Federal Judge Nixes DOL H-1B Wage Rule

July 09, 2021

A federal judge vacated a DOL rule that would have significantly amended wage obligations for H-1B workers and made it more difficult to hire early-career workers on H-1B visas. 

Under the rule, employers would have been required to pay 23-41% higher wages to workers on H-1B visas, according to a National Foundation for American Policy report

Following the judge’s order, DOL clarified that the operative version of the regulations (in place prior to the rule) will continue to apply.  In order to alter the regulations, the Department would be required to begin a new rulemaking process. 

Outlook:  The decision to vacate the DOL rule puts the issue of prevailing wages for H-1B workers to rest—for now.  Meanwhile, the business community has filed lawsuits against a DHS rule on the H-1B selection process that would have a negative impact on hiring early-career H-1B workers similar to the vacated DOL rule.  The DHS rule is set to take effect on December 31, 2021.