NRI PULSE STAFF REPORT
Washington DC, March 28, 2026: The U.S. Department of Labor has announced a proposed rule that could significantly change how wages are set for foreign workers in programs such as H-1B visas and employment-based green cards.
In simple terms, the government wants to make sure that companies pay foreign workers wages that are closer to what American workers earn for the same jobs. Officials say this is meant to prevent companies from hiring cheaper foreign labor instead of U.S. workers.
The proposal focuses on how “prevailing wages” are calculated. These wages act as a minimum salary that employers must offer when hiring foreign workers. Right now, critics say those wage levels are often set too low compared to the actual market rate.
Under the new rule, wages would be based more closely on real salary data collected by the government, specifically from national employment surveys. This would likely raise the minimum pay levels for many positions, especially in fields like technology, engineering, and other specialized jobs.
Labor Secretary Lori Chavez-DeRemer said the goal is to ensure fairness. “This proposed rule will help ensure that employers pay foreign workers wages that reflect the real market value of their labor,” she said, adding that it would also protect job opportunities for American workers.
Currently, employers hiring through programs like H-1B must pay either the prevailing wage or the actual wage paid to similar U.S. workers—whichever is higher. However, the government argues that the way prevailing wages are calculated has allowed some employers to legally offer salaries that are still below true market levels.
Officials say this has, in some cases, encouraged companies to replace American workers with lower-paid foreign workers. The proposed changes aim to remove that incentive by raising wage standards.
If implemented, the new rule would apply to several visa categories, including H-1B, H-1B1, E-3, and the permanent labor certification (PERM) program used for green cards.
The rule is still in the proposal stage. The public, including employers and workers, has 60 days to submit comments after it is published in the Federal Register. The department will review feedback before making a final decision.
