US employers can no longer use visa programs to pay foreign workers below market rate
What happened
The U.S. Labor Department wants to change how it calculates the minimum wage for foreign workers on temporary or permanent visas. This means employers might have to pay these workers more, bringing their wages closer to what U.S. workers in similar jobs earn.
Why it matters
This rule change aims to make sure companies hire foreign workers to fill gaps, not to get cheaper labor. By recalculating wage floors based on current job market data, the government wants to prevent employers from undercutting American workers. This could increase labor costs for industries that rely on foreign talent, potentially affecting hiring decisions and the availability of certain jobs.
The signal
Tech companies and consulting firms that rely heavily on H-1B workers — and built hiring models around the gap between prevailing wages and actual market wages — now face a recalculation. Expect lobbying during the comment period, legal challenges after a final rule, and quiet internal audits of labor condition applications. Watch for the comment period to draw a flood of responses from the tech and staffing industries. If the rule finalizes, companies will either raise wages or reduce visa filings — both outcomes reshape the H-1B market within 12-18 months.
The Department of Labor has proposed that companies pay foreign visa workers what US workers in the same job actually earn. Companies are preparing comments explaining why this is complicated.