The US Department of Labor has proposed a major rule that could increase salaries for foreign workers in the country.
This change targets visa programs like H-1B visa, H-1B1, E-3, and PERM.
If approved, companies may have to pay significantly higher minimum salaries, also known as the “prevailing wage.”
What Is Changing in the New Rule
Right now, companies follow an older system to decide salaries for foreign workers.
The government says this system often sets wages too low.
The new proposal aims to fix this by linking salaries more closely to real market data from the Bureau of Labor Statistics.
In simple terms, foreign workers would be paid closer to what American workers earn for similar roles and experience.
Entry-Level Jobs May Be Hit the Most
One of the biggest changes affects entry-level salaries.
Currently, beginner-level wages are set at the 17th percentile.
The proposal plans to raise this to the 34th percentile, which is a big jump.
This means freshers could now cost companies as much as more experienced workers do today.
As a result:
Hiring fresh foreign graduates may become expensive
Companies may prefer experienced professionals
Some employers may choose local workers instead
This could make it harder for new applicants to enter the US job market.
Why the Government Wants This Change
Officials say the current system has allowed some companies to hire foreign workers at lower salaries.
This has raised concerns that:
American workers are being underpaid or replaced
Foreign workers are not getting fair wages
The new rule aims to create a fair system where everyone is paid based on real market value.
How the Current System Works
At present, employers must pay whichever is higher:
The prevailing wage for the job
The salary paid to similar US workers
For permanent jobs, companies must at least meet the prevailing wage requirement.
With the new proposal, the government wants to raise this baseline so wages better reflect actual market rates.
Government’s Clear Message
US Labor Secretary Lori Chavez-DeRemer said the goal is to protect both American and foreign workers.
She emphasized that unfair wage practices and misuse of visa programs will not be tolerated going forward.
What Happens Next
The rule is still in the proposal stage. It will be officially published on March 27, 2026, after which the public will have 60 days to share feedback.
Only after reviewing these comments will the government decide whether to implement the final rule.
What This Means for You
If approved, this rule could reshape hiring in the US:
Higher salaries for foreign workers
Tougher chances for freshers
More focus on experienced professionals
For job seekers, especially new graduates, this could make competition even tougher in the coming years.
