WASHINGTON, D.C. — A proposed federal rule could require employers to pay foreign workers wages more closely aligned with U.S. workers, a change aimed at reducing incentives to hire lower-cost labor through visa programs.
What This Means for You
- Employers may need to pay foreign workers higher, market-aligned wages
- The rule could reduce incentives to replace U.S. workers with lower-paid visa holders
- Public comments are open for 60 days following Federal Register publication
The U.S. Department of Labor’s Employment and Training Administration released the proposal to update how “prevailing wages”—the standard pay rate for a specific job in a specific location—are calculated for several employment-based visa programs.
How Wages Would Be Calculated
The proposed rule would adjust prevailing wage calculations using data from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics survey.
Rather than relying on lower benchmark levels, the updated system would use higher statistical wage percentiles to better reflect actual market pay for similar jobs.
Officials said the goal is to align wages paid to foreign workers with those earned by similarly qualified American workers.
Programs Affected
The changes would apply to multiple visa programs, including H-1B, H-1B1, and E-3 visas, which allow employers to hire foreign workers in specialty occupations, as well as the permanent labor certification process used for long-term employment.
Under current law, employers must pay foreign workers at least the higher of the prevailing wage or the wage paid to comparable U.S. workers. The prevailing wage effectively serves as a minimum salary requirement tied to job type and location.
Concerns Driving the Proposal
Federal officials said existing wage levels have often been set below market rates, particularly for entry-level positions, which can create incentives for employers to hire foreign workers at lower pay.
“This proposed rule will help ensure that employers pay foreign workers wages that reflect the real market value of their labor,” said Labor Secretary Lori Chavez-DeRemer.
The department said the changes are intended to reduce potential misuse of visa programs and promote more equal competition in the labor market.
Next Steps
The proposed rule is open for public comment for 60 days following its publication in the Federal Register on Thursday.
Additional details and technical materials are available at https://www.dol.gov/agencies/eta/foreign-labor.
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