DOL Revises H-1B Wage Rule

The Department of Labor (DOL) has revised a rule that will restructure the H-1B, H-1B1, E-3 and PERM prevailing wage system. This rule will create higher minimum wages for these categories, though not as high as originally planned before the initial rule got enjoined by a Federal Court. Wage levels span from lowest at Level 1 to highest at Level 4. New Level 1 wages, for entry level positions, will not be equivalent or higher to the current Level 2 wages. The rule is to take effect 60 days after publication, but the wage increases will not take place until July 31, 2021 and will have a multi-year phase in period. Special adjustments will be made over the next several years for H-1B workers who, as of October 8, 2020, were the beneficiaries of an I-140 petition or eligible for a post-sixth year H-1B extension.

In conjunction with the DHS rule published regarding H-1B lottery priority for higher wage employees, the government is making it clear that foreign workers with higher salaries are the priority in obtaining visas and green cards through employment. The Biden administration will be reviewing all rules published within the 60 days before inauguration and the rule could be placed on hold. The rule may also be challenged in Federal Court. Any updates will be posted.