The Trump administration is expected to make significant changes to the H-1B visa program, particularly concerning prevailing wage requirements. Employers hiring international talent should prepare for possible policy changes similar to those seen during Trump’s first term.
Prevailing Wage Reform: Background and Future Implications
The H-1B visa allows U.S. businesses to temporarily hire foreign workers in specialty occupations, helping fill critical roles in technology, healthcare, finance, and other sectors. A key part of the H-1B process is the prevailing wage requirement, which ensures employers pay foreign workers at least the higher of the prevailing wage or the actual wages paid to similar U.S. employees. This rule is designed to prevent wage suppression and protect the domestic workforce.
During his first term, President Trump significantly increased prevailing wage thresholds through a Department of Labor (DOL) rule, aiming to align foreign worker salaries more closely with market wages for U.S. workers. Although these 2020 reforms were halted by legal challenges and later withdrawn by the Biden administration, Trump will likely reinstate similar measures.
Data Examples Illustrating Potential Wage Impacts (National Averages):
| Roles | Previous Level I Wage | Proposed Level I Under Trump | Percentage Change |
| Software Developers | $85,000 | $130,000 | 53% Increase |
| Computer Research Scientists | $85,000 | $122,000 | 43% Increase |
| Petroleum Engineers | $87,000 | $174,000 | 100% Increase |
Likelihood of New Prevailing Wage Reforms
Given Trump’s historical emphasis on protecting American jobs and wages, businesses should anticipate renewed attempts to substantially increase prevailing wages. Trump’s previous proposal raised entry-level (Level I) wages dramatically, shifting the minimum salary to nearly the median wage level for certain occupations. For example, the salary for an entry-level mechanical engineer would see a 30% increase from $65,000 per year to $85,000. With conservative policy organizations providing detailed proposals — including a wage-based allocation of H-1B visas — employers can reasonably expect renewed emphasis on prioritizing higher-paying positions.
Potential for Wage-Based Selection Process
A move towards a wage-based selection process could represent another significant action the Trump administration might pursue. During his first term, a key focus was on increasing the required prevailing wage levels, a measure aimed at ensuring foreign workers were compensated at a comparable rate with their American counterparts and to potentially discourage the hiring of foreign workers for lower-paying roles. Implementing a wage-based selection process could be viewed as a further step in this direction, potentially acting as another mechanism to prioritize higher-skilled and higher-paid foreign workers seeking entry through the H-1B program.
Potential Impacts on H-1B Visa Allocation
Reinstatement of higher prevailing wages and possible implementation of a wage-based selection process for H-1B visas would shift visa allocation toward higher-wage, higher-skilled roles. Companies aiming to hire early-career or entry-level international talent could face significant financial barriers. Conversely, senior or specialized roles could become increasingly competitive, emphasizing experience, advanced skills, and higher compensation packages.
Sector-Specific implications
Industries heavily dependent on entry-level talent, such as technology startups, might encounter considerable challenges, potentially needing to rethink hiring strategies or pivot towards alternative visa pathways (e.g., L-1 or O-1 visas). Sectors with larger salary ranges could see increased concentration of visas at senior levels, affecting organizational structures and career progression strategies for international employees.
Key Considerations for Employers
- Conduct internal salary audits to understand current wage structures versus potential increased prevailing wages.
- Assess roles most critical for international hiring, prioritizing higher-wage positions likely favored by new policies.
- Explore alternative immigration pathways and consider expanded domestic recruitment and training.
- Allocate additional resources toward compliance and regulatory readiness, anticipating heightened scrutiny and enforcement.
Broader Implications and Proactive Steps
Increased prevailing wage requirements could affect U.S. business competitiveness, particularly in innovation-driven industries reliant on international talent. Companies should actively engage in advocacy efforts by:
- Directly communicating with policymakers and submitting formal comments
- Actively participating in industry associations’ lobbying initiatives
- Raising public awareness through publications and sharing data
Encouraging employee involvement in contacting elected officials to emphasize the economic benefits of balanced immigration policies.
Looking Ahead
The Trump administration is expected to push for significant H-1B prevailing wage reforms, prioritizing higher-paying roles and potentially reshaping immigration policy for skilled workers. Employers should stay informed, adjust hiring strategies, and remain flexible to minimize disruptions to their talent pipeline.