For H-1B workers, prevailing wage rules require that employers pay them at least the prevailing wage for their position and location, protecting both U.S. and foreign workers from wage suppression. This regulation ensures H-1B employees receive compensation comparable to local workers in similar roles, supporting fair competition and compliance with U.S. labor standards.
Here’s how the prevailing wage requirement works in more detail:
Determination of the Prevailing Wage: The prevailing wage is generally set by the Department of Labor (DOL) and depends on factors like job type, required experience, qualifications, and the job’s location. Employers can use the DOL's Foreign Labor Certification Data Center’s wage library or an approved private wage survey to determine this rate.
Wage Level Structure: The DOL assigns different wage levels based on job complexity and required experience:
- Level 1: Entry-level positions with limited experience.
- Level 2: Roles requiring some experience and moderate skills.
- Level 3: Advanced positions needing significant experience and specialized skills.
- Level 4: Highly complex roles, often managerial or expert-level positions.
Labor Condition Application (LCA): Before filing an H-1B petition, the employer must submit an LCA to the DOL, stating that the wage for the H-1B worker will meet or exceed the prevailing wage.
Compliance and Audits: Employers must keep documentation to prove compliance with the prevailing wage and may be subject to audits by the DOL to ensure that H-1B workers are compensated properly.
Failure to meet the prevailing wage requirement can lead to penalties, such as fines or debarment from the H-1B program.
