The Department for Professional Employees, AFL-CIO (DPE) has formally objected to a Department of Homeland Security notice of proposed rule-making that would impose a one-time fee of US$103,265 on employers seeking premium processing of certain H-1B petitions. In a detailed policy letter dated 24 September, the labor coalition representing 24 national unions argues the fee would do little to curb outsourcing abuses and might ultimately be passed on to foreign workers through lower wages or poorer working conditions. DPE contends that wage-based allocation reforms and a true market-rate salary floor would be more effective than a flat surcharge at discouraging mass filings by staffing firms. The group also warns that deep-pocketed outsourcing companies could simply amortize the fee across multi-year contracts, while smaller U.S. employers—especially start-ups competing for STEM talent—would be priced out of the program. For corporate mobility teams, the six-figure levy—if finalized—would radically change H-1B cost modelling. Although the proposal would fund Department of Labor enforcement and USCIS technology upgrades, companies that rely on premium processing to meet project deadlines could face sticker shock. Human-resources budgets would need to account for the possibility that each cap-exempt or amended petition requiring the expedited service could cost more than the base filing fees, attorney costs and anti-fraud charges combined. The NPRM remains open for public comment for 30 days; observers expect a flurry of submissions from tech industry groups, universities and startup incubators. Should DHS proceed, the rule is almost certain to draw litigation on grounds that it exceeds statutory fee-setting authority and violates the Administrative Procedure Act’s proportionality requirements. Employers are therefore advised to accelerate any near-term H-1B amendments or transfers while current premium-processing fees (US$2,805) remain in effect. Long-term, the controversy may breathe new life into bipartisan bills such as the H-1B & L-1 Visa Reform Act and the Keep STEM Talent Act, both of which aim to raise wage floors and create alternative pathways to permanent residence—reforms that unions support over fee hikes.
