[US] Proposal to increase minimum wages for hiring H1B workers

In the US, a proposal to increase the minimum wages paid to hire an employee under the H1B visa program by 30 per cent over the previously fixed limits is open to public comments until later this month, Outlook Business reports.

The administration claims the move will help prevent foreign workers from undercutting the salaries of US nationals.

The new rule was proposed by the US Department of Labor on March 27. It reportedly seeks to increase the minimum wages for four categories from the entry-level to the most-experienced, stating that the existing wage levels were fixed 20 years ago and fail to adequately protect US workers.

The proposed rule ‘Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States’, says the prevailing wage for entry-level foreign workers was USD 73,279 per annum, USD 98,987 (Level II), USD 121,979 (Level III) and USD 144,202 (Level IV).

The new rule is now open to public comments until May 26. it seeks to increase the prevailing wages for entry-level workers to USD 97,746, a hike of 33.39 per cent over the old rates, USD 123,212 (Level II, 24.47 per cent), USD 147,333 (Level III, 20.79 per cent), and USD 175,464 (Level IV, 21.68 per cent). The prevailing wages differ from city to city.

The Department of Labor said the current methodology allows employers to hire foreigners at wage levels significantly below those paid to similarly employed US.

The proposed changes will significantly raise the prevailing wage levels used in the H1B, H1B1, E-3, and PERM labour certification programs.

They have reportedly received mixed responses, from overwhelming support to opposition, contending that smaller companies may no longer be able to hire freshers for entry-level jobs, due to the higher prevailing wages.

After the window for public comments closes on May 26, the Department of Labor will examine the responses and notify the final rule.

Source: Outlook Business

In the US, a proposal to increase the minimum wages paid to hire an employee under the H1B visa program by 30 per cent over the previously fixed limits is open to public comments until later this month, Outlook Business reports.

The administration claims the move will help prevent foreign workers from undercutting the salaries of US nationals.

The new rule was proposed by the US Department of Labor on March 27. It reportedly seeks to increase the minimum wages for four categories from the entry-level to the most-experienced, stating that the existing wage levels were fixed 20 years ago and fail to adequately protect US workers.

The proposed rule ‘Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States’, says the prevailing wage for entry-level foreign workers was USD 73,279 per annum, USD 98,987 (Level II), USD 121,979 (Level III) and USD 144,202 (Level IV).

The new rule is now open to public comments until May 26. it seeks to increase the prevailing wages for entry-level workers to USD 97,746, a hike of 33.39 per cent over the old rates, USD 123,212 (Level II, 24.47 per cent), USD 147,333 (Level III, 20.79 per cent), and USD 175,464 (Level IV, 21.68 per cent). The prevailing wages differ from city to city.

The Department of Labor said the current methodology allows employers to hire foreigners at wage levels significantly below those paid to similarly employed US.

The proposed changes will significantly raise the prevailing wage levels used in the H1B, H1B1, E-3, and PERM labour certification programs.

They have reportedly received mixed responses, from overwhelming support to opposition, contending that smaller companies may no longer be able to hire freshers for entry-level jobs, due to the higher prevailing wages.

After the window for public comments closes on May 26, the Department of Labor will examine the responses and notify the final rule.

Source: Outlook Business