A newly proposed rule from the U.S. Department of Labor (DOL) could significantly reshape the cost and strategy of hiring foreign talent through the H-1B and PERM programs.
The proposal, aimed at increasing wage protections for U.S. workers, is expected to drive up salary requirements—adding what some are calling “sticker shock” for employers.
What the Proposed Rule Does
The DOL’s proposal focuses on revising how prevailing wages are calculated across H-1B, H-1B1, E-3, and PERM programs. Instead of relying on lower wage percentiles, the rule would shift wage levels upward to better reflect actual market compensation.
Under the current system, wages are divided into four levels based on experience. The proposal would significantly raise each level—for example, entry-level wages would move from the 17th percentile to the 34th percentile, with similar increases across all tiers.
The DOL’s stated goal is to ensure foreign workers are paid comparably to similarly situated U.S. workers and to eliminate incentives for employers to hire lower-cost foreign labor.
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