-1
Nonimmigrant Students with STEM Degrees, 73 Fed. Reg. 18,944 (Apr. 8, 2008) (the “2008
OPT Program Rule”)); see also Washtech’s Opp’n at 3. The goal of this extension was to help
alleviate a “competitive disadvantage” for United States employers recruiting STEM-skilled
workers educated in the United States under the H-1B visa program. 73 Fed. Reg. 18,944. H-1B
visas are temporary employment visas granted annually to foreign nationals in “specialty
occupations,” including many occupations in the STEM field. 8 C.F.R. § 214.2(h)(1)(ii)(B).
The number of H-1B visas issued on an annual basis is limited, and the program is
oversubscribed. See
In 2014, Washtech filed suit, challenging on procedural and substantive grounds, both the
underlying twelve-month 1992 OPT Program Rule and the seventeen-month extension added by
the 2008 OPT Program Rule. See Wash. All. of Tech. Workers v. U.S. Dep’t of Homeland Sec.
(“Washtech I”),
In response to this Court’s colleague’s ruling, DHS issued a notice of proposed rulemaking on October 19, 2015, requesting the submission of public comments prior to November 18, 2015. See Improving and Expanding Training Opportunities for F-1 Nonimmigrant Students with STEM Degrees, 80 Fed. Reg. 63,376 (Oct. 19, 2015). Whereas the 2008 OPT Program Rule had extended the OPT Program tenure by seventeen months for eligible STEM students, this notice instead proposed extending the OPT Program tenure by twenty-four months. See id. (explaining that “[t]his [twenty-four] month extension would effectively replace the [seventeen] month STEM OPT [Program] extension currently available to certain STEM students”). The notice also deviated from the 2008 OPT Program Rule in several other respects. See id. at 63,379–94 (discussing the proposed changes in detail). Namely, the notice contained a distinct change in tone—it dropped all references to the H-1B visa program that had been in the 2008 OPT Program Rule and instead explained that its purpose was to “better ensure that students gain valuable practical STEM experience that supplements knowledge gained through their academic studies, while preventing adverse effects to [United States] workers.” Id. at 63,376.
On March 11, 2016, after the expiration of the public notice and comment period, DHS issued the final version of the 2016 OPT Program Rule. See Improving and Expanding Training Opportunities for F-1 Nonimmigrant Students with STEM Degrees, 81 Fed. Reg. 13,040 (Mar. 11, 2016) (codified at 8 C.F.R. §§ 214 and 274a). The District of Columbia Circuit then dismissed as moot Washtech’s appeal challenging the 2008 OPT Program Rule and vacated this *5 Court’s colleague’s judgment in its entirety. See Washtech II, 650 Fed. App’x. at 14. On June 17, 2016, Washtech initiated this action.
B. Current Posture of Washtech’s Challenges to the OPT Program Washtech alleges that the 1992 OPT Program Rule and 2016 OPT Program Rule “exceed the authority of DHS [under] several provisions of the Immigration and Nationality Act (‘INA’),” Compl. ¶ 4, (Counts I and II); that the 2016 OPT Program Rule was issued in violation of the Congressional Review Act (the “CRA”) because of non-compliance with the notice and comment and incorporation by reference requirements of the statute (Count III), see id. ¶¶ 64– 80; and that the 2016 OPT Program Rule is arbitrary and capricious (Count IV), see id. ¶¶ 81–84. Also in its Complaint, Washtech names three of its members that have allegedly suffered injury as a result of the 1992 and 2016 OPT Program Rules—Rennie Sawade, Douglas Blatt, and Ceasar Smith (collectively, the “Named Washtech Members”). See id. ¶¶ 106, 137, 184. Sawade and Blatt work in computer programming, and Smith is a computer systems and networking administrator—all fields that fall within the STEM designation. [2] Id. Between April 2008 and March 2016, the Named Washtech Members unsuccessfully applied for several jobs in the STEM field with companies that either “placed job advertisements seeking workers on OPT,” see id. ¶ 140, or sought multiple OPT extension applications for their current workers, see id. ¶¶ 186–219. Washtech alleges that all three named members were unable to obtain the jobs for which they had applied because “the 2016 OPT [Program] Rule and the 1992 OPT [Program] Rule allow additional competitors into Washtech members’ job market,” thereby forcing *6 Washtech members to compete with foreign labor for employment opportunities. Washtech’s Opp’n at 15.
In response to Washtech’s Complaint, the Government has filed a motion to dismiss, arguing that Washtech lacks standing to challenge both the 1992 and 2016 OPT Program Rules, that Washtech’s “challenge to the 1992 Rule is time-barred,” and that Washtech “fails to allege any plausible claim for relief as to all counts as [Washtech] is not within the zone-of-interests protected by [the F-1 visa statute] and because [Washtech] fails to plead facts satisfying Rule 12(b)(6)’s plausibility standard.” Gov’t’s Mot. at 2. The Court will address each of the Government’s arguments in turn.
II. STANDARDS OF REVIEW
A. Rule 12(b)(1) Motion to Dismiss
Federal district courts are courts of limited jurisdiction, Kokkonen v. Guardian Life Ins.
Co.,
In deciding a motion to dismiss based upon lack of subject matter jurisdiction, the district
court “need not limit itself to the allegations of the complaint.” Grand Lodge of the Fraternal
Order of Police v. Ashcroft,
B. Rule 12(b)(6) Motion to Dismiss
A motion to dismiss under Rule 12(b)(6) tests whether the complaint properly “state[s] a
claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). Rule 8(a) requires only that a
complaint provide “a short and plain statement of the claim showing that the pleader is entitled to
relief.” Fed. R. Civ. P. 8(a)(2). But although “detailed factual allegations” are not
required, Ashcroft v. Iqbal,
“In evaluating a Rule 12(b)(6) motion, the Court must construe the complaint ‘in favor of
the plaintiff, who must be granted the benefit of all inferences that can be derived from the facts
alleged.’” Hettinga v. United States,
III. ANALYSIS
A. Constitutional Standing
As the starting point of its analysis, the Court must “begin . . . with the question of
subject matter jurisdiction.” Am. Freedom Law Ctr. v. Obama,
The irreducible constitutional minimum of standing contains three elements: (1) an injury
in fact; (2) causation; and (3) the possibility of redress by a favorable decision. Lujan
,
504 U.S.
at 560–61. Furthermore, the doctrine of ripeness “shares the constitutional requirement of
standing that an injury in fact be certainly impending.” Chlorine Inst., Inc. v. Fed. R.R. Admin.,
Furthermore, an association seeking to establish standing to sue on behalf of its members
must further show that “(1) at least one of its members would have standing to sue in his own
right, (2) the interests the association seeks to protect are germane to its purpose, and (3) neither
the claim asserted nor the relief requested requires that an individual member of the association
participate in the lawsuit.” Chamber of Commerce v. EPA,
1. Washtech’s Standing to Challenge the 1992 OPT Program Rule
Washtech first challenges the Government’s 1992 OPT Program Rule, alleging in Count I
of its Complaint that DHS’s “policy of allowing non-student aliens to remain in the United States
and work on student visas exceeds DHS authority under 8 U.S.C. § 1101(a)(15)(F)(i).” Compl.
at ¶¶ 54–61. In moving to dismiss Count I of Washtech’s Complaint, the Government contends
that Washtech “fails to satisfy any element of Article III standing as to its challenge to the 1992
[OPT Program] Rule.” Gov’t’s Mem. at 34–35 (“[Washtech] has not identified a single member
suffering a cognizable, let alone redressable, injury caused specifically by the pre-2008 OPT
program . . . .”). Washtech, in its opposition, fails to address the Government’s argument that it
lacks standing to challenge the 1992 OPT Program Rule. See generally Washtech’s Opp’n at
34–42 (addressing only the Government’s argument that its challenge to the 1992 OPT Program
Rule is time-barred, not the Government’s arguments that its challenge to the 1992 OPT Program
Rule is non-justiciable). Accordingly, the Court may treat the Government’s position regarding
Washtech’s lack of standing to pursue its challenge to the 1992 OPT Program Rule as conceded.
*11
See Hopkins v. Women’s Div., Gen. Bd. of Glob. Ministries,
In any event, the Court concludes that Washtech has failed to establish “that at least one
identified member ha[s] suffered or would suffer harm” resulting from the 1992 OPT Program
Rule. Summers v. Earth Island Inst.,
Consequently, the Government correctly notes that “[n]othing in [Washtech’s] Complaint articulates factual matter connecting any alleged injury to the [1992] OPT [P]rogram.” Gov’t’s Mot. at 35. Thus, because Washtech failed to address the Government’s argument that its claims regarding the 1992 OPT Program Rule are non-justiciable, and because Washtech has not identified a member of its association who has suffered any injury arising from the 1992 OPT Program and who would have standing to sue in his or her own right, Washtech does not have standing to challenge the 1992 OPT Program Rule on behalf of its members. [3] Accordingly, the Court must dismiss Count I of Washtech’s Complaint. [4]
2. Washtech’s Standing to Challenge the 2016 OPT Program Rule
For Article III purposes, the injury-in-fact requirement “helps to ensure that the plaintiff
has a ‘personal stake in the outcome of the controversy.’” Susan B. Anthony List, __ U.S. at __,
To demonstrate standing to challenge the 2016 OPT Program Rule, Washtech alleges that its named members have suffered the following five injuries: (1) a deprivation of “procedural right[s] to notice and comment [required by the APA],” Compl. ¶ 88, (2) “discrimination because [the 2016 OPT Program Rule] requires employers to provide mentoring programs to OPT participants that are not available to Washtech members,” id. ¶ 89, (3) “unfair competition with foreign workers” due to taxation differences between the H-B1 visa program and the F-1 visa program, id. ¶ 87, (4) a deprivation of “statutory labor protective arrangements,” id. ¶ 85, and (5) “increased competition [between] Washtech [m]embers [and] foreign workers,” id. ¶ 86. Additionally, Washtech contends that these injuries are traceable to the 2016 OPT Program Rule and are redressable by a favorable decision from the Court. See generally Compl. The Court will address each of Washtech’s alleged injuries to its named members in turn.
a. Deprivation of Procedural Rights Injury
Washtech alleges that “DHS . . . violated [its] procedural rights . . . by failing to put the
question of whether the OPT [P]rogram should be expanded beyond a year to notice and
comment.” Compl. ¶ 226. The Government argues that Washtech’s allegation is flawed because
it has not “establish[ed] an injury-in-fact flowing from the 2016 [OPT Program] Rule under the
procedural injury doctrine,” and because “DHS explicitly sought notice and comment on
precisely this issue, and many commenters commented on exactly this issue, including
*14
[Washtech’s] two counsel in this case.” Gov’t’s Mem. at 32 (citing
“Where [a] plaintiff[ ] allege[s] [an] injury resulting from [the] violation of a procedural
right afforded to [him or her] by statute and designed to protect [his or her] threatened concrete
interest, the courts relax—while not wholly eliminating—the issues of imminence and
redressability but not the issues of injury in fact or causation.” Ctr. for Law & Educ. v. Dep’t of
Educ.,
Washtech stumbles at the outset in its attempt to establish a procedural injury because it
has “failed to show that a procedural right sufficient for standing has been violated.” Ctr. for
Law & Educ.,
Despite this critical oversight, Washtech argues that “DHS’s reliance in the 2016 OPT
[Program] Rule on its conclusions made without public notice and comment in the 2008 OPT
[Program R]ule deprived Washtech of its procedural right to proper public notice and comment.”
Washtech Opp’n at 19–20 (citing Haw. Longline Ass’n v. Nat’l Marine Fisheries Serv., 281 F.
Supp. 2d 1, 37 (D.D.C. 2003) for the proposition that “[i]f an agency relies on substantive
conclusions made in a rule vacated for failure to give notice and comment in subsequent
rulemaking, it deprives the plaintiff of its procedural rights.”). However, in Haw. Longline
Ass’n, another member of this Court held that an agency’s subsequent rule was arbitrary and
capricious because the rule “rested on the conclusions of the vacated and unlawful [prior rule]
without reevaluating the merits of its analysis.”
b. Employment Discrimination Injury
Additionally, Washtech alleges that its members face employment discrimination because
the “2016 OPT [Program] Rule requires employers and universities to provide foreign workers
under the OPT [P]rogram mentoring programs without requiring such programs be made
*16
available to Washtech members and other American workers,” and because “employers seek[ ]
OPT workers to the exclusion of Americans.” Compl. ¶ 224–25. The Government responds that
Washtech’s members do not have a “legally protected interest in receiving mentoring programs
simply because someone else in the population benefits from such programs.” Gov’t’s Mem. at
30 (internal quotation marks omitted) (citing Lujan,
Washtech’s “mere assertion that something unlawful benefited [its] competitor[s],”
Already, LLC v. Nike, Inc., __ U.S. __, __,
Furthermore, in promulgating the 2016 OPT Program Rule, DHS received several *17 comments which suggested that the 2016 OPT Program Rule’s Training Plan “would induce employers and universities to discriminate against [United States] workers” and would also “discriminate against [United States] citizen and lawful permanent resident students because it would not require employers to offer an identical ‘program’ to such students.” 81 Fed. Reg. at 13097. In response, DHS noted that the Training Plan established by the 2016 OPT Program Rule “requires an employer to certify that the training conducted pursuant to the plan complies with all applicable Federal and State requirements relating to employment.” 81 Fed. Reg. at 13098. Also, DHS stated that
[n]either the rule nor the Training Plan . . . requires or encourages employers to exclude any of their employees from participating in training programs. And insofar as an employer may decide to offer training required by the regulation only to STEM OPT students, doing so does not relieve that employer of any culpability for violations of . . . any . . . federal or state law related to employment. Moreover, the training plan requirement is not motivated by any intention on the part of DHS to encourage employers to treat STEM OPT students preferentially. Rather DHS is requiring the Training Plan to obtain sufficient information to ensure that any extension of F-1 student status under this rule is intended to augment the student’s academic learning through practical experience and equip the student with a broader understanding of the selected area of study.
c. Unfair Competition Injury Washtech also asserts that its “members suffer an injury in fact from the OPT regulations because they create unfair competition from alien guest[-]workers.” Washtech’s Opp’n at 17 *18 (citing Compl. ¶ 87). Specifically, Washtech asserts that “[a]liens on F-1 visas are classified as [n]on-[r]esident [a]liens so that they and their employers do not pay Medicare and Social Security taxes as required for Washtech members [and t]his taxation treatment makes workers on OPT inherently cheaper to employ than Washtech members.” Compl. ¶¶ 220–21. The Government argues in response that “it is [the] specific, explicit Acts of Congress, not the 2016 Rule, which create[] any differential tax treatment,” Gov’t’s Reply at 12, and such third party acts are not sufficient to confer Washtech standing to challenge the 2016 OPT rule, see Gov’t’s Mem. at 27–28. The Court agrees.
“[T]he Supreme Court has made clear that a plaintiff’s standing fails where it is purely
speculative that a requested change in government policy will alter the behavior of regulated
third parties that are the direct cause of the plaintiff’s injuries.” Nat’l Wrestling Coaches Ass’n
v. Dep’t of Educ.,
Similarly, Washtech’s “unadorned speculation,” id. at 44, that DHS’s 2016 OPT Program
Rule creates unfair competition because of the taxation differences between foreign labor
employed under the F-1 visa provision and domestic labor is too speculative to confer Washtech
standing. Washtech argues that its “members do not have to show any job loss or that they
would have (or might have) obtained a job absent this unequal [tax] treatment. [Rather, it
contends that it] only needs to demonstrate that DHS’s rule creates unequal treatment, which the
unequal rates of taxation plainly provides.” Washtech’s Opp’n at 18 (citing Adarand
Constructors, Inc. v. Pena,
Washtech also contends that the tax differences stemming from the 2016 OPT Program
Rule create a “powerful incentive for employers to violate the discrimination provisions of the
[Immigration and Nationality Act (the ‘INA’)],” Washtech’s Opp’n at 19, and to “place
[unlawful] job advertisement[s] seeking alien guest[-]workers on the OPT [P]rogram to the
exclusion of American workers,” id. at 18. However, nothing in the 2016 OPT Program Rule
“permits or authorizes,” Nat’l Wrestling Coaches Ass’n,
Simply, Washtech invites the Court to speculate as to the “myriad [of] economical,
social, and political realities,” Arpaio v. Obama,
d. Deprivation of Statutory Labor Protective Arrangements Injury Washtech next alleges that “DHS’s OPT regulations allow college-educated labor in computer fields to work in the job market without complying with the statutory protections under the H-1B program, denying [its] members [ ] those protections.” Compl. ¶ 97. Through its opposition, Washtech appears to argue that it has union status standing due to the loss of labor-protective arrangements for its members to challenge the 2016 OPT Program Rule. See Washtech’s Opp’n at 9–10, 13. The Government contends that the cases Washtech relies upon are distinguishable from the facts in this case because “they arise in the context of labor-protective arrangements governing unions and the Interstate Commerce Commission, a *22 unique body of administrative law inapplicable here.” Gov’t’s Reply at 11 (noting that Washtech failed to cite any cases applying this reasoning to the INA). The Government also argues that
the fact that the H-1B visa provision, which governs the admission of nonimmigrants for employment purposes, contains explicit domestic labor protections, in no way creates a labor protection requirement for a separate, unrelated statute, the F-1 provision, which contains no such explicit requirement, and governs the entire different statutory purpose of the admission of nonimmigrant[ ] for educational purposes.
Id. at 11–12 (citations omitted). [7]
Here, Washtech has not met the standard required to establish an injury to itself or its
members sufficient for Article III purposes. Washtech contends that “it is the denial of the
statutory protection itself that is the injury in fact, not the secondary question of whether that
denial causes a harm, such as being hired for a specific job or winning a contract.” Washtech’s
Opp’n at 10; see also id. at 11 (“The injury here is that DHS OPT regulations deprive Washtech
members—and American STEM workers generally—of numerous statutory protections that
should rightly be applied to such foreign labor.”). As support, Washtech relies upon Warth v.
Seldin,
The Court finds that Washtech’s reliance on these two cases is to no avail because the
circumstances in both Seldin and Brotherhood of Locomotive Engineers are distinguishable from
the facts presented in this case. In Seldin, the plaintiffs challenged a “town’s zoning ordinance
. . . [that] effectively excluded persons of low and moderate income from living in the town, in
contravention of” their constitutional rights.
Also, in Brotherhood of Locomotive Engineers, the union plaintiffs “petition[ed] for
*24
review of three Interstate Commerce Commission decisions in which the Commission found it
lacked jurisdiction over several railroad transactions.”
In this case, Washtech has not asserted any right of action under a statute established by
Congress that creates “a statutory right or entitlement the alleged deprivation of which can confer
standing,” Seldin,
*26 Consequently, Washtech has not demonstrated that it has a statutory right or entitlement to statutory labor protections or that any such labor protection provisions are mandatory under the F-1 visa provision. Therefore, the Court concludes that Washtech has not demonstrated that its members have suffered an injury-in-fact based on alleged deprivation of statutory protections sufficient to confer standing to challenge the 2016 OPT Program Rule.
e. Increased Competition Injury Finally, Washtech asserts that its members have suffered an injury-in-fact due to increased competition because the 2016 OPT Program Rule “allows additional foreign workers to compete with [its] members that would not be in the job market but for DHS regulations.” Compl. ¶ 98. Invoking the requirements for the doctrine of competitor standing, the Government argues that Washtech fails to show an actual or imminent injury resulting from the 2016 OPT Program Rule because its allegations “are backward looking, focusing exclusively on events that precede the existence of the 2016 [OPT Program] Rule, that arise entirely under the now-defunct 2008 regime.” Gov’t’s Reply at 4. The Government also argues that Washtech’s named members are not “direct and current” competitors with STEM OPT recipients because, as employees with over thirty years of experience in the STEM field, they do not compete with students applying for entry-level jobs. Gov’t’s Reply at 3.
“The doctrine of competitor standing addresses the first requirement [of standing] by
recognizing that economic actors ‘suffer [an] injury in fact when agencies lift regulatory
restrictions on their competitors or otherwise allow increased competition’ against them.”
Sherley v. Sebelius,
Washtech asserts that its “injury in fact is the mere ‘exposure to competition’ created by
[the] regulatory actions.” Washtech’s Opp’n at 14 (citing Tozzi v. U.S. Dep’t of Health &
Human Servs.,
To this end, Washtech argues that its named members are direct and current competitors with beneficiaries of the 2016 OPT Program Rule because, even though currently employed, they remain “active participants in the programming and system administration job market.” Washtech’s Opp’n at 23. Nonetheless, the Government contends that Washtech “provide[s] no basis for concluding [that its named members] ‘personally compete[] in the same arena’ as beneficiaries of the 2016 [OPT Program] Rule, . . . let alone that they do so directly and currently.” Gov’t’s Mem. at 16 (citations omitted) (first alteration in original). In assessing this issue, the Court finds the District of Columbia Circuit’s decision in Mendoza to be particularly instructive.
In Mendoza, the Circuit found that former sheepherders had standing to challenge Department of Labor regulations affecting the wages and working conditions in the herding market because the former herders sought to return to the market, but were prevented from doing so by increased competition from foreign labor as a result of the regulations. See 754 F.3d at *29 1011–14. In its assessment, the Circuit concluded that the plaintiffs, who “averred [that] they [were] experienced and qualified herders” and “ha[d] not worked as herders since 2011 and may not have applied for specific herder jobs since that time,” made a clear affirmation of “their desire to work as herders and . . . their intention to do so if wages and working conditions improve.” Id. at 1013. The Circuit noted that
“[t]he plaintiffs are not removed from the herder labor market simply because they do not currently work as herders and have not filled out formal job applications. A person can involve himself in a job market by means other than submitting formal applications. Job searches are not such rigid processes. The plaintiffs continue to monitor the herder job market with the intention of applying for work in the industry if conditions improve . . . . And because the plaintiffs retained ties to the industry, it was reasonable for them to conclude that formally applying for jobs would be futile when they would not accept a job offering the prevailing wage and working conditions.
Id. at 1014 (internal citations omitted). In sum, the Circuit concluded that the Mendoza plaintiffs “presented more than ‘general averments’ and ‘conclusory allegations.’” Id. Rather, they “attested to specific experience that qualifies them to work as herders; the particular working conditions that led them to leave the industry; the specific wages and conditions they would require to accept new employment as workers; [and] the manner in which they have kept abreast of conditions in the industry.” Id.
In light of the Circuit’s reasoning in Mendoza, the Court finds for the following reasons Washtech’s allegations, albeit not in significant depth, sufficient to demonstrate that its named members are in direct and current competition with beneficiaries of the 2016 OPT Program Rule. In its Complaint, Washtech proffers evidence of its named members applying for STEM jobs and evidence of those employers seeking extensions of its current OPT employees. See Compl. ¶¶ 106–219. But, unlike the plaintiffs in Mendoza, Washtech has not provided the Court with any affidavits from its named members that indicate their involvement in the STEM labor market. *30 Nonetheless, Washtech asserts that its named members “are members of a labor union, . . . are currently working in specific fields in which aliens with degrees under the 2016 OPT [Program] Rule are authorized for extended work periods, and frequently apply for jobs in those fields.” Washtech’s Opp’n at 22–23 (citing Compl. ¶¶ 106–209). Given the broad interpretation of what amounts to participating in the relevant market under the Circuit’s decision in Mendoza, see 754 F.3d at 1013 (“We believe the district court took too narrow a view of what qualifies as participating in the herding labor market.”), Washtech has clearly identified members that actively participate in the STEM labor market, and therefore, are in direct and current competition with beneficiaries of the 2016 OPT Program Rule.
Even on this record, the Government attempts to distinguish the facts in Mendoza from
those at issue in this case. The Government argues that the Mendoza plaintiffs “were ‘willing
and available to work as herders’ in the precise types of jobs foreign laborers had already taken
at depressed wages.” Gov’t’s Reply at 7 (quoting Mendoza,
In addition, the Government argues that since Washtech’s named members were not
seeking employment as of the date of the Complaint, their “claims of past job applications do
‘nothing to establish a real and immediate threat that [Washtech’s members] would again be
[injured in the future.]’” Gov’t’s Mem. at 18 (quoting Los Angeles v. Lyons,
Washtech has also pleaded facts sufficient to establish causation and redressability. The Government argues that “[n]othing in [Washtech’s] Complaint demonstrates that the 2016 [OPT Program] Rule is responsible for [Washtech’s named] members’ underemployment,” Gov’t’s Mem. at 22, which “can be attributed to [a] myriad [of] potential and interlocking causes,” such *32 as “their insufficient qualifications or skills, macroeconomic trends, increased industry demand for entry-level rather than experienced computer programmers or other factors,” id. at 23. The Government also argues that Washtech’s purported competitive injury is “unlikely to be redressed by a favorable decision, asserting that invalidating the 2016 [OPT Program Rule] would neither eliminate competition for computer jobs, nor guarantee improved economic conditions or job opportunities.” Id.; see also Gov’t’s Reply at 9–10 (citing cases for its proposition that Washtech’s traceability and redressability arguments “depend on a ‘chain of events’ of speculative, future conduct by third parties”).
However, in the competitor standing context, the causation requirement is satisfied when
an agency allows competitors into the plaintiff’s market, and the redressability requirement is
met when vacating a regulation would remove those competitors. See Honeywell Intern. Inc. v.
EPA,
B. Zone of Interests
Even though the Court has determined that Washtech has satisfied the constitutional
requirements for standing, the Court’s inquiry does not end here; the Court “must also inquire
whether [Washtech] fall[s] within the class of persons whom Congress has authorized to sue
under the [APA].” Mendoza,
“[I]n considering whether [Washtech is] authorized to sue under [the applicable statute,
the Court] look[s] to whether [it] fall[s] within the zone of interests sought to be protected by the
substantive statute pursuant to which the Department of [Homeland Security] acted.” Mendoza,
The Government alleges that Washtech “fails to satisfy the zone of interest test with *35 respect to section 1101(a)(15)(F)(i)” of the INA relating to the F-1 visa status provision. Gov’t’s Reply at 19. Specifically, the Government contends that the “protection of domestic workers was not among Congress’s concern in enacting and re-enacting the F-1 status provision.” Gov’t’s Mem. at 40 (quoting Programmers Guild, Inc. v. Chertoff, 338 Fed. App’x. 239, 244 (3d Cir. 2009)). Washtech, however, contends that the protection of American workers is arguably within the zone of interests of section 1101(a)(15)(F)(i), because DHS has recognized this interest under this particular provision, see Washtech’s Opp’n at 27, and because Congress, the Supreme Court, and several lower courts have recognized this interest in its assessment of the INA, see id. at 28–30.
Washtech’s interest in protecting American workers is one that arguably falls within the
zone of interests protected by section 1101(a)(15)(F)(i), and therefore, Washtech has prudential
standing to challenge the 2016 OPT Program Rule. Broadly speaking, Washtech argues that
DHS used the F-1 visa provision in promulgating the 2016 OPT Program Rule to circumvent
Congressional restrictions imposed on H-1B visas. In its Complaint, Washtech asserts that the
2016 OPT Program Rule exceeds DHS’s authority because it “conflicts with the statutory
provisions of 8 U.S.C. §§ 1182(a)(5), 1182(n), 1184(a)(1), 1184(g), and 1127(a)(1)(C)(i),” which
impose limitations on H-1B visas, see Compl. ¶ 63; see also Washtech’s Opp’n at 26–27 (citing
Compl. ¶ 4). Despite these allegations, the Government seeks to confine Washtech’s allegations
solely to violations of the F-1 visa program. See Gov’t’s Mem. at 37–42. But, “[i]n determining
whether a petitioner falls within the ‘zone of interests’ to be protected by a statute, [the Court
can] not ‘look [only] at the specific provision said to have been violated in complete isolation[,]’
but rather in combination with other provisions to which it bears an ‘integral relationship.’”
Nat’l Petrochemical & Refiners Ass’n v. EPA,
The Government contends that the H-1B visa provision and its related statutes are not integrally related to the F-1 visa provision. See Gov’t’s Reply at 21–22 (opining that “[n]one of these provisions [cited by Washtech] are related to section 1101(a)(15)(F)(i),” but are rather “integrally related to each other”). As support for its position, the Government argues that Congress had ample opportunities to subject the F-1 visa provision to the same domestic labor protections as the H-1B visa provision, but elected not to, which “suggests ‘that protection of domestic workers was not among Congress’s concerns in enacting and re-enacting the F-1 status provision, and it tends to suggest that Congress [ ] was concerned with increasing the country’s pool of available STEM workers.’” Id. at 24 (quoting Programmers, 338 Fed. App’x. at 244). However, Congress’s election to not extend certain domestic labor protections provided to H-1B visa holders to F-1 visa holders does not necessarily imply that the two statutory provisions are not integrally related. Rather, a review of the codification scheme of the F-1 and H-1B visa provisions’ and the class of individuals targeted by the two visa provisions suggests that they are integrally related. As another member of this Court reasoned,
[t]he provisions are part of the same statute; indeed, they are contained within a single subsection of the statute. Even more important than the statute’s codification scheme, though, is the substantive relationship between the provisions. F-1 is directed at students studying at an American academic institution, including colleges and universities. H-1B is limited to individuals who have completed their bachelor’s degree. As such, F-1 and H-1B perform the interlocking task of recruiting students to pursue a course of study in the United States and retaining at least a portion of those individuals to work in the American economy.
Washtech II,
C. Ripeness
In addition to challenging Washtech’s standing to contest the 2016 OPT Program Rule, the Government contends that this “case is not fit for review because it requires too much conjecture and speculation by the Court given [Washtech’s] sparse and unconvincing allegations concerning injury that fail to allege any cognizable harm.” Gov’t’s Mem. at 33. The Government also asserts that Washtech’s “challenge ‘depends on future events that may never come to pass, or that may not occur in the form forecasted,’” Gov’t’s Reply at 6 n.5, and therefore, Washtech’s “challenge is not ripe for adjudication,” Gov’t’s Mem at 32. In response, Washtech argues that its “plead[ed] injuries occur at this very moment and the case is ripe for review” because
the 2016 OPT [Program] Rule . . . has been allowing competitors into Washtech’s market since, May 10, 2016. . . . Furthermore, the 2016 OPT [Program] Rule explicitly authorizes aliens working prior to that date under the 2008 OPT [Program] Rule’s [seventeen]-month extension to continue to work under the 2016 OPT [Program] Rule and to extend the work period to [twenty-four] months.
Washtech’s Opp’n at 22.
The ripeness doctrine, which “generally deals with when a federal court can or should
decide a case,” Am. Petroleum Inst. v. EPA,
Here, Washtech has demonstrated an “injury to its members of sufficient immediacy and
ripeness to warrant judicial intervention.” Seldin,
Although the Government argues that “reviewing the 2016 [OPT Program] Rule’s
validity based on [Washtech’s] non-existent record and speculative assertions would be
tantamount to expending ‘resources on what amounts to shadow boxing,’” Gov’t’s Mem. at 34
(quoting Devia v. Nuclear Regulatory Comm’n,
D. Washtech’s Claims under Rule 12(b)(6)
Having concluded that Washtech has standing to pursue its challenges to the 2016 OPT Program Rule, i.e., Counts II-IV of the Complaint, the Court now considers whether Washtech has pleaded sufficient facts that plausibly demonstrate entitlement to the relief requested. The Government contends that Washtech has not satisfied its pleading burden to “satisfy[ ] Rule 12(b)(6)’s plausibility standard as to [its] APA claims,” and therefore, dismissal of its APA claims is warranted. Gov’t’s Mem. at 2. The Court will address the Government’s arguments regarding the alleged procedural APA violations first, and then turn to an analysis of the Government’s arguments with respect to the alleged substantive APA violations.
1. Washtech’s Procedural Violations Claims
Count III of Washtech’s Complaint asserts that the 2016 OPT Program Rule was promulgated without complying with the requirement of the Congressional Review Act (“CRA”) for proper notice and comment as to “whether aliens should be allowed to work beyond one year under the OPT program.” Compl. ¶ 66. Additionally, Washtech alleges that “DHS failed to comply with the incorporation by reference requirements of 1 C.F.R. part 51,” Compl. ¶ 80, when it incorporated into the rule “an external list” [11] published on its website, Compl. ¶ 73. The Government argues that “the CRA explicitly bars any claim or relief premised on a *41 ‘determination, finding, action, or omission’ of any CRA requirement, and flatly bars any ‘judicial review’ of such issues.” Gov’t’s Mem. at 42 (citing 5 U.S.C. § 805). The Government also contends that Washtech’s allegation that DHS “failed to subject the question of whether the OPT program should be expanded beyond a year to actual notice and comment as part of the 2016 [OPT Program] Rule is facially absurd [because] DHS explicitly sought notice and comment on this issue, and responded to comments on it.” Id. (internal quotation marks and citations omitted). Lastly, with respect to Washtech’s allegation that the 2016 OPT Program Rule does not comport with the incorporation by reference requirements, the Government argues that this claim must fail because Washtech’s Complaint does not allege that “(1) the STEM list is required to be published in full in the Federal Register (which it is not), (2) Washtech lacked actual and timely notice of the STEM list (which it had), or (3) how Washtech’s members have been adversely affected by DHS’s inserting a weblink into its Rule.” Id. at 43 (footnote and citation omitted).
Despite the extensive arguments the Government advanced in its motion to dismiss,
Washtech failed to substantively address any of these arguments in its opposition and its
responses to the Government’s arguments are woefully inadequate to avoid dismissal pursuant to
Rule 12(b)(6). See generally Washtech’s Opp’n at 43–44. Thus, the Court may treat the
Government’s position with respect to Count III as conceded. See Hopkins, 284 F. Supp. 2d at
25 (“It is well understood in this Circuit that when a plaintiff files an opposition to a dispositive
motion and addresses only certain arguments raised by the defendant, a court may treat those
arguments that the plaintiff failed to address as conceded.” (citations omitted)).
[12]
In any event,
Washtech’s Count III procedural allegations fail to state a claim sufficient to demonstrate
*42
entitlement to relief. First, the CRA “denies courts the power to void rules on the basis of
agency noncompliance with the [CRA as t]he language of [section] 805 is unequivocal and
precludes review of [such] claim.” Montanans for Multiple Use v. Barbouletos,
2. Washtech’s Substantive APA Claims
Through Count II of its Complaint, Washtech asserts that the 2016 OPT Program Rule exceeds DHS’s authority. The Government argues that Washtech’s “single, conclusory sentence in paragraph [sixty-three] asserting [that] the Final Rule exceeds DHS’s statutory authority (Count II) without more is facially implausible given the absence of any alleged facts supporting this conclusory legal claim.” Gov’t’s Mem. at 45. Washtech failed to address the Government’s arguments regarding Count II in its opposition. See generally Washtech’s Opp’n. Therefore, as *43 previously indicated, the Court may treat the Government’s position regarding Count II as conceded, see supra Part III.2.D.1, which it deems appropriate to do.
In regards to Count IV of its Complaint, Washtech contends that the 2016 OPT Program Rule was implemented arbitrarily and capriciously because it “requires employers to provide foreign-guest workers OPT mentoring without requiring that such program be provided to American workers” and “singles out STEM occupations for an increase in foreign labor through longer work periods with no justification.” Compl. ¶¶ 82–83. The Government argues that Washtech’s disagreement “with DHS’s policy choices, without more, does not make those choices inconsistent with the discretion vested in it by law, let alone actionable under the APA.” Gov’t’s Mem. at 44 (citation omitted). In addition, the Government asserts that Washtech has not “provide[d] some notice of why a court might find it arbitrary and capricious for DHS to require F-1 students to plan, document, and engage in training as a condition of receiving a benefit, without guaranteeing the same training to the entire [United States] worker population.” Id. at 44–45; see also id. at 45 (“[Washtech’s] failure to allege a single ‘justification’ that is somehow unreasonable renders this claim implausible on its face . . . .”). In response, Washtech argues that its Complaint includes the allegation that the “2016 OPT [Program] Rule singles out STEM occupations for an increase in foreign labor through longer worker periods with no justification,” Washtech’s Opp’n at 43 (citing Compl. ¶ 83), and that it “has not yet received a copy of the full administrative record necessary to determine the full extent of arbitrary and capricious action,” id. at 44.
Washtech’s conclusory allegations do not meet the pleading standard required under
Iqbal, and therefore, it has not alleged a claim of entitlement to relief. To demonstrate that it has
proffered sufficient allegations to support its proposition that the 2016 OPT Program Rule is
*44
arbitrary and capricious, Washtech cites only one allegation it its Complaint. See id. at 43
(noting that the Complaint alleges that “[t]he 2016 OPT [Program] Rule singles out STEM
occupations for an increase in foreign labor through longer worker periods with no
justification”). But, this response is of no avail to Washtech because this allegation does not
provide the Court with the ability to reasonably infer that the 2016 OPT Program Rule is
somehow arbitrary and capricious; this allegation simply states that DHS provided no
justification for implementing the 2016 OPT Rule. Thus, despite the extensive explanations
provided in the 2016 OPT Program Rule, including the explanations provided in the notice of
proposed rulemaking on which Washtech publicly commented, Washtech has not alleged any
facts from which the Court can plausibly conclude that the 2016 OPT Program Rule is arbitrary
and capricious. And, although Washtech claims that it has yet to receive the full administrative
record, it has not identified, nor has the Court been able to identify, any legal authority that
relaxes a plaintiff’s pleading burden due to the fact that the plaintiff has not received the
complete administrative record. Accordingly, because Washtech’s threadbare legal conclusions
are not sufficient “to permit the [C]ourt to infer more than the mere possibility of misconduct,”
Iqbal,
IV. CONCLUSION
For the foregoing reasons, the Court concludes that it must grant in part and deny in part the Government’s motion to dismiss Washtech’s claims. Specifically, the Court must grant the Government’s motion to dismiss pursuant to Rule 12(b)(1) with respect to Count I of Washtech’s Complaint for lack of standing to challenge the 1992 OPT Program Rule, but it must deny the Government’s motion to dismiss pursuant to Rule 12(b)(1) in all other respects because Washtech has demonstrated that it has standing to challenge the 2016 OPT Program Rule, and *45 because the Court has concluded that Washtech’s challenge is ripe for judicial review. However, because Washtech has not alleged facts sufficient to survive the Government’s Rule 12(b)(6) motion to dismiss, the Court must grant the Government’s motion due to Washtech’s failure to plausibly state claims that are entitled to relief.
SO ORDERED this 19th day of April, 2017. [13]
REGGIE WALTON United States District Judge
Notes
[1] In addition to the filings already identified, the Court considered the following submissions in reaching its decision: (1) the Defendants’ Memorandum and Points of Authorities in Support of the Motion to Dismiss (“Gov’t’s Mem.”); (2) the Plaintiff’s Response to Defendant[s’] Motion to Dismiss (“Washtech’s Opp’n”); and (3) the Defendants’ Reply in Support of the Motion to Dismiss (“Gov’t’s Reply”).
[2] Although STEM has no standard definition, the fields in which Washtech members work are commonly considered part of the same job market. Indeed, the 2016 OPT Program Rule consistently refers to the “STEM field” to describe the job market in question, and DHS maintains a list of fields within the STEM umbrella on its website pursuant to 81 Fed. Reg. 13,118. See Washtech’s Opp’n at 8, 13; see also STEM Designated Degree Program List, U.S. Immigration Customs and Enforcement, https://www.ice.gov/sites/default/files/documents/Document/2016/stem-list.pdf. Sawade, Blatt, and Smith all work in professions that are on DHS’s list, see Compl. ¶¶ 106, 137, 184, therefore qualifying them as STEM workers.
[3] The parties devote a significant portion of their submissions on whether Washtech’s challenge to the 1992 OPT
Program Rule is time-barred by the six-year statute of limitations period provided by 28 U.S.C. § 2401(a), or is
exempt from this statute of limitations period based on the reopening doctrine, which permits pursuit of an otherwise
time-barred challenge to a prior rule if “the agency has undertaken a serious, substantive reconsideration of the
existing rule . . . [or] substantively chang[ed it].” Mendoza v. Perez,
[4] Washtech argues that “[a]n order dismissing Washtech’s challenge to the entire OPT program would be inconsistent with the [District of Columbia] Circuit’s holding in Washtech II that the issues with the 2008 OPT [Program] Rule are moot.” Washtech’s Opp’n at 42. In other words, Washtech claims that “[i]f [it] can only challenge the provisions of the 2016 OPT [Program] Rule (and not the entire policy of authorizing guest[-]workers on F-1 student visas), the only thing [it] can accomplish in this action is to invalidate the 2016 OPT [Program] Rule.” Id. Therefore, Washtech contends that “[v]acating the 2016 OPT [Program] Rule would then restore the regulatory scheme that was previously in place: the 2008 OPT [Program] Rule that the [District of Columbia] Circuit held was moot.” Id. However, this is not so because the Circuit, in dismissing the appeal of Washtech II as moot, stated that “the 2008 [OPT Program] Rule is no longer in effect.” 650 Fed. App’x at 14. Thus, invalidating the 2016 OPT Program Rule would not leave in effect the 2008 OPT Program Rule, as that rule no longer exists; rather, the 1992 OPT Program Rule would remain in effect. Accordingly, the Court finds that this argument advanced by Washtech has no merit.
[5] Washtech cites various cases for the proposition that “disparate treatment is an injury in fact.” Washtech’s Opp’n
at 21 (citing Ne. Fla. Chapter of Associated Gen. Contractors of Am. v. City of Jacksonville,
[6] In the 2016 OPT Program Rule, DHS noted the receipt of voluminous comments regarding taxation issues. See 81 Fed. Reg. at 13056–58. Among those comments were observations that “any employer savings related to tax laws are at least in part offset by administrative costs, legal fees, and staff time related to securing the authority under [United States] immigration law to employ the foreign-born worker,” and that some F-1 visa holders “eligible for STEM OPT extensions, may not be exempt [from taxes] because they have already been in the United States for parts of five calendar years.” Id. at 13058.
[7] Additionally, the Government argues that Washtech’s “claim alleging deprivation of alleged statutory protections
‘goes to the merits,’ and cannot serve as the basis of [Washtech’s] injury theory” for the purposes of establishing
standing. Gov’t’s Reply at 10 (citing Sherley v. Sebelius,
[8] Washtech also cites Clinton v. New York,
[9] “In determining whether a complaint states a claim, the court may consider the facts alleged in the complaint,
documents attached thereto or incorporated therein, and matters of which it may take judicial notice.” Abhe &
Svoboda, Inc. v. Chao,
[10] The parties do not dispute the second element of the prudential ripeness doctrine, i.e., whether the parties will experience any hardship if the Court withheld consideration of Washtech’s challenge to the 2016 OPT Program Rule. See Gov’t’s Mem. at 32–34 (addressing only whether Washtech’s challenge is judicially fit and ultimately ripe for review); see also Washtech’s Opp’n at 22 (responding only to the Government’s argument that its challenge was not ripe for judicial review).
[11] This external list is “the STEM Designated Degree Program List, which [is] a complete list of qualifying degree program categories, published on the Student and Exchange Visitor Program Web site at http://www.ice.gov/sevis.” Compl. ¶ 71.
[12] As previously noted, this Court’s prior decision in Hopkins was affirmed by the Circuit. See Hopkins, 98 F. App’x at 8.
[13] An Order consistent with this Memorandum Opinion is issued simultaneously with this opinion.
