3 days ago
US proposes 30% H-1B wage increase amid mixed responses
The US wants companies to pay higher minimum salaries to some foreign workers.
These workers are hired through programs such as H-1B.
The proposed increase is about 30% overall.
For entry-level workers, the suggested wage is $97,746.
Officials say the old wage rules were set 20 years ago.
They believe the new rules would better protect US workers from lower-paid competition.
Some people support the plan because they say it would make pay fairer.
Other people worry that small companies could no longer afford to hire beginners.
The public can send comments before May 26, after which the Department of Labor will decide on a final rule.
The US has proposed raising minimum wages for H-1B workers by about 30% over existing limits.
Entry-level prevailing wages would rise to $97,746, a 33.39% increase under the proposal.
The Department of Labor says current methods can allow foreign workers to be paid less than similarly employed US nationals.
The changes would affect H-1B, H-1B1, E-3, and PERM labor certification programs.
Public comments are open until May 26, with support from some groups and opposition from smaller companies.
- Who
- The US administration and Department of Labor proposed changes affecting employers and foreign workers in several visa and labor-certification programs.
- What
- A proposal would raise prevailing wage requirements by about 30%, including a 33.39% increase for entry-level workers.
- Where
- The proposal applies across the United States, with prevailing wages varying by city.
- When
- Public comments are open until May 26; the final rule will be considered afterward.
- Why
- The administration says existing wage levels may allow foreign workers to be paid less than similarly employed US nationals and were set 20 years ago.
Supporters
Critics
Protecting US workers
Supporters
Supporters agree with the administration that higher wage requirements could prevent foreign workers from undercutting the salaries of US nationals.
Critics
Critics argue the higher requirements could make it harder for employers to hire workers for entry-level positions.
Impact on smaller companies
Supporters
Supporters say the current methodology does not adequately protect US workers because it can permit substantially lower pay for foreign workers.
Critics
Opponents contend that smaller companies may no longer be able to afford freshers for entry-level jobs under the proposed wage levels.
Key facts
- Overall proposed increase
- About 30% over previously fixed wage limits
- Entry-level proposed wage
- $97,746
- Entry-level increase
- 33.39% over the old rate
- Affected programs
- H-1B, H-1B1, E-3, and PERM labor certification programs
- Comment deadline
- May 26
- Wage variation
- Prevailing wages differ by city
- Next step
- The Department of Labor will review comments before notifying a final rule
Sources
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