US Visa Crackdown: Proposed H-1B, PERM Wage Reform Could Send Job Costs Soaring - Experts Warn

A major shake-up in US visa policies is underway, with the Department of Labor proposing dramatic changes to the H-1B and PERM employment programs. The proposed regulation, titled 'Improving Wage Protections for H-1B and PERM Employment,' aims to strengthen wage protections for US workers by making it more challenging for companies to hire foreign employees. The proposal, which remains shrouded in secrecy, is expected to significantly impact H-1B and PERM costs. This move follows a 2025 directive from the previous administration, which instructed the Department of Labor to rewrite prevailing wage regulations. Immigration experts are warning employers to 'watch closely' as the proposed changes could have far-reaching consequences. The regulation, if approved, would require companies to pay significantly higher salaries to H-1B visa holders, potentially pricing out foreign workers and sending jobs abroad. This is not the first time the Department of Labor has proposed changes to the prevailing wage system. In 2021, the agency proposed a regulation aimed at overhauling the wage structure, but it was eventually discarded by the Biden administration. The proposed changes are expected to affect various industries, including technology, healthcare, and employer-sponsored immigration. Experts predict that the regulation, if approved, would lead to significant job losses and a surge in job outsourcing. According to immigration attorney Emily Neumann, 'positions that previously offered around $120,000 would suddenly necessitate approximately $230,000 to $240,000 to remain compliant.' The proposed changes have sparked concerns among industry leaders, who are bracing for the potential impact on their businesses. The fate of the proposed regulation is uncertain, but immigration experts are urging employers to prepare for the worst. As the regulation process unfolds, one thing is clear: the proposed changes could have a profound impact on the US job market and the future of foreign workers in the country.