US Advances Proposal to Revise Wage Rules for Foreign Workers
The United States has taken a significant step toward revising wage regulations for foreign workers, as a proposed rule affecting the H-1B visa and employment-based green card process has cleared federal review. This development could eventually lead to higher minimum wage requirements for sponsored workers, impacting hiring costs and eligibility thresholds.
Proposal Details and Review Process
The proposed regulation was submitted to the Office of Management and Budget (OMB) for review two months ago. It is now likely to be published shortly for public comment before finalization. Prevailing wages determine the minimum salary that US employers must pay foreign employees based on occupation and location. Any changes to this framework directly affect sponsorship decisions and financial planning for companies.
While the detailed regulatory text has not yet been released publicly, immigration experts anticipate that the proposal will modify how wage levels are calculated. This could potentially increase required salary benchmarks across multiple occupations, making it more expensive for employers to hire foreign talent.
Historical Context and Previous Attempts
During Donald Trump's presidency, the Department of Labor introduced a rule in October 2020 that significantly hiked wages for H-1B workers and employment-based green card applicants by 40% to 100%. However, this final rule was successfully challenged in court and later withdrawn. The Biden administration had initially sought to issue a fresh set of wage rules, but the plan was eventually put on the backburner until now.
Impact on Indian Professionals
This move is particularly significant for Indian professionals, who account for the overwhelming majority of H-1B visa holders and form a large share of employment-based green card applicants in the US. They are especially prominent in sectors such as technology and healthcare. According to a report issued by the USCIS, of the total H-1B applications (including extensions) approved in fiscal 2024, 71%, or approximately 280,000, were for Indian beneficiaries.
Timeline and Implementation
The public comment window for any proposed rule is typically open for 30 to 60 days. Immigration experts believe the comment period may be restricted to 30 days to expedite the finalization of the wage rule. If implemented, the revised framework could apply to H-1B beneficiaries selected in the 2027 season. Registrations for the H-1B cap visa are scheduled to open next month.
Sponsoring employers are reportedly not enthusiastic about the upcoming H-1B cap season, and the new wage rules could further complicate hiring decisions. This development underscores the ongoing challenges in US immigration policy and its effects on global talent mobility.
