U.S. Proposes Higher Wage Requirements for H-1B Visa Workers
WASHINGTON — The U.S. Department of Labor has proposed new rules to significantly raise wage requirements for foreign workers under the H-1B visa program and other employment-based visas, aiming to better align pay with U.S. market standards.
Officials said the move is designed to protect American workers and curb misuse of the system by ensuring companies cannot hire foreign labor at lower wages than domestic employees.
“The Trump Administration is committed to ensuring that American workers are not disadvantaged by unfair wage practices,” Labor Secretary Lori Chavez-DeRemer said.
The proposal would overhaul how “prevailing wages” are calculated — the benchmark used to determine the minimum salary employers must offer foreign workers.
Under the new plan, entry-level wages would rise sharply, with the lowest tier increasing from roughly the 17th percentile of local wages to the 34th percentile. At the higher end, the top tier would shift from the 67th percentile to the 88th percentile.
Officials argue that current wage thresholds are set too low, allowing some employers to underpay foreign workers compared with Americans in similar roles.
According to government data cited in the proposal, H-1B workers earn about $10,000 less on average than U.S. workers in comparable positions, creating incentives for companies to favor lower-cost foreign labor.
Under existing rules, employers must pay either the prevailing wage or the actual wage paid to similarly employed U.S. workers, whichever is higher. However, critics say the prevailing wage floor has not kept pace with market conditions.
The proposed changes would raise that floor to better reflect workers with similar skills and experience, potentially increasing wages by an estimated $14,000 per worker annually.
The rule would apply only to new visa applications and would not affect existing approvals.
Officials said the goal is to restore fairness in the labor market by ensuring foreign workers do not undercut domestic wages.
The proposal will be open for public comment for 60 days following its publication in the Federal Register on March 27.
The H-1B visa program is the primary pathway for U.S. employers to hire highly skilled foreign workers, particularly in the technology sector. The proposed changes could have significant implications for both employers and foreign professionals, potentially raising labor costs while reshaping hiring practices. (Source: IANS)
