The Department of Labor wants to raise minimum wages for H-1B-linked green card holders, bringing them in line with American-born workers.
In a Federal Register filing, the DOL said its new rules would adjust the prevailing wage rules which apply to H-1Bs and EB-2 and EB-3 green cards to bring them more in line with similar salaries paid to U.
S.-born workers.DOL's analysis put the average minimum wage requirement lift at around $14,000 per year, potentially impacting entry-level H-1B roles the most.The proposal would overhaul the government’s long‑standing “prevailing wage” methodology, which sets the minimum salary employers must offer when hiring foreign workers on H‑1B visas or sponsoring immigrants for permanent residency under EB‑2 and EB‑3 green card categories.to change the H-1B, including a September 2025 presidential proclamation directing federal agencies to curb what the White House described as wage suppression and displacement of U.S. workers by lower‑paid foreign labor. Currently, the DOL uses a four‑tier wage system derived from Bureau of Labor Statistics data to determine prevailing wages. Critics inside and outside government have long argued the existing system allows employers to legally pay foreign workers well below market rates, particularly at the lower two wage levels, incentivizing companies to hire visa holders over similarly qualified American workers. The department’s proposal asserts those wage floors are “artificially low” and inconsistent with statutory requirements that wages reflect education, experience, and responsibility. If finalized, the rule would apply prospectively to new Labor Condition Applications for H‑1B workers and new or pending Prevailing Wage Determinations for PERM cases. Previously approved LCAs, PWDs, and green card certifications would not be reopened or invalidated.How Would Wages Change Under the Rule? Under the proposed rule, the DOL would significantly raise all four prevailing wage levels used across the H‑1B and PERM programs. Currently, entry‑level positions classified as Wage Level I are tied to roughly the 17th percentile of wages in a given occupation and region. The rule would nearly double that baseline, setting Level I wages at the 34th percentile. Wage Level II would rise from about the 34th percentile to the 52nd percentile, while Level III would increase from the 50th to the 70th percentile. The highest tier, Wage Level IV, would jump from the 67th percentile to the 88th percentile of the wage distribution. The DOL estimates the rule would result in billions of dollars annually in higher wages paid by employers to foreign workers, particularly in technology and engineering fields that make up the bulk of H‑1B sponsorships. The higher wage floors would apply uniformly to temporary H‑1B workers and to immigrants sponsored for permanent residence under PERM, a connection the department emphasized given that nearly 60 percent of PERM applicants are already employed in the U.S. on H‑1B visas. The agency said using a unified wage standard is necessary to prevent employers from shifting workers between visa categories to seek lower pay requirements, an area where critics of the program have long argued for change. DOL officials argue the changes would reduce incentives for outsourcing firms and staffing companies to rely on lower‑paid foreign labor, while encouraging employers to raise wages, invest in training, or recruit more U.S. workers. Critics, however, warn the rule could price smaller employers out of the H‑1B system, delay green card sponsorship for junior workers, and accelerate offshoring of certain jobs.:"DOL has a huge opportunity to better protect American workers, crack down on visa abuse, and better select truly exceptional applicants by adopting its proposed 'Experience Benchmarking' policy. Unfortunately, its other proposal will grant visas to thousands of foreign workers every year who earn less than similarly qualified Americans. The point of the prevailing wage system is to prevent that from happening.": “The Trump Administration is committed to ensuring that American workers are not disadvantaged by unfair wage practices. This proposed rule will help ensure that employers pay foreign workers wages that reflect the real market value of their labor, in addition to protecting the wages and job opportunities of American workers. The continued abuse of the H-1B program by certain bad actors will no longer be tolerated.”The proposal is open to public comment for 60 days, after which the administration could revise and finalize the regulation. If adopted largely as written, it would mark the most consequential increase in employment‑based immigration wage requirements in more than two decades., ours is different: The Courageous Center—it's not"both sides," it's sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you., you support a mission to keep the center strong and vibrant. Members enjoy: Ad-free browsing, exclusive content and editor conversations.Opinion
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