The US Department of Labor has proposed a new rule that will increase the costs associated with hiring H-1B visa holders and sponsoring employment-based immigrants by elevating the required prevailing wage.
The proposed rule raises the minimum required salaries by 21% to 33%, contingent on a worker’s level of experience, and includes a 60-day comment period.
Experts say the rule aims to align prevailing wage levels with the wages paid to US workers who are similarly employed in the occupation and area of intended employment.
The proposed changes may lead to higher hiring expenses and prompt companies to adopt a more selective approach, potentially reducing available opportunities for entry-level foreign workers.
Indian nationals, who constitute the majority of H-1B visa recipients, may see increased salaries for skilled professionals, especially those with prior experience, but may face challenges for recent graduates and entry-level candidates in obtaining positions.
