US Labor Proposes Higher Wages for H-1B Visas

The U.S. Department of Labor issued a notice of proposed rulemaking on Thursday to revise how prevailing wages are calculated for foreign workers under H-1B, H-1B1 and E-3 visas, as well as for permanent residency applications through EB-2 and EB-3 categories via the PERM labor certification process. The changes, part of the Trump administration's efforts to protect American workers, would raise minimum salary requirements by 21 to 33 percent, depending on the worker's experience level, making it more costly for employers to hire foreign talent.

Prevailing wages represent the average pay for similarly employed U.S. workers in a specific occupation and location. Under current rules, these wages follow a four-tier system based on experience. Entry-level positions, or Level 1, are set at the 17th percentile of wages for that job and area, while the highest tier aligns with the 67th percentile. The proposal would shift these to the 34th and 88th percentiles, respectively, effectively aligning entry-level pay closer to mid-level U.S. wages and boosting top-tier salaries. Department officials estimate this could increase annual pay by about $14,000 per worker.