WASHINGTON (AP) — The United States is poised to tighten wage requirements for foreign workers employed under the H-1B visa program and those seeking employment-based green cards, a move that could significantly increase costs for U.S. companies sponsoring international talent. A proposed regulation, recently cleared for review by the Office of Management and Budget, is expected to be published soon for public comment.
The forthcoming rule aims to revise how prevailing wages are calculated for these workers, potentially raising salary benchmarks across numerous occupations. Prevailing wages dictate the minimum salary employers must pay foreign employees, based on their job and location. Changes to this framework directly impact hiring costs and sponsorship decisions.
This isn’t the first attempt by Washington to adjust H-1B wages. During the Trump administration, the Department of Labor introduced a rule in October 2020 that would have increased wages for H-1B workers and green card applicants by 40% to 100%. However, that rule faced legal challenges and was ultimately withdrawn. The Biden administration had initially planned to issue new wage rules but later paused those efforts.
The potential changes are particularly relevant for Indian professionals, who represent the vast majority of H-1B visa holders. Data from U.S. Citizenship and Immigration Services (USCIS) shows that Indian beneficiaries accounted for 71%, or approximately 280,000, of the H-1B applications approved in fiscal year 2024. Many of these workers are employed in the technology and healthcare sectors.
Immigration experts anticipate a limited public comment period – potentially only 30 days – to expedite the finalization of the rule. If enacted, the revised wage framework could apply to H-1B selections made in the 2027 season. Registration for the H-1B cap visa is scheduled to open next month, and some sponsoring employers are already expressing reservations.
The Department of Labor’s actions reflect ongoing debate about the H-1B program and its impact on the U.S. labor market. The program, intended for skilled workers in specialty occupations, has been criticized by some for potentially displacing American workers and driving down wages. The Department of Labor maintains that ensuring prevailing wages are competitive is crucial for protecting both foreign workers and the domestic workforce. https://www.dol.gov/agencies/eta/foreign-labor/wages