Proposed Rule Lifts H-1B Minimum Pay by Up to 33%
The Trump administration's Labor Department proposed a new rule on Thursday that would compel employers to pay significantly higher wages to foreign professionals on H-1B and other high-skilled visas. The proposal, published on March 27, mandates a minimum pay increase between 21% and 33%, depending on the worker's experience level. The administration's stated objective is to protect American jobs and discourage companies from hiring foreign nationals at salaries below prevailing market rates.
Tech Firms Face $14,000 Average Annual Cost Increase Per Worker
The rule directly impacts major technology companies like Amazon.com Inc., Microsoft Corp., Meta Platforms Inc., and Google, which are consistently among the top employers of H-1B talent. According to the Labor Department's analysis, the changes would raise the average certified wage by approximately $14,000 per worker annually. The new structure fundamentally alters how prevailing wages are calculated, lifting the entry-level (Wage Level I) salary floor from the 17th percentile of an occupation's wage data to the 34th percentile. This shift makes sponsoring junior or early-career foreign workers substantially more expensive and could force firms to alter their hiring strategies.
Wage Hike Follows New $100,000 H-1B Visa Fee
This proposed wage increase is the latest in a series of measures designed to overhaul the H-1B program. It follows a September decision to impose a new $100,000 fee for each new H-1B visa application, a dramatic increase from the prior system where application fees were around $5,000. Additionally, the administration recently changed the annual H-1B lottery to a weighted system that favors applicants with the highest salary offers. Together, these policies create a significant financial disincentive for companies to hire foreign talent, particularly for non-senior positions. The proposal is open for a 60-day public comment period.
