A new rule has been proposed to improve wage protections for H-1B and PERM employment in the United States. The Department of Labor sent a new proposal to the Office of Management and Budget titled Improving Wage Protections for H-1B and PERM Employment.
By making it more difficult for US firms to hire foreign workers, proposed pay hikes for H-1B visa holders are intended to give preference to American workers.
The details of Wage Protections for H-1B are not public, but a similar proposal was put forth during Trump’s earlier regime.
In 2021, the Trump Administration’s DOL finalized a regulation to restructure the prevailing wage system, raising minimum wage requirements. This rule was contested in court and ultimately abandoned by the Biden-era DOL, which initially intended to propose its own rule but later deprioritized and removed the initiative from its regulatory agenda after several delays.
Emily Neumann, Immigration Attorney, on X writes, “The move follows Trump’s 2025 proclamation directing DOL to rewrite prevailing wage regulations. Details aren’t public yet, but this could significantly impact H-1B and PERM costs. Employers should be watching closely.”
2021 Proposal
In 2021, the Department of Labor (DOL) proposed to update how it calculates prevailing wages for foreign workers entering the U.S. through specific visa programs, including H-1B, H-1B1, E-3, and permanent labor certifications.
The proposals specifically targeted the Labor Condition Applications (LCAs) and permanent labor certifications. The DOL proposed to adjust the computation of its four-tiered wage structure. These levels are based on the Occupational Employment Statistics (OES) survey from the Bureau of Labor Statistics.
The primary objective is to ensure the wage levels more accurately reflect what similarly employed U.S. workers actually earn. By raising or refining these wage requirements, the DOL aims to prevent the employment of foreign workers from depressing the wages or reducing the job opportunities available to the domestic workforce.
Impact of the Proposal
James Blunt, with X handle, JBlunt1018, wrote, “This would have a massive impact on the H-1B program and PERM employment. By sharply raising prevailing wages, it would effectively price out H-1B workers, especially at initial filing and during extensions. So it will touch everybody in the process.
If this survives rulemaking, the disruption across tech, healthcare, staffing, and employer-sponsored immigration will be so severe. It’s almost guaranteed to move more employment overseas.”
Blunt continued, “We don’t know the exact mechanics yet, but there is precedent for this being disruptive. During Trump 1.0, DOL changed the prevailing wage calculation methodology almost overnight. All required wages effectively doubled.
For example, positions paying ~$120k suddenly required ~$230–240k to remain compliant, including for extensions and transfers, not just new filings. The chaos forced the rule to be walked back quickly.”