The US Department of Labor has proposed raising the minimum pay used to hire workers on H‑1B and related visas by roughly 20–33%, a change the administration says is meant to stop foreign hires from undercutting US workers’ salaries.
Under the March 27 proposed rule, “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States,” prevailing wage rates for four experience levels would be increased from levels set about two decades ago. The department says the current methodology allows employers to pay foreign nationals substantially less than similarly employed US workers.
Current national prevailing wages and the proposed new annual amounts are:
– Level I (entry): from $73,279 to $97,746 (about 33.4% increase)
– Level II: from $98,987 to $123,212 (about 24.5% increase)
– Level III: from $121,979 to $147,333 (about 20.8% increase)
– Level IV (most experienced): from $144,202 to $175,464 (about 21.7% increase)
Prevailing wages vary across metropolitan areas, and the proposed rule would raise the wage floors used in H‑1B, H‑1B1, E‑3 and PERM labor certification programs nationwide.
The proposal is open for public comment through May 26; once the comment period closes the Department of Labor will review feedback before issuing a final rule. Reactions so far are mixed. Supporters say the change will better protect US workers and reduce wage suppression. Critics, including some smaller employers, warn that substantially higher wage requirements could make it difficult to hire entry‑level or junior talent and could raise costs for companies that rely on early‑career hires.
The Biden administration’s move follows earlier actions on H‑1B policy. In 2020 the prior administration attempted to revise prevailing wage calculations but faced legal challenges that halted the effort. In September 2025 a presidential order set a $100,000 fee for certain H‑1B candidates applying from abroad and directed the Secretary of Labor to begin rulemaking to update prevailing wage levels—steps that helped spur the current proposal.
If finalized, the rule would significantly raise wage thresholds employers must meet when sponsoring foreign nationals under these programs, with potential effects on hiring practices, labor costs and employer demand for foreign technical talent.
