The U.S. Department of Labor has proposed new rules to significantly raise wages for foreign workers under the H-1B and other visa programmes, aiming to bring their pay in line with U.S. market standards.
According to officials, the move is designed to protect American workers and curb misuse of the system. Labour Secretary Lori Chavez-DeRemer stated that the administration is committed to ensuring fair wage practices so that domestic workers are not disadvantaged.
A key change in the proposal involves how “prevailing wages” are calculated—the benchmark that sets the minimum salary employers must offer foreign workers. Under the new plan, entry-level wages would see a sharp increase, moving from roughly the 17th percentile to the 34th percentile. Similarly, the highest wage level would rise from the 67th to the 88th percentile.
Officials argue that the current wage structure is too low, allowing companies to hire foreign workers at cheaper rates compared to U.S. employees. Government data cited in the proposal suggests that H-1B workers earn, on average, about $10,000 less than their American counterparts in similar roles.
By raising the wage floor, the department aims to remove incentives for companies to replace domestic workers with lower-paid foreign labour. The revised structure would better reflect workers’ skills and experience while promoting fair competition in the labour market.
The proposed rules will apply only to new applications and will not impact existing approvals. The department estimates that wages could increase by around $14,000 per worker annually, potentially raising labour costs for employers—especially in sectors like technology that heavily rely on foreign talent.
The proposal will be open for public comments for 60 days following its publication in the Federal Register on March 27. The H-1B visa remains the primary pathway for hiring skilled foreign professionals in the United States, many of whom later transition to permanent residency.
If implemented, these changes could significantly reshape hiring practices and compensation structures for employers while impacting thousands of foreign professionals seeking opportunities in the U.S.
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