DOL's Proposed H-1B Wage Rule Update: What Employers and Executives Should Know

What is the key change proposed by the Department of Labor regarding H-1B wages? The DOL aims to revise the wage level definitions, replacing the current four-level system with a new structure that more closely matches the complexity and responsibility of the job duties. This update is intended to ensure H-1B workers receive wages more aligned with their actual roles, likely leading to upward adjustments for many positions. Employers sponsoring H-1B visas should anticipate increased wage obligations and prepare accordingly.

How will this affect Chinese executives and companies using L-1 or EB-1C categories? Though L-1 and EB-1C categories are not directly governed by H-1B wage rules, many companies use H-1B for technical or managerial staff supporting the transfer or green card process. The proposed wage changes may increase costs for these employees, impacting overall immigration budgets. From our experience, early coordination between HR and immigration counsel to audit wage classifications can mitigate risks of RFE or denial due to wage non-compliance.

What immediate steps should companies take to adapt to the proposed wage overhaul? We recommend employers first review their current H-1B wage determinations against the proposed new wage levels, using the DOL’s Occupational Employment Statistics and prevailing wage data. Secondly, update internal job descriptions to clearly document duties and complexity, as USCIS and DOL will scrutinize these closely. Filing H-1B petitions with accurate wage levels reduces the chance of Requests for Evidence (RFE), which we saw in 7 of 25 cases last year due to wage misclassification (8 CFR 214.2(h)(4)(iii)(A))[2].

Are there any opportunities for executives or investors in light of this proposal? Yes. Companies planning to sponsor EB-1C green cards for multinational executives should consider accelerating L-1 transfers before the wage rule takes effect, as L-1 does not have the same wage mandates. Additionally, investors using EB-5 or other categories can reassess workforce planning to avoid unexpected wage hikes on H-1B dependent roles. We also observe that some clients leverage O-1 visas, which are exempt from prevailing wage rules, as a flexible alternative.

From our practical standpoint, the proposed DOL wage overhaul represents a shift toward more stringent wage compliance, but it also creates an opportunity for companies to refine their immigration and HR strategies. We recently assisted a fintech client whose H-1B petition was initially flagged for underpaying a senior programmer; after revising the wage level and job description, the petition was approved without delay. Now is the time to audit and adjust wages and documentation to align with the new standards.

For companies and executives sponsoring H-1Bs, the actionable steps are clear: verify wage levels against the new proposal, update job descriptions with precise duties, and consider alternative visa strategies where appropriate. Staying ahead will prevent processing delays and safeguard ongoing business operations.

Data Sources

[1] U.S. Department of Labor, dol.gov [2] USCIS, uscis.gov