United States Moves Closer to Stricter H-1B Visa Program Wage Rules After Federal Review Clearance
The United States has taken a significant step toward revising wage regulations for foreign workers after a proposed rule affecting the H-1B visa and employment-based green card processes cleared federal review, a move that could increase minimum salary requirements for sponsored employees.
The proposal, submitted to the Office of Management and Budget (OMB) two months ago, has completed its review stage and is expected to be published soon for public comment before final approval. The revised regulation is likely to alter how prevailing wages are calculated, potentially raising salary benchmarks across multiple occupations.
Changes Could Increase Hiring Costs
Prevailing wage rules determine the minimum salaries employers must pay foreign workers based on job role and geographic location. Any increase in wage thresholds would directly affect hiring costs, eligibility requirements, and employer sponsorship decisions.
Immigration experts expect the updated framework to tighten wage norms, which could make it more expensive for companies to hire foreign professionals under the H-1B visa programme.
Policy Builds on Earlier Attempts
During the administration of Donald Trump, the US Department of Labor introduced a rule in October 2020 that raised wage requirements for H-1B workers and employment-based green card applicants by 40% to 100%. However, the rule was later challenged in court and withdrawn.
The subsequent administration of Joe Biden had considered introducing revised wage regulations, but the effort was delayed before the current proposal advanced through federal review.
Major Impact on Indian Professionals
The proposed changes are expected to significantly affect Indian nationals, who represent the largest group of H-1B visa holders. According to data from the US Citizenship and Immigration Services (USCIS), Indians accounted for approximately 71% of all approved H-1B applications, including extensions, in fiscal year 2024 — totaling around 280,000 beneficiaries.
Indian professionals form a substantial portion of the US workforce in sectors such as technology and healthcare, making any wage revisions particularly impactful for both employees and sponsoring companies.
Public Comment and Implementation Timeline
The proposed rule will undergo a public comment period of 30 to 60 days before finalisation, though experts believe authorities may limit the period to 30 days to accelerate implementation.
If approved, the revised wage framework could apply to H-1B visa applicants selected in the 2027 cap season. Registrations for the upcoming H-1B visa cycle are scheduled to open next month.
The development signals potential tightening of US immigration wage policies and may influence hiring strategies for companies relying on foreign talent, particularly in high-demand industries.
