Fri. Jun 21st, 2024

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Higher wage rule could price out immigrant workers in the US if implemented: NFAP

2 min read

Higher Wage Rule: If US President Joe Biden implements the Trump era guideline requiring higher than market wages for H-1B visas and employment-based green card holders. It would make it hard for many, including international students, to discover employment in the nation. According to a study by the non-partisan policy research organization National Foundation for American Policy (NFAP).

The rule had been issued in January, yet the execution has been postponed to allow the new government to review it. The higher wage rule, which calls for 23-41% higher salaries than paid under the current system. Is being viewed as an approach to price immigrants out of the labor market. This was done after a US court struck down an earlier version of the rule. As being unlawful on the grounds that it violated the Administrative Procedure Act.

The arguments set forward in the Department of Labor’s last rule make sense. Only if one understands the objective of the Trump government’s immigration policy. Also, it was to admit as few foreign-born people as possible to the United States. Said NFAP executive director Stuart Anderson.

Higher wage rule will price out immigrant workers

If the new rule is executed, it would increase pay rates for computer science teachers. Which are basically professors at universities and community colleges, by 41% at entry levels. That could make it hard or impossible for many educational institutions to employ an H-1B visa holder. Or employment-based immigrant to teach computer science to US students,” said Anderson.

While the rule favoring H-1B petitions with higher salaries was supposed to be executed in time for the FY2022 selection next month. It has now been delayed to December.

[Spouses of H-1B visa holders will get work permits]

The current system builds up prevailing wage rates for various areas and roles depending on which the H-1B wage levels are assessed. For example, in the New York-Newark metro area, computer systems analysts earn $69,050 at Level 1 salaries. As per a private wage survey (Willis Towers Watson), which is within 2% of the salary in that area and occupation under the current DOL wage system.

The DOL last rule would raise the minimum required salary for computer systems analysts at Level 1 in New York-Newark to $92,517. About $23,400 or 34% higher than the private wage survey. Also, software developers in the Atlanta metro region would need to be paid 33% higher than current levels.

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