The US Approves a Plan to Increase H-1B and PERM Wage Requirements
A proposal that might increase prevailing salaries for PERM green card and H-1B visa cases has been approved by the US Department of Labor. The action raises the possibility of higher pay requirements for sponsored workers, while specifics are still unknown.
This is something to keep a careful eye on if you intend to work in the US on an H-1B visa or apply for a green card through your company.
A step has been taken by the US Department of Labor to modify the way wages are determined under the PERM (Program Electronic Review Management) labor certification program and the H-1B visa.
The Office of Management and Budget has now approved the proposal. This indicates that it is getting closer to going public. However, it is not yet a law.
So far, what has transpired?
A new rule proposed by the Department of Labor would update the pay criteria for:
Nonimmigrant workers under H-1B
Applicants for PERM labor certification, a component of the employment-based green card procedure
The Office of Management and Budget must examine any significant government rule before it is issued. This concludes that review.
Publication in the Federal Register is the next stage. The public will be able to view the complete details and leave comments once it is released.
The precise alterations are still unknown until then.
What Are the Potential Changes for PERM and H-1B?
The entire plan is currently under wraps, although it might raise the current wage levels.
Let's dissect that.
The lowest amount that an employer is required to pay a foreign worker for a particular position in a particular place is known as the "prevailing wage." It is intended to conform to local market norms.
In the event that the government increases the current salary levels:
Employers may need to increase the salary of H-1B employees.
The cost of PERM green card sponsoring may increase.
Certain positions might no longer be eligible under the existing pay scales.
To put it simply, some employers, particularly smaller ones, may find sponsorship more difficult due to increased pay requirements.
Why It Sounds Like This
The US government has already attempted to alter H-1B pay regulations.
A rule that would have reorganized the four-level prevailing wage system was finalized by the Department of Labor in 2021, during the first Trump administration. All wage minimums would have increased under the rule.
But it was contested in court. The Biden-era Department of Labor dropped that regulation following the administration shift.
The Biden administration later hinted at plans to make its own salary proposal public. After multiple delays, that endeavor was finally taken off the regulatory agenda.
A new idea has now passed government assessment. Whether it is the same as the 2021 version or something completely new is still unclear.
Implications for Qualified Foreign Workers
Nothing has changed as of yet. The suggestion needs to:
appear in the Federal Register.
Hold a period for public comment.
be determined by means of the official rulemaking procedure.
It could only take effect after all of that.
This is an early warning sign, though. If you're:
In the process of applying for an H-1B visa
Awaiting approval from PERM
Dealing with a job offer that requires sponsorship for a visa
It is smart to stay informed.
Eligibility, employer expenses, and long-term immigration strategy are all directly impacted by wage regulations.
What to Watch Next
Publication in the Federal Register will be crucial. At that point, the specifics are made public. Until then, it's all just conjecture.
For the time being, this is a development worth monitoring rather than a cause for concern. However, there may be a big effect on employment-based green cards and H-1B hiring if pay levels do rise.
The specifics will be crucial, as is typically the case with US immigration policy.
