The U.S. Department of Labor has issued a Notice of Proposed Rulemaking (NPRM) that would significantly revise how prevailing wages are calculated for employers sponsoring foreign talent under the PERM labor certification program, as well as key nonimmigrant visa categories including H-1B, H-1B1, and E-3, and employment-based green card pathways such as EB-2 and EB-3.
More closely aligning visa wages with U.S. workers: At the center of the proposal is a recalibration of the existing four-tier wage structure, which relies on federal wage data.
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The Department is proposing methodological changes intended to more closely align required wages with those earned by similarly situated U.S. workers in the same occupation and geographic region.
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In doing so, the Department aims to strengthen program integrity, address concerns about wage undercutting, and reinforce statutory requirements that the employment of foreign workers not adversely affect U.S. workers’ wages or working conditions.
What it means for CHROs: This proposal carries meaningful strategic and operational implications. If finalized, the rule is expected to result in higher prevailing wage determinations across a range of roles, particularly in highly skilled and specialized occupations, thereby increasing total labor costs for employers that rely on global talent pipelines.
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Beyond cost considerations, the proposed changes may introduce added complexity and scrutiny into the wage determination and petition process, requiring more robust documentation, closer alignment between compensation structures and market data, and enhanced compliance oversight.
What’s next: The Department is accepting public comments on the proposal through May 26. The Association will be submitting formal comments and welcomes member input to help inform our response. If you are interested in contributing perspectives, please reach out to the Association’s SVP of Practice, Public Policy and Government Relations, Chatrane Birbal, at Cbirbal@chro.org.
