International

US Advances Tougher H-1B Wage Norms

The United States government has taken a key step toward implementing stricter wage standards for skilled foreign workers on H-1B visas, after a proposal to raise minimum pay levels cleared a federal review process. The move aims to adjust pay norms for employers hiring H-1B visa holders.

US H-1B Wage Norms Proposal Advances Federal Review

The proposed rule to update H-1B wage norms has completed its interagency review under the federal regulatory process, bringing the changes closer to formal implementation. The rule would adjust how prevailing wage levels are calculated for H-1B workers, potentially raising minimum required wages for many categories of skilled foreign employees.

Officials said the revisions are intended to align H-1B wages more closely with actual market compensation and reduce incentives for employers to hire foreign workers at lower pay rates than comparable US workers. The next step involves publication of the proposal in the Federal Register for public comment.

Impact Of Tougher H-1B Wage Rules

If finalised, the updated wage norms could affect employers across sectors that rely on H-1B visas, including technology, engineering and healthcare. Higher wage thresholds would raise the cost of hiring H-1B workers, prompting companies to adjust recruitment strategies or training plans for domestic staff.

The proposed wage levels would vary by job category and geographic region, reflecting differences in local labour markets and skill requirements. Employers would need to demonstrate compliance with the revised wage schedule when filing H-1B petitions.

Timeline And Next Steps For H-1B Rule

The proposal’s clearance of federal review does not guarantee immediate adoption; it begins a formal rule-making period. Once published, stakeholders will have an opportunity to submit comments and suggest modifications. After the comment period ends, regulators will consider feedback before issuing a final rule.

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