The US government has begun reviewing proposed changes to wage rules that apply to H-1B visa holders and employment-based green card applicants. The proposal, put forward by the US Department of Labor, is currently under review by the Office of Management and Budget (OMB). If approved, it could lead to higher minimum wage requirements for foreign workers and employers sponsoring them.
This review marks an important early step in the federal rulemaking process.
The Department of Labor has proposed changes to how prevailing wages are calculated for the H-1B visa programme and the PERM labour certification process. Prevailing wages set the minimum salary that employers must offer when hiring foreign workers or sponsoring them for permanent residence.
Although the full details of the proposal are not yet public, any upward revision in wage calculations would increase the cost for employers using these routes and raise salary thresholds for affected workers.
The H-1B programme allows US companies to hire foreign professionals in specialised roles, while the PERM process is a mandatory step before applying for an employment-based green card. Wage rules under both systems are designed to ensure that hiring foreign workers does not undercut US wages.
Changes to these rules could significantly affect job offers, hiring plans, and green card sponsorship timelines, especially in sectors that rely heavily on international talent.
In 2021, the Department of Labor introduced a rule to revise the four-level prevailing wage system, which would have raised minimum wages across all levels. That rule faced legal challenges and was later withdrawn following a change in administration.
A separate proposal was considered in later years but removed from the regulatory agenda. It remains unclear whether the current proposal follows the same structure as earlier efforts or introduces a new approach.
Once the OMB completes its review, the draft rule will be published in the Federal Register, allowing the public to submit comments. Only after completing this consultation process and receiving final approval will the rule come into force.
Until then, existing wage rules will continue to apply.
Read more: US Visa Appointments for Indian H-1B Workers Face 1-Year Delay Due to Stricter Screening.
The review of wage rules for H-1B visas and green card applicants could lead to higher minimum salaries and reshape how employers plan international hiring. While the proposal is still in its early stages, workers and employers should closely track developments. Any final change will only take effect after full regulatory approval and public consultation.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Dec 22, 2025, 5:40 PM IST
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