The U.S. Department of Labor has proposed a major increase in the minimum wages employers must pay H-1B visa workers, a move that could significantly raise the cost of hiring foreign professionals in technology, engineering, healthcare and other skilled fields.
The proposed rule, published in late March, would revise how prevailing wages are calculated for H-1B, H-1B1, E-3 and PERM employment-based green card cases. The Department of Labor says the change is intended to better align foreign worker pay with wages earned by similarly employed U.S. workers and to prevent employers from using visa programs to undercut domestic labour.
Under the proposal, wage floors could rise by about 21 percent to 33 percent across different experience levels. The entry-level wage, known as Level I, would effectively move closer to the current Level II wage, sharply raising pay requirements for junior foreign workers.
The rule was prompted by a September 2025 presidential proclamation directing the Labor Department to review H-1B wage levels amid concerns about misuse of the programme. It closely resembles a wage rule issued during Trump’s first administration in 2020, which was later blocked in court and never fully implemented.
If finalised, the change could have major consequences for employers that rely on H-1B workers, especially technology companies, universities, hospitals, consulting firms and smaller businesses that sponsor entry-level or mid-level foreign professionals. Some employers may absorb the higher costs, while others could reduce sponsorship, delay filings or shift hiring strategies.
Immigration lawyers and business groups warn that the proposal may make it harder for early-career foreign graduates and skilled workers to secure U.S. jobs, particularly in high-cost regions or fields where salaries already vary widely by location. Supporters argue that higher wage standards would protect U.S. workers and ensure that H-1B hiring is reserved for genuinely high-skilled roles rather than lower-cost labour substitution.
The proposal also affects PERM labour certification, a key step in many employment-based green card cases. That means the rule could influence not only temporary work visas but also long-term immigration pathways for foreign professionals.
A public comment period is open through late May, after which the Labor Department may revise, delay or finalise the rule. Until then, the proposal is not yet in force, but employers and visa applicants are already preparing for what could become one of the most consequential H-1B wage changes in years.
