The United States Department of Labor has published new prevailing wage requirements that govern how much employers must pay workers hired through employment-based visa programmes, including the widely used H-1B category. The rules are grounded in the Immigration and Nationality Act (INA), which prohibits the hiring of foreign nationals from adversely affecting the wages or working conditions of comparably employed American workers. Employers must offer at least the prevailing wage for the relevant occupation in the location where the work will be carried out.
The prevailing wage is defined as the average pay workers in a given occupation receive in the intended area of employment. Employers can determine the correct rate through one of two routes: submitting a formal request to the National Prevailing Wage Center (NPWC) or consulting the OFLC Wage Search tool available through the Department of Labor's online portal. The obligation applies across most employment-based visa categories administered by the Department of Labor, including PERM, H-2B, H-1B, H-1B1, E-3 and CW-1.
Employers sponsoring workers under the H-1B, H-1B1 and E-3 programmes face a stricter standard than those operating under other visa categories. For these programmes, the employer must pay whichever figure is higher: the prevailing wage for the occupation and area, or the actual wage already being paid to workers with comparable skills and qualifications at the same establishment. This two-tier calculation aims to prevent companies from using foreign labour to bring down internal pay scales.
The Department of Labor makes all relevant wage data publicly accessible through its foreign labour wages page, which outlines programme requirements and provides guidance on using the available tools. This information is particularly relevant for foreign nationals in the United States on H-1B visas, especially those from countries such as Nigeria navigating employment-based immigration pathways.
Understanding prevailing wage protections helps workers evaluate job offers against legal minimums and identify what they are entitled to receive from a sponsoring employer. The new rules are designed to protect American workers from being undercut by foreign labour. The Department of Labor's online portal and NPWC provide resources for employers to determine the correct prevailing wage rates.
The US Department of Labor's announcement is a significant development in the regulation of employment-based visa programmes. The new prevailing wage requirements will take effect in 2026 and apply to all employers hiring foreign nationals under the H-1B visa programme. Employers must ensure compliance with the new rules to avoid potential penalties.
In a related development, the US has updated its visa bond list to include 50 countries. Citizens of these countries are required to pay a financial bond of up to $20,000 before travelling to the US. The list was last revised on 2 October 2026. The new rules and regulations aim to ensure that foreign nationals are paid fairly and that American workers are protected.
Key points
- The US Department of Labor has set new prevailing wage requirements for employers hiring foreign nationals under the H-1B visa programme.
- Employers must pay the higher of the prevailing wage or the actual wage paid to comparable American workers.
- The new rules aim to protect American workers from being undercut by foreign labour.
