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Labor Department Proposes Sharp Increase to H‑1B and PERM Prevailing Wages

The proposal opens a 60‑day comment window before a likely court fight over how to align visa wages with U.S. pay.

Overview

  • Labor officials published an NPRM on Friday proposing higher minimum pay rates for H‑1B, H‑1B1, E‑3, and PERM jobs that use government wage data to set salary floors.
  • Under the plan, the four wage tiers would shift up to new percentiles: Level I to the 34th, Level II to the 52nd, Level III to the 70th, and Level IV to the 88th.
  • The department estimates the change would raise the average certified wage by about $14,000 per job, with the rule applying only going forward to new LCAs and to new or pending prevailing‑wage requests.
  • A 60‑day public comment period is now open, and the draft keeps the option for employers to use approved alternative wage surveys if they meet regulatory standards.
  • Legal challenges are expected because a similar 2021 increase was struck down, and experts say the higher floors could reduce entry‑level opportunities and steer hiring toward higher‑paid roles and experienced workers.