U.S. moves closer to tougher H-1B wage standards as proposal passes federal review

The United States is one step closer to changing wage rules for foreign workers after a proposed rule affecting H-1B visas and the employment-based green card process passed federal review, a development that could ultimately push up minimum wage requirements for sponsored workers.The proposal was submitted to the Office of Management and Budget (OMB) for review two months ago, and the rule will likely be released for public comment shortly before finalization.The prevailing wage determines the minimum wage that U.S. employers must pay foreign employees based on occupation and location. Any changes to the framework will have a direct impact on recruitment costs, eligibility thresholds and sponsorship decisions. While detailed regulatory text has not yet been released publicly, immigration experts expect the proposal to revise how wage levels are calculated and potentially raise the required wage benchmarks for several occupations.During the early days of Donald Trump’s presidency, the U.S. Department of Labor introduced a rule in October 2020 that would significantly increase wages for H-1B workers and employment-based green card applicants by 40% to 100%.The final rule was successfully challenged in court and later withdrawn. Although the Biden administration attempted to enact a new set of wage rules, the plan was ultimately shelved.The move is significant for Indian professionals, who make up the vast majority of H-1B visa holders and a large share of U.S. employment-based green card applicants, particularly in the technology and healthcare sectors.According to a report released by the US Citizenship and Immigration Services, of the total number of H-1B petitions approved in fiscal year 2024 (including extensions), 71% (approximately 280,000) were Indian beneficiaries. While the public comment window for any proposed rule is open for 30 to 60 days, immigration experts believe the comment period may be limited to 30 days to speed up the finalization of the wage rule. The revised framework may apply to selected H-1B beneficiaries in the 2027 season. Registration for the H-1B cap visa is set to open next month. TOI had earlier reported that sponsoring employers are not keen on the H-1B salary cap season and the salary rules could be the final dent in the coffin.