H-1B Wage Rule Moves to White House Review

H-1B Wage Rule Under White House Review.

A quiet regulatory development could have a significant impact on H-1B hiring, yet most people aren’t even aware of it. Last week, the Labor Department sent its final prevailing-wage rule to the White House Office of Management and Budget (OMB) for review.

The proposal was first introduced in March, and the public comment period closed on May 26 following considerable concern across the industry. The rule has now moved into its final review stage, bringing it one step closer to possible publication in the Federal Register.

The changes would extend beyond H-1B applications to include H-1B1, E-3, and PERM cases. This means employers could face higher wage requirements not just for new petitions, but also for extensions and employment-based green-card sponsorships.

Once published, the rule could take effect within 30 or 60 days, potentially as early as January. For employers and employees, that could mean a relatively short window to revisit budgets, hiring plans, and ongoing employment arrangements.

A similar shift towards a wage-weighted H-1B lottery was introduced earlier this year, showing how quickly immigration policies can change. With another potentially significant change approaching, both employers and foreign workers would be better off preparing early rather than waiting for the final rule to be published.