Court rejects J-1 au pair program’s challenge to state minimum wage rules

On December 2, 2019, the United States Court of Appeals for the First Circuit rejected an au pair program’s attempt to cast federal J-1 regulations as preempting state minimum wage laws.  The Court found unavailing the argument, among others, that the detailed nature of Department of State’s au pair J-1 regulations amounted to preemption over state minimum wage laws.  Court held that,

“...the mere fact that a state law implicates the interests of persons who are the subject of federal regulation, even with respect to immigration, does not alone provide a basis for inferring that the federal regulatory scheme was intended to preempt a field that encompasses such a state law, at least when it concerns a matter of such quintessentially local concern as employment.”

 In light of the decision, we recommend that J-1 sponsors in the 1st Circuit (Mass, NH, Maine, RI, and Puerto Rico) review their current employment practices against state minimum wage rules.  Although the case involved an au pair program, the decision has broader implications for J-1 exchange program sponsors in general--compliance with federal program rules will not necessarily shield sponsors from state law based claims.