New Rule Altering the H-1B Process and Prevailing Wage Levels
On October 8, 2020, the Department of Labor Employment and Training Administration released an interim final rule which alters the computation of prevailing wage levels for H-1B workers and other employment-based workers.[i]
The primary purposes of the new rule is to update the existing wage levels that have been in place for over twenty (20) years in order to “better reflect the actual wages earned by U.S. workers similarly employed to foreign workers.”[ii]
According to the Department of Labor:
… the prevailing wage levels the Department sets in the H-1B, H-1B1, E-3, and PERM programs are meant to protect against the adverse effects the entry of immigrant and nonimmigrant workers can have on U.S. workers, they do not accomplish that goal – and have not for some time.[iii]
The previous wage levels were as follows:
Level I (entry level) – 17 percentile
Level II (experience) – 34 percentile
Level III (qualified) – 50 percentile
Level IV (fully competent) – 67 percentile[iv]
The new prevailing wage levels have been adjusted as follows:
Level I (entry level) – 45 percentile
Level II (experience) – 62 percentile
Level III (qualified) – 78 percentile
Level IV (fully competent) – 95 percentile[v]
The Department of Labor raised the prevailing wage levels to more accurately reflect what U.S. workers with levels of education, experience, and responsibility comparable to H-B workers are paid.[vi]
The Department of Labor believes these adjustments will promote wage protection for U.S. workers and bring an end to the widespread use of H-1B workers as a low-cost alternative to U.S. workers.[vii]
If you have questions about the new prevailing wage levels and/or filing an H-1B petition, contact Lally Immigration Services, LLC at (617) 870-1000 or email immigration attorney, Dayna Lally, directly at [email protected].
[i] See: https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/DOL-Interim-Final-Rule-Strengthening-Wage-Protections-for-the-Temporary-and-Permanent-Employment-of-Certain-Aliens-in-the-United-States.pdf.
[ii] Id.
[iii] Id.
[iv] Id.
[v] Id.
[vi] Id.
[vii] Id.
