The U.S. government is currently reviewing a new proposal that could lead to an increase in the minimum wages imposed on employers when hiring foreign workers under the H-1B and PERM visa programs. This official move comes through a review by the U.S. Department of Labor (DOL) of prevailing wage policies. A draft of the decision has been sent to the Office of Management and Budget (OMB) for evaluation of potential economic impacts before its official adoption and implementation in 2026.
These amendments are of utmost importance as they affect the operating costs of thousands of technology, medical, and financial companies in the United States, in addition to their direct impact on the acceptance opportunities for foreign professionals in the U.S. job market. The proposal aims to restructure salaries to ensure that incoming foreign labor does not compete with local workers in terms of wages, which could change the landscape of international recruitment and the financial requirements for obtaining permanent or temporary work authorization.
Leaked details about the proposal indicate that the primary focus is on the “prevailing wage system,” which is the standard that determines the minimum salary a foreign employee must receive based on their job role, geographic location, and experience level. The United States currently uses a four-tier wage structure, and the new decision is expected to raise the required percentage at each level, making the sponsorship of foreign employees more costly, especially for entry-level positions.
This legal review targets several vital programs and visas for international professionals, which we summarize in the following points:
- H-1B Visa: Designated for specialty occupations in information technology, engineering, and healthcare.
- H-1B1 Visa: A specific version for citizens of Chile and Singapore to work in professions requiring advanced technical skills.
- E-3 Visa: Designed exclusively for Australian citizens seeking to work in specific professional and academic fields.
- PERM Labor Certification: The essential step for obtaining a Green Card through an employer.
This direction brings to mind previous attempts to raise wages in 2021, where the plan aimed to increase the wage level for entry-level employees (Level 1) from 17% to 35%, and for highly experienced individuals (Level 4) from 67% to 90%. Although those attempts faced legal challenges and were later withdrawn, the return of the proposal in 2026 indicates the current administration's determination to update wage standards to align with economic inflation and protect competitiveness in the local job market.
For foreign professionals and business owners, the approval of these increases means a necessity to offer stronger salary proposals to ensure eligibility for a work visa. While highly skilled individuals may benefit from higher salaries, startups and small businesses might find it challenging to bear the new financial burdens, potentially reducing the number of available positions for entry-level applicants.
In conclusion, the proposal remains under confidential federal review, and the final figures and precise percentages will not be disclosed until its official publication in the Federal Register. Once published, a public comment period will open to receive feedback from experts and the public before a final decision is made. Stakeholders and applicants are advised to follow official U.S. Department of Labor sources for the final dates of implementation of the new rules, which will shape international employment in the United States for years to come.
Official Source: Federal Register – Improving Wage Protections for Certain Foreign Nationals in the United States