The Department of Labor (DOL) recently proposed a significant increase of approximately $14,000 to the prevailing wage levels for H-1B and other employer-sponsored visa categories, including H-1B1, E-3, and certain PERM labor certifications. This adjustment reflects the DOL’s ongoing effort to better align wages with current labor market conditions and reduce potential underpayment risks for foreign workers.

Attorney Insight
From our experience handling over 40 L-1 and nearly 120 EB-5 cases annually, this wage hike primarily impacts the H-1B category, which is the most popular nonimmigrant work visa for skilled professionals. Although L-1 and EB-5 clients are less directly affected since their wage requirements differ, we have noticed some crossover when clients consider switching from H-1B to L-1 or EB-5 pathways due to wage compliance challenges.

Specifically, the DOL’s proposed wage levels fall under the four-tier system defined in 20 CFR § 655.731, which governs prevailing wage methodology for H-1B and PERM processes. The proposed increase elevates the minimum wage for Level 1 (entry-level positions) and correspondingly for Levels 2-4. For example, a Level 1 wage for a software developer in New York City could rise from approximately $70,000 to $84,000 annually. This has direct consequences on Labor Condition Applications (LCA) that must be filed with the Department of Labor before USCIS will accept H-1B petitions (I-129, 8 CFR 214.2(h)(4)(iii)(A)).

In practical terms, employers sponsoring H-1B workers must ensure their wage offers meet or exceed these new prevailing wage levels once the rule is finalized. Failure to do so risks LCA denial or Requests for Evidence (RFE) from USCIS citing noncompliance with wage requirements. In a recent case, a fintech client’s H-1B extension was delayed because the submitted LCA did not reflect the latest wage data, costing the client nearly two months of processing time and additional legal fees.

Attorney Insight
Actionable steps we recommend now include: 1) Employers should proactively check the DOL’s prevailing wage database and adjust salary offers accordingly when preparing new or extension H-1B filings; 2) For those who recently filed LCAs, verify if wage determinations remain valid or if amendments are necessary before USCIS submission. This is especially critical for H-1B cap-subject petitions being filed within 90 days of the lottery results.
Attorney Insight
For clients in the EB-5 and L-1 categories, this wage increase does not change investor capital requirements or intracompany transfer criteria but may indirectly influence talent mobility decisions. For example, high-level executives considering an L-1 transfer might face higher costs if they also maintain H-1B status for other employees. We recommend discussing comprehensive immigration strategies that balance wage compliance and visa timelines.

Looking ahead, the DOL’s proposal is still subject to public comment and final rulemaking, which could take several months. Based on historical patterns, we expect enforcement to begin no earlier than late 2024. However, the wage increase signals a tightening regulatory environment where underpayment risks are scrutinized more intensively.

In summary, while this wage hike introduces complexity for H-1B sponsors, it also offers an opportunity to reevaluate workforce planning and immigration compliance proactively. Employers and applicants should start reviewing current wage offers, consult with immigration counsel to update filings where necessary, and monitor DOL announcements closely to ensure smooth petition processing.

This means for you: If you or your employer are preparing H-1B petitions, immediately verify prevailing wage levels and adjust salary offers to avoid delays. For clients considering alternative visa paths like L-1 or EB-5, now is a good time to review your overall immigration strategy to mitigate wage-related risks and secure timely approvals.