The U.S. Department of Labor (DOL) on May 12 announced a proposed rule entitled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States.” The draft regulation would overhaul the prevailing-wage system used in the H-1B, H-1B1, E-3 and PERM labor-certification programs for the first time in two decades, lifting required wages by roughly 20 %–33 % across the four statutory skill levels. Under the proposal, the minimum salary for Level I (entry-level) specialty-occupation workers would rise to US $97,746, up 33 % from the current benchmark of about US $73,279. Level II wages would climb to US $123,212 (a 24 % increase), Level III to US $147,333 (+21 %), and Level IV to US $175,464 (+22 %). The Department argues that existing levels underprice foreign talent and undermine U.S. workers, while critics counter that the hikes will squeeze startups, research labs and rural hospitals that rely on international recruits. If finalized, the rule would affect thousands of U.S. employers that file an average of 600,000 labor-condition applications (LCAs) each year. Multinationals with large H-1B populations—particularly in information technology, engineering, health care and finance—would face material budget adjustments. Companies that use the H-1B as a pipeline for recent STEM graduates may need to re-evaluate head-count forecasts, offshoring strategies and cost-sharing arrangements with clients. The public-comment period is open through May 26. After reviewing feedback DOL may publish a final rule later this year, although litigation is likely; a similar 2020 wage rule was blocked by federal courts. Employers should model worst-case scenarios, audit their wage files for compliance, and brief hiring managers on the potential impact to offer letters for the FY 2027 cap season. For foreign nationals in the green-card queue, the proposal also raises the bar on prevailing wages used in PERM filings, potentially delaying sponsorship if budgets cannot accommodate the higher salary points. Immigration counsel recommend accelerating any planned PERM cases before a final rule takes effect and documenting business necessity for requested wage levels to survive audit scrutiny.
Source: Indian Eagle Travel Diary
