There is concern about the potential effects of the U.S. Department of Labor’s (DOL) proposed wage rule on various work visa programs.
The DOL is proposing changes to how wages for foreign workers are determined in the U.S., with the goal of raising minimum wages across job levels and regions. This effort is intended to ensure that foreign workers receive compensation comparable to that of American citizens performing the same job in the same location. If the new rule is implemented, it could lead to an average annual wage increase of approximately $14,000 per worker.
Some U.S. immigration specialists say that the DOL’s proposed wage rule may pose challenges for foreign workers seeking U.S. residency.
“[It] is another bullet fired by the Trump administration at the H-1B pathway to lawful permanent residency for high-skilled foreign workers,” said Matt Gordon of E3 Legal Advisors PLLC. “This is policy at its worst. It hurts U.S. employers by driving up costs and disincentivizing high-talent, high-wage-earning (tax-paying) workers from continuing to build our economy.”
Potential impact on visa programs
This update affects programs like the H-1B visa and PERM labor certifications for EB-2 and EB-3 green cards, making it more expensive for employers to hire foreign workers. The proposal is available for public comment until May 26.
“For students or those on Optional Practical Training (OPT), particularly those from India and China, the assault on the H-1B pathway makes it all the harder to realize a life in the U.S.,” Gordon added.
The recent DOL wage proposal contributes to the ongoing discussions and changes surrounding the H-1B program, affecting its cost and attractiveness.
“These actions will likely make this category of visas less attractive to employers,” Anthony Korda of the Korda Law Firm stated. “While increased wage protections for foreign workers are to be welcomed, these proposals may ultimately result in jobs being relocated outside the U.S., rather than encouraging domestic employment of U.S. citizens. This would lead to a net loss for the U.S. economy.”
How the EB-5 visa program could benefit
The EB-5 program could benefit from this shift in interest away from H-1B and other employment-based visa categories.
Robert Divine of Baker Donelson noted that “every incremental effort the U.S. government makes to increase the difficulty of obtaining H visas increases the attractiveness of the EB-5 path to permanent residence.”
However, the opportunity to gain permanent residency through this pathway is diminishing as the grandfathering deadline nears, a pending increase in the investment minimum is set for January, and the possibility of retrogression looms.
DISCLAIMER: The views expressed in this article are solely the views of the author and do not necessarily represent the views of the publisher, its employees. or its affiliates. The information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.
