US President Joe Biden has nominated Seema Nanda, a former CEO of the Democratic National Committee (DNC), to be the Department of Labour solicitor, the White House announced on Friday.
Her nomination to the senior administration position will have to be approved by the Senate.
She is returning to the Labour Department having served as its chief of staff and deputy solicitor in President Barack Obama's administration.
At the DNC, she was the CEO for about two years and stepped down last year to facilitate coordinating fundraising with arm of Biden's campaign.
Nanda, who has specialised in labour and employment law, is now a fellow at Harvard Law School's Labour and Worklife Program.
In prior stints in government, she has also led what is now the Justice Department's Office of Immigrant and Employee Rights Section and was a supervisor attorney in the National Labour Relations Board.
Nanda has also been the COO and vice president of Leadership Conference on Civil and Human Rights. She was appointed to the position by Vanita Gupta, who was the organisation's president and is now Biden's nominee for associate attorney general.
Confirmation of Gupta's nomination is still pending with the Senate.
Only one Indian American to a senior administration position, Surgeon General Vivek Murthy, has cleared the Senate.
On Thursday the White House formally withdrew the nomination of Neera Tanden for the cabinet-level position of the director of the Office of Management and Budget.
She ran into opposition from Senators of Democratic and Republican parties because of her intemperate tweets.
The Office of the Solicitor "helps our clients make America a magnet for jobs, equip workers with the skills they need to succeed in those jobs, protect them from injuries or illnesses caused by their work and assure workers that they receive promised benefits and statutorily-mandated compensation for their efforts," according to the department.
The Labour Department's solicitor oversees a staff of 700, including 400 lawyers, according to the department.