Labor Department Proposes Visa Wage Rule Changes

Proposal targets prevailing wage standards

A photo of the U.S. Dept. of Labor building in Washington, D.C. — Image courtesy of the U.S. Department of Labor

The U.S. Department of Labor’s Employment and Training Administration has issued a proposed rule to revise how prevailing wages are calculated for several employment-based visa programs.

The proposal would update wage methodology for the permanent labor certification, H-1B, H-1B1 and E-3 programs, using percentile thresholds based on federal wage data to better align pay for foreign workers with that of similarly employed U.S. workers.

Under current law, employers must pay foreign workers the higher of the prevailing wage or the actual wage paid to comparable U.S. employees. The prevailing wage also serves as a minimum requirement in the permanent labor certification program.

The Labor Department said the changes are intended to reduce incentives to hire lower-paid foreign labor and improve wage parity across the workforce.

“ This proposed rule will help ensure that employers pay foreign workers wages that reflect the real market value of their labor,” said Labor Secretary Lori Chavez-DeRemer.

Comments on the proposal are due 60 days after its publication in the Federal Register on March 27, 2026.