The U.S. Department of Labor’s Employment and Training Administration announced on March 26 a proposed rule aimed at revising the prevailing wage methodology for H-1B, PERM, H-1B1, and E-3 visa programs.
According to the department, the proposed rule is designed to protect wages and job opportunities for American workers by eliminating employers’ ability to pay substandard wages to foreign workers in certain visa programs. The updated methodology would use percentile thresholds from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics survey to align wages paid to foreign workers with those paid to similarly employed American workers.
"The Trump Administration is committed to ensuring that American workers are not disadvantaged by unfair wage practices," said U.S. Secretary of Labor Lori Chavez-DeRemer. "This proposed rule will help ensure that employers pay foreign workers wages that reflect the real market value of their labor, in addition to protecting the wages and job opportunities of American workers. The continued abuse of the H-1B program by certain bad actors will no longer be tolerated," according to Chavez-DeRemer.
Under current law, employers seeking temporary foreign workers through these visa programs must pay either the prevailing wage or the actual wage rate paid to similarly qualified U.S. workers in the area of intended employment, whichever is higher. For permanent positions through labor certification, employers must offer at least the prevailing wage for that job opportunity in the local area.
By implementing these changes, the Department seeks to improve parity between foreign worker and American worker wages, reduce incentives for underpayment, and promote fair competition in the labor market. Comments on this proposed rule are due 60 days after its publication in the March 27 edition of the Federal Register.
In related efforts supporting workforce equity, on August 24, 2022, the Department of Labor announced $3.4 million Women in Apprenticeship and Nontraditional Occupations grants administered by its Women’s Bureau and Employment and Training Administration. Phoenix, Arizona was awarded $542,358 through Fresh Start Women’s Foundation as part of this initiative. Additional information about technical assistance materials related to this proposal can be found as listed on the official roster page.
