A new rule from the US Department of Labor could soon change how much companies must pay foreign workers on certain visas. The proposal has just cleared an important step in Washington, but the full details are still under wraps. The United States Department of Labor has proposed a rule that would revise wage requirements for two major immigration programs: the H-1B visa and the PERM labor certification process.
This proposal was recently reviewed and cleared by the Office of Management and Budget, often called the OMB. That review is a key step before any federal rule is made public. Now, the next move is publication in the Federal Register, which is where new federal rules are officially announced. Once it is published there, the public will be able to read it and share feedback.
What are prevailing wages — and why they matter?
The proposal could increase “prevailing wages.” These are the minimum salaries that US employers must pay foreign workers. The amount depends on the worker’s job role and the location of the job. If the government changes how these wages are calculated, it directly affects: How much companies must pay, who qualifies under the salary rules and whether employers decide to sponsor foreign workers at all.
The detailed rule has not yet been made public. But immigration experts expect that it may change the way wage levels are calculated and possibly increase salary requirements across several types of jobs. If that happens, hiring foreign professionals could become more expensive for US companies.
Not a law yet
It is important to note that this proposal is not final. Even though it has cleared federal review, it will not take effect unless it goes through a public comment period and completes the remaining stages of rulemaking. After publication, individuals, companies, and advocacy groups will be able to submit comments. Only after reviewing those comments can the department decide whether to move forward and finalise the rule.
This is not the first time wage rules under these programs have been in focus. During the first term of Donald Trump, in 2021, the Labor Department finalised a regulation that would have changed its four-level prevailing wage system. That rule aimed to raise minimum wages across all four wage levels. In some cases, salaries were raised by 40% to 100%.
The 2021 rule faced legal challenges in court. After the change in presidential administration, the Biden-era Labor Department stepped away from it. Under Joe Biden, the department had plans to introduce its own proposed rule on prevailing wages. But after multiple delays, the initiative was first deprioritized and later removed from the agency’s regulatory agenda.
At this point, it is unclear whether the proposal that just cleared review is the same as the rule finalized during the first Trump administration in 2021, or if it is a new version altogether.
Why this matters for Indian professionals
Indian nationals make up the vast majority of H-1B visa holders. They also represent a large share of applicants for employment-based green cards, especially in the technology and healthcare sectors. According to a report by the US Citizenship and Immigration Services, in fiscal year 2024, 71% of all approved H-1B applications, including extensions, went to Indian beneficiaries. That works out to about 2.8 lakh approvals.
Because of these numbers, any change in wage rules will have a strong impact on Indian professionals and the companies that hire them.
What happens next?
When the proposed rule is published, there will be a public comment period. Usually, such windows stay open for 30 to 60 days. However, immigration experts believe the government may keep it open for just 30 days to speed up the process. If the rule is finalised quickly, the revised wage framework could apply to H-1B beneficiaries selected in the 2027 season.