Big Pay Boost Proposed for H-1B Workers

The US government has put forth a proposal to raise the minimum wages for hiring employees under the H1B visa program. The goal is to increase the wages by 30% from the previously set limits, with the aim of preventing foreign workers from undercutting the salaries of US nationals. The proposed rule, introduced by the US Department of Labor on March 27, seeks to elevate the minimum wages for four categories, spanning from entry-level to experienced positions. The rationale behind this move is that the current wage levels, which were established 20 years ago, are insufficient in safeguarding the interests of US workers.

As per the proposed rule titled 'Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States', the current prevailing wage for entry-level foreign workers stands at USD 73,279 per annum, with subsequent levels at USD 98,987 (Level II), USD 121,979 (Level III), and USD 144,202 (Level IV). The new rule, currently open for public comments until May 26, aims to increase the prevailing wages for entry-level workers to USD 97,746, marking a substantial 33.39% increase over the previous rates.

The proposed wages for Level II, III, and IV are USD 123,212 (24.47% increase), USD 147,333 (20.79% increase), and USD 175,464 (21.68% increase) respectively. It's important to note that prevailing wages vary from city to city. The Department of Labor has highlighted that the current methodology allows employers to hire foreign workers at wage levels significantly lower than those paid to similarly employed US workers. If implemented, these changes will have a significant impact on the prevailing wage levels used in the H1B, H1B1, E-3, and PERM labor certification programs.

The proposed rules have sparked diverse responses, with overwhelming support from some quarters and opposition from others. Critics argue that smaller companies may face challenges in hiring entry-level workers due to the higher prevailing wages. The public comment period will conclude on May 26, after which the Department of Labor will review the feedback and proceed to finalize the rule.