A third-party analysis found the Department of Labor’s (DOL’s) H-1B visa wage increase is likely illegal. According to the Cato Institute, the wage increase wasn’t based on legitimate wage surveys. The organization basically accused the DOL of inventing evidence to drive policy.
The DOL claims H 1B workers get paid “below market” wages and that its rule fixes this problem. However, the proposed rule only inflates wages. The DOL’s argument runs like this: H-1B workers are paid below market, and the rule fixes that gap. The trouble is that the gap doesn’t exist. What the rule does is push wages above market rates, choke off the supply of skilled foreign workers past what Congress authorized, and make it harder for employers to keep people they’ve already hired. The proposed changes would price out H-1B workers from their own jobs and, eventually, out of the country. These are objectively among the highest-paid workers in the United States.
According to the Cato Institute’s studies, there’s no empirical basis for raising the prevailing wage. Hundreds of thousands of H-1B workers already living in the U.S. risk loosing their footing, and that matters because these workers grow more valuable the longer they stay. Experience compounds. On top of that, non-citizens in H-1B occupations tend to out-earn U.S.-born workers in the same field with the same number of years in the country.
In short, the DOL’s proposed rule rests on a market failure that doesn’t exist. The department’s own data shows H-1B workers earn more than their American-born counterparts. The market is doing what it should, and there’s no shortage to correct by inflating the floor.
As always, ILBSG actively monitors ongoing U.S. immigration news. If you have questions about any U.S. immigration related issue, contact us. Working with an experienced attorney ensures you get the right advice based on the most recent laws. In an ever-evolving immigration policy landscape, it’s particularly critical you get the right advice.