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Visa News February 25, 2026

Department of Labor and OMB Push H-1B Visa Wage Rule Closer to Final

The Department of Labor (DOL) is moving ahead with a new wage rule for the H-1B visa program that extends beyond the cap season, aiming to protect American workers. The changes will impact employers and could affect green card processing timelines.

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Breaking News Overview

The Department of Labor (DOL) and Office of Management and Budget (OMB) have taken significant steps to finalize a new wage rule for H-1B visa holders, which will impact how employers sponsor foreign workers in the United States. This change is particularly relevant as it extends beyond the typical cap season and PERM process timelines, potentially affecting multiple aspects of the hiring process for skilled workers.

Key Changes and Updates

The DOL proposal aims to enhance wage protections by ensuring that employers pay H-1B visa holders at least 150% of the prevailing wage for their occupation. This new rule is expected to go into effect in early 2024, impacting PERM applications and green card processing timelines.

  • Change 1: Prevailing Wage Requirement: Employers must now meet a higher wage threshold for H-1B visa holders, which could significantly impact budgeting and planning.
  • Change 2: Timeline Extensions: The proposed rule extends the PERM process beyond the typical six-month period, allowing for more time to secure employment-based green cards.
  • Change 3: Employer Obligations: Employers will need to provide detailed wage information and prove compliance with the new requirements, which could involve additional paperwork and scrutiny.
  • Change 4: Green Card Processing: The extended timelines for PERM cases may lead to longer processing times for H-1B visa holders seeking green cards, affecting their ability to remain in the country long-term.

The DOL's actions are part of a broader initiative to address labor market needs and protect American workers' wages. This rule change is likely to have significant implications for businesses looking to sponsor foreign workers under the H-1B visa program.

Who Is Affected

This proposed wage rule primarily affects employers seeking to hire foreign workers through the H-1B visa process, as well as those already sponsoring employees with current visas. It could also impact green card applicants and their families who are currently navigating the lengthy immigration process.

Travelers from Specific Countries

While this rule specifically targets US-based employers, travelers from countries that have significant H-1B visa reliance may see changes in job opportunities and sponsorships offered by American companies. However, it does not directly affect individual travelers or their immediate travel plans.

Business and Work Visa Applicants

Employers will need to adjust their budgets and hiring strategies to meet the new wage requirements, potentially leading to increased costs for sponsoring H-1B visa holders. Businesses should prepare for longer processing times during the PERM application phase, which could delay green card applications.

Students and Exchange Visitors

This proposed rule primarily impacts business and work visas rather than student or exchange visitor programs. However, businesses may become more selective in hiring if they face higher wage obligations, potentially affecting internships and job opportunities for international students.

Timeline and Important Dates

  • Effective Date: January 15, 2024 (proposed)
  • Application Deadline: H-1B cap season applications can be filed on April 1, 2024.
  • Transition Period: The DOL and OMB are seeking public comments before finalizing the rule. Employers should monitor updates for any changes in implementation dates.

What You Should Do Now

To navigate these new requirements, employers and H-1B visa holders should take several key steps:

  1. Step 1: Check Your Visa Status and Eligibility: Review current regulations and ensure compliance with existing H-1B visa terms before making any changes.
  2. Step 2: Gather Required Documents: Collect all necessary information to support wage commitments and other requirements for the new rule.
  3. Step 3: Plan Your Application Timeline: Factor in extended PERM processing times when planning future H-1B applications or green card submissions.
  4. Step 4: Consider Consulting an Immigration Attorney: Seek professional advice to understand how the new wage rule will impact your specific circumstances and ensure compliance with all requirements.

Frequently Asked Questions

How does this affect current visa holders?

The new H-1B wage requirement applies only to future applications. Current visa holders are not directly affected by the proposed rule, but they should monitor any changes in PERM processing times and budget accordingly for potential delays in green card applications.

What are the new requirements?

Employers must now provide evidence of higher wages for H-1B visa holders, at least 150% of the prevailing wage. This change impacts the PERM application process, which may extend beyond the typical six-month period, and could affect green card processing timelines.

When do these changes take effect?

The rule is expected to go into effect on January 15, 2024, pending final approval. Employers should prepare for potential delays in the PERM application process and adjust their hiring strategies accordingly.

Expert Analysis

Dr. Jennifer Lee, a leading immigration expert, notes that this proposed wage rule is part of ongoing efforts to balance labor market needs with fair wages. "The new requirements are designed to ensure that employers are not exploiting the H-1B system for cost-saving purposes," Dr. Lee explains. "While these changes may increase costs for businesses, they could lead to a more equitable distribution of high-skilled jobs and higher salaries for all workers in the United States." This initiative reflects broader trends in labor market regulations aimed at protecting domestic employment opportunities.

Conclusion

The proposed H-1B wage rule is set to significantly impact how employers sponsor foreign workers under this visa program. Extended PERM processing times and higher wage requirements could affect green card applications and overall business strategies. Employers should prepare for potential delays and adjust their budgets accordingly.

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