Washington, March 27: The U.S. Department of Labor has proposed new rules aimed at increasing wages for foreign workers under the H-1B and other visa programs.
This initiative seeks to align foreign employee wages with the U.S. market. Officials believe this will protect American workers and reduce system abuse.
Labor Secretary Lori Chavez-DeRemer stated, “The Trump administration is committed to ensuring that American workers are not powerless against unfair wage practices.”
Under the proposal, the method for calculating “prevailing wages” will change. These wages set the minimum pay that employers must provide to foreign workers.
The new plan will significantly raise entry-level wages. The minimum threshold will rise from approximately the 17th percentile to the 34th percentile, while the maximum will increase from the 67th percentile to the 88th percentile.
Officials argue that current wage levels are too low, allowing companies to hire cheaper foreign workers over American employees.
Government data indicates that H-1B workers often earn less than their American counterparts in similar jobs, with an average wage gap of about $10,000. The proposal aims to eliminate the incentive for employers to replace American workers with lower-paid foreign labor.
Currently, employers must pay either the prevailing wage or the actual wage paid to American employees, whichever is higher. Critics argue that the prevailing wage has been set too low.
The new rules aim to raise this minimum threshold to better reflect the skills and experience of employees. The proposal will apply to new applications and will not affect existing approvals.
The Labor Department estimates that annual wages per employee could increase by about $14,000, raising labor costs for employers.
Officials state that the goal is to restore fairness in the labor market and prevent foreign workers from undermining American wages.
Public comments will be accepted for 60 days following the publication in the Federal Register on March 27.
The H-1B visa is a key program in the U.S. system for hiring skilled foreign workers, many of whom later transition to permanent residency through other visa categories.
The proposed changes could significantly impact employers and foreign professionals, particularly in the tech sector.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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