U.S. Department of Labor has quietly moved to change high-skilled immigration rules

A new proposal for H-1B and PERM wage hikes was sent for review this week. This regulatory action could dramatically raise salary requirements for companies. It aims to prioritize American workers in the labor market. The potential change has employers and foreign workers watching closely.

Biden DOL Wage Rule Proposal Sent for Review

The Department of Labor submitted a proposal to the White House. It is titled “Improving Wage Protections for H-1B and PERM Employment.” The Office of Management and Budget is now reviewing the draft rule.Full details are not yet public. The move follows a 2025 proclamation directing the DOL to rewrite wage regulations. According to Reuters, similar efforts were made under the previous administration.In 2021, the Trump-era DOL finalized a rule to overhaul the prevailing wage system. It sought to increase minimum salary levels for visa holders. That rule faced immediate legal challenges.The Biden administration later discarded the 2021 regulation. It had planned its own version but removed it from the agenda after delays. This new submission revives the contentious policy issue.The core goal is protecting U.S. worker wages. The DOL wants to ensure foreign workers are not used to undercut pay. This is done by adjusting a four-tier wage structure.Tiers are based on Bureau of Labor Statistics surveys. The change would make wages reflect earnings of similar American workers more accurately. The impact on business costs could be significant.

Potential Impact on Tech and Healthcare Industries

Immigration attorneys warn of severe disruption. The proposal could essentially price out many H-1B workers. Salary requirements for some roles could nearly double overnight.Positions currently paying around $120,000 might need $230,000. This applies to new applications and also extensions and transfers. The financial burden on companies would be immense.Industries like technology and healthcare would be hit hardest. These sectors rely heavily on skilled foreign talent. Engineering and medical research roles are particularly affected.Experts say the result could send more jobs abroad. Companies may opt to open offices overseas instead of hiring in the U.S. This would counteract the rule’s aim of protecting domestic employment.The PERM process for green cards would also see higher costs. This lengthens the path to permanent residency for skilled workers. The overall effect could reshape competitive hiring.Employers are advised to monitor the regulatory process closely. The OMB review is the first step before a public comment period. Final rules could take many months to implement.

Legal and Political Context

The wage rule is a perennial feature of immigration debates. It balances protecting workers with meeting economic needs. The outcome of this proposal remains uncertain.Previous attempts have been struck down in court. Any final rule will likely face immediate legal challenges from industry groups. The political environment adds another layer of complexity.

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The proposed Biden DOL wage rule marks a pivotal shift in high-skilled immigration policy. Its progression will be a major story for businesses and workers alike. The coming months will determine the future cost of hiring foreign talent in America.

Disclaimer: This article is for informational purposes based on available regulatory announcements. It does not constitute legal or immigration advice. Readers should consult qualified professionals for guidance on specific cases.

References: Information was synthesized from reporting by Reuters and official U.S. Department of Labor regulatory documents and announcements.