The US Department of Labor (DOL) has submitted a proposed rule to the Office of Management and Budget (OMB) that could reshape wage standards for H‑1B nonimmigrant visas and PERM labor certification programs. The move aims to update the methodology for determining prevailing wages, potentially imposing higher wage minimums for employers sponsoring foreign workers.
Proposal sent to OMB for Review
The Department of Labor’s Employment and Training Administration (ETA) sent the proposed rule, titled "Improving Wage Protections for H-1B and PERM Employment in the United States" to the OMB for federal review.
The details of the rule remain confidential until publication in the Federal Register, at which point the public will have an opportunity to comment.
Higher wages for H-1B and PERM workers expected
The proposed rule is anticipated to raise prevailing wages for H-1B and PERM program workers.
Trump-era policy revival
The proposed regulation follows a 2025 proclamation by US President Donald Trump directing the DOL to rewrite prevailing wage rules, a move that had previously caused major disruption before being rescinded.
Immigration attorney Emily Neumann commented on X (formerly Twitter): “The move follows Trump’s 2025 proclamation directing DOL to rewrite prevailing wage regulations. Details aren’t public yet, but this could significantly impact H-1B and PERM costs. Employers should be watching closely.”
Potential industry impact
James Blunt, founder of 4X, highlighted the broad implications of the rule for employers and foreign workers: “This would have a massive impact on the H-1B program and PERM employment. By sharply raising prevailing wages, it would effectively price out H-1B workers, especially at initial filing and during extensions. It will touch everybody in the process. If this survives rulemaking, the disruption across tech, healthcare, staffing, and employer-sponsored immigration will be so severe. It’s almost guaranteed to move more employment overseas.”
Blunt also noted the precedent from the previous Trump administration: “During Trump 1.0, DOL changed the prevailing wage calculation methodology almost overnight. ALL required wages effectively doubled. For example, positions paying ~$120k suddenly required ~$230–240k to remain compliant, including for extensions and transfers, not just new filings. The chaos forced the rule to be walked back quickly.”
He added: “The wages that were proposed were doubled in Trump 1.0 and then rolled back because it caused a lot of chaos. It was not a modest increase. It was DOUBLE.”
