According to Forbes, the U.S. Department of Labor (DOL) is preparing to launch a new wage reform plan that could fundamentally change the salary standards for H-1B visas and employment-based immigration (PERM). It is reported that if this rule takes effect, the entry-level salary for certain positions could reach $208,000 per year.
Industry insiders describe this reform as "more terrifying than an additional $100,000," as it may render employers unable to bear the labor costs of high-skilled foreign employees.
After the "High Salary Lottery"
Stricter Wage Policies Are Coming
As early as the end of September this year, the U.S. Department of Homeland Security (DHS) announced a new "H-1B Lottery Reform" plan—weighted lottery based on salary levels, where higher salaries increase the chances of selection.
This time, the Department of Labor aims to take further action—not to change the lottery mechanism, but to directly raise the minimum standards for the four wage levels (Level 1–4).
In other words: "Not only will high-salary applicants have a better chance of selection, but low-salary positions may even be directly excluded from the application threshold."
This will undoubtedly deal a heavy blow to newly graduated international students, junior engineers, and small to medium-sized enterprises with limited budgets.
Level 4 Salaries May Be Fully Adjusted
Reports suggest that the new regulations may reference the version from the Trump administration in 2021. That year's plan raised the "percentiles" of the four wage levels from the original 17%, 34%, 50%, 67% to 35%, 53%, 72%, 90%.
This means that companies must pay H-1B employees salaries that are at least 35% to 90% higher than the average salary of their peers in the same industry in the same region to gain approval.
According to the new regulations, in tech cities like Silicon Valley and San Francisco, employers will need to pay software developers approximately $208,000 per year, regardless of skill level.
Currently, the U.S. Department of Labor has not officially released specific wage reform documents, but industry experts generally believe that the release date is approaching. Some analysts point out that the recent reopening of the LCA and PERM systems by the Department of Labor may be paving the way for wage reform. We will continue to monitor this situation and share updates as they become available.
EB-5 New Law:
A More Stable and Direct Pathway to Stay in the U.S.
For international students and young professionals hoping to stay in the U.S. long-term through H-1B, this wage system reform may become a critical turning point in the H-1B ecosystem. Frequent adjustments to H-1B policies have made it increasingly difficult to rely solely on work visas for staying in the U.S. Against this backdrop, EB-5 investment immigration, with its stable, direct, and controllable advantages, is becoming a reliable choice for more families planning long-term stays in the U.S.
The EB-5 investment immigration program has been in place since it was legislated by the U.S. Congress in 1990, and it has a history of over 30 years, with stable policies, especially after the implementation of the new law: rural EB-5 projects are exempt from waiting periods and have priority approval advantages; the "dual submission" policy allows applicants to submit both I-526E and I-485 simultaneously in the U.S., enabling them to obtain a Combo Card in about three months, quickly achieving legal residency and employment eligibility.
In an era of increasing uncertainty surrounding H-1B, the new EB-5 law undoubtedly becomes an ideal solution for high-net-worth families and international students to achieve long-term stays in the U.S.
Currently, it is a critical time for planning U.S. identity through EB-5. We hold three high-quality EB-5 rural projects, assisting investors in obtaining U.S. green cards without waiting periods and quickly, opening up a more relaxed and beautiful new life for families. Global quotas are limited, and it is first-come, first-served; opportunities should not be missed!
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