A fresh proposal from the US Department of Labor (DOL) has reignited concerns across corporate America and the global talent community, as policymakers move to significantly tighten wage rules governing H-1B visas and PERM-based employment. Immigration experts warn that if implemented, the changes could dramatically increase hiring costs, disrupt employer-sponsored immigration, and potentially push more jobs outside the United States.
The proposal, formally titled “Improving Wage Protections for H-1B and PERM Employment,” has been submitted to the Office of Management and Budget for review. While the full details have not yet been made public, the intent is clear: raise prevailing wage requirements to ensure foreign workers are not hired at pay levels deemed to undercut U.S. workers.
A Push to Prioritize Domestic Labor
According to officials familiar with the proposal, the revised rules aim to strengthen wage protections by increasing minimum salary thresholds for foreign workers. Supporters argue this would discourage companies from relying on lower-paid overseas talent and instead incentivize hiring within the domestic workforce.
Although the exact wage figures remain confidential, immigration attorneys say the proposal closely mirrors a sweeping rule introduced during the previous Trump administration. That earlier effort sought to overhaul the prevailing wage system by sharply increasing required pay levels across multiple visa categories.
“This move follows President Donald Trump’s 2025 proclamation directing the Department of Labor to rewrite prevailing wage regulations,” said immigration attorney Emily Neumann in a post on X. “Details aren’t public yet, but this could significantly impact H-1B and PERM costs. Employers should be watching closely.”
Lessons From the 2021 Wage Rule
Industry anxiety is rooted in precedent. In 2021, the DOL finalized a rule that dramatically restructured how prevailing wages were calculated for foreign workers under visa programs including H-1B, H-1B1, E-3, and permanent labor certifications. The rule revised the four-tier wage structure derived from Occupational Employment Statistics (OES) data collected by the Bureau of Labor Statistics.
The goal at the time was to better align wages paid to foreign workers with those earned by similarly employed U.S. workers. However, critics argued that the changes were too abrupt and economically disruptive. Legal challenges quickly followed, and the regulation was ultimately withdrawn under the Biden administration after multiple delays and industry pushback.
That history is now fueling fears that a similar outcome could unfold again—only this time with even higher wage floors.
Potential Impact on Employers and Workers
Early estimates from immigration analysts suggest the new proposal could have far-reaching consequences. In a post on X, immigration policy commentator James Blunt warned that the rule could effectively price many employers out of the H-1B and PERM system altogether.
“This would significantly affect the H-1B program and PERM employment,” Blunt said. “It would essentially exclude H-1B workers by drastically raising prevailing salaries, especially for initial filings, extensions, and transfers.”
According to industry examples cited by experts, roles that previously met compliance at salaries around $120,000 could suddenly require wages in the range of $230,000 to $240,000. Such increases would apply not only to new applications but also to renewals and job changes, creating uncertainty for both employers and existing visa holders.
Risk of Jobs Moving Offshore
Technology, healthcare, engineering, and other sectors that rely heavily on high-skilled foreign talent are expected to feel the greatest impact. Employers argue that sharply increased wage mandates may not result in more domestic hiring, but rather accelerate offshoring.
“If companies cannot hire globally within the U.S. at sustainable costs, the work will simply move abroad,” Blunt cautioned. “That’s exactly what happened when similar rules were proposed in the past.”
A Waiting Game for Now
For the moment, the proposal remains under review, and formal rulemaking could still take months. However, immigration attorneys advise employers and foreign workers alike to prepare for potential changes.
“This is not something that should be ignored,” Neumann noted. “If finalized, it could reshape the economics of employment-based immigration in the U.S. for years to come.”
As policymakers weigh worker protections against business realities, one thing is certain: the future of H-1B and PERM employment is entering a period of renewed uncertainty—and stakeholders are watching closely.
