US moves closer to tougher H-1B wage norms as proposal clears federal review

The US has moved a step closer to revising wage rules for foreign workers after a proposed regulation affecting the H-1B visa and employment-based green card process cleared federal review – a development that could eventually push up minimum wage requirements for sponsored workers.The proposal was submitted to the Office of Management and Budget (OMB) for review two months ago, and the rule is likely to be published shortly for public comment before finalisation.Prevailing wages determine the minimum salary US employers must pay foreign employees based on occupation and location. Any change to this framework directly affects hiring costs, eligibility thresholds and sponsorship decisions. While the detailed regulatory text has not yet been released publicly, immigration experts expect the proposal to modify how wage levels are calculated and potentially increase required salary benchmarks across multiple occupations.During Donald Trump’s earlier tenure as president, the department of labour introduced a rule in Oct 2020 that significantly hiked wages for H-1B workers and employment-based green card applicants by 40% to 100%.The final rule was successfully challenged in court, and was later withdrawn. While the Biden administration had sought to issue a fresh set of wage rules, the plan was eventually put on the backburner.The move is significant for Indian professionals, who account for the overwhelming majority of H-1B visa holders and form a large share of employment-based green card applicants in the US, particularly in the technology and healthcare sectors.According to a report issued by the USCIS of the total H-1B applications (including extensions) approved in fiscal 2024, 71%, or about 2.8 lakh, were for Indian beneficiaries. While the public comment window for any proposed rule is open for 30 to 60 days, immigration experts believe the comment period may be restricted to 30 days to expedite finalisation of the wage rule. The revised framework could apply to H-1B beneficiaries selected in the 2027 season. Registrations for the H-1B cap visa are scheduled to open next month. TOI has reported earlier that sponsoring employers are not gung-ho about the H-1B cap season, and the wage rules could be the final dent in the coffin.