Understanding H-1B Wage Requirements

H-1B wage requirements protect American workers and H-1B employees. Employers must pay the higher of two wage standards. First, the actual wage paid to similarly situated workers in the same occupation. Second, the prevailing wage for that occupation in the geographic area.

H-1B prevailing wage 2025 rates come from Department of Labor data. DOL maintains wage libraries showing market rates for thousands of occupations across different locations. These reflect what companies typically pay for specific positions in specific areas.

H-1B salary requirements vary dramatically by occupation, experience level, and location. A software engineer in San Francisco commands different wages than one in Austin. Entry-level positions pay less than senior roles. USCIS scrutinizes whether offered wages meet requirements.

Employers cannot underpay H-1B workers. The system prevents companies from using foreign labor to suppress wages. If your company pays American software developers $120,000, you cannot offer H-1B workers $80,000 for the same role.

H-1B wage compliance starts before filing petitions. Employers must determine prevailing wages before submitting Labor Condition Applications. Getting wages wrong triggers RFEs, denials, or investigations.

Beyond Border helps employers navigate complex wage requirements ensuring LCA compliance and proper wage determination from the start.

Four Wage Levels Explained

H-1B wage level rules establish four tiers reflecting worker experience and responsibility. Department of Labor assigns levels based on position requirements and worker qualifications.

Level 1 represents entry-level positions. Workers have basic understanding performing routine tasks under close supervision. This is the lowest wage tier. Expect DOL prevailing wages at approximately the 17th percentile of market rates for the occupation.

Level 2 covers qualified workers with moderate understanding. They perform moderately complex tasks with limited judgment. Level 2 wages sit around the 34th percentile. This suits workers with relevant education and limited experience.

Level 3 applies to experienced workers demonstrating sound understanding. They perform complex tasks requiring considerable judgment and initiative. Level 3 wages reach approximately the 50th percentile, representing truly average market rates.

Level 4 designates fully competent workers providing expert performance. They handle unusually complex tasks requiring extensive judgment. Level 4 wages hit the 67th percentile. These positions demand substantial specialized experience.

H-1B wage determination must match actual job requirements. You cannot classify a senior architect position as Level 1 to reduce wage obligations. USCIS reviews job descriptions verifying level appropriateness.

Mismatched wage levels trigger problems. If your job description demands 5 years experience but you claim Level 1 wages, expect RFEs questioning the inconsistency. Level selection must align with position complexity.

Beyond Border analyzes job descriptions determining appropriate wage levels that satisfy DOL requirements while reflecting genuine position characteristics.

Determining Prevailing Wages

H-1B prevailing wage 2025 determination involves several methods. Most common is using DOL's Foreign Labor Certification Data Center wage library. This free online database provides wages by occupation, location, and experience level.

Employers access the wage library at flcdatacenter.com. Select the appropriate Standard Occupational Classification code matching your position. Choose the geographic area, typically Metropolitan Statistical Area or rural designation. The system displays four wage levels.

Alternative H-1B wage determination methods include independent authoritative surveys. Private wage surveys from recognized organizations can establish prevailing wages if they meet DOL criteria including scope, methodology, and currency.

The actual wage consideration requires internal analysis. Review what you pay current employees in similar positions. If you have American workers doing identical jobs, H-1B workers must receive equal compensation. You cannot create two-tier wage systems.

For new positions without comparable workers, focus on prevailing wage requirements. The H-1B employer wage obligations center on meeting DOL prevailing wage minimums even when no internal comparison exists.

Timing matters. Prevailing wage determinations must be current when filing LCAs. Wages change annually. Don't use outdated determinations from previous years. Always verify current rates before filing.

Beyond Border conducts thorough prevailing wage determinations using approved methodologies and documenting rationales comprehensively.

LCA Wage Compliance

H-1B wage requirements appear on Form ETA-9035 Labor Condition Applications. Employers specify the wage rate, wage period (hourly, weekly, annual), and whether paying actual or prevailing wage. This becomes a binding commitment.

LCA submission to DOL occurs before USCIS petition filing. Once DOL certifies your LCA, you must honor stated wage rates. The certification confirms your wage meets prevailing wage requirements for that occupation and location.

H-1B salary requirements take effect when H-1B workers begin employment. You must pay the specified wage from day one. If your LCA states $100,000 annually, workers must receive at least $100,000 starting immediately.

Benching is prohibited. You cannot fail to pay H-1B workers when they're available for work. If business slows and you have no projects, you still owe full wages. This differs from independent contractors who only get paid for actual work.

H-1B wage compliance continues throughout the validity period. If you filed an LCA for three years at $100,000, you must maintain that wage the entire three years. Cutting wages requires LCA amendments and USCIS approval.

Public access files must be maintained. USCIS and DOL can audit your wage payments. Keep documentation proving you paid specified wages including pay stubs, tax records, and accounting ledgers.

Beyond Border guides employers through LCA preparation ensuring wage commitments are realistic, compliant, and properly documented.

Recent Wage Rule Changes

H-1B wage level rules faced proposed major overhauls in previous years. DOL attempted dramatically raising Level 1 wages from 17th percentile to 45th percentile. Courts struck down these changes, restoring previous percentile-based systems.

The September 2025 Presidential Proclamation implementing the $100,000 H-1B fee doesn't directly change wage requirements. However, it increases overall H-1B program costs substantially. Some employers may struggle justifying $100,000 fees plus market-rate wages.

H-1B prevailing wage 2025 determinations remain based on percentile calculations within occupational categories. The four-level structure persists despite past reform attempts.

H-1B employer wage obligations expanded through stricter enforcement. DOL investigations of wage violations increased. Penalties for underpaying H-1B workers include back wages, fines, and program debarment.

January 2025 final rules streamlined certain H-1B processes but maintained wage requirement structures. The modernization focused on flexibility and retention rather than wage determination methodologies.

Location-based wage variations remain critical. As remote work increases, H-1B wage determination for work-from-home arrangements requires careful analysis. Where is the work performed? That location determines prevailing wage rates.

Beyond Border monitors regulatory changes affecting H-1B wage requirements and advises clients on compliance with current rules.‍

Frequently Asked Questions

What are H-1B prevailing wage requirements? H-1B prevailing wage is the average wage paid to similarly employed workers in the geographic area, determined by DOL wage data or approved surveys and required to protect against wage depression.

How are H-1B wage levels determined? H-1B wage levels (1-4) are based on position complexity and required experience, with Level 1 at 17th percentile for entry positions through Level 4 at 67th percentile for fully competent workers.

Can employers pay H-1B workers less than Americans? No, employers must pay H-1B workers the higher of actual wage paid to similar American workers or prevailing wage for that occupation and location.

When must H-1B wages be paid? H-1B wage requirements take effect on employment start date and must be maintained throughout visa validity, with no benching or unpaid periods when workers are available.

What happens if employers violate H-1B wage rules? H-1B wage violations result in back wage payments, civil penalties, DOL investigations, and potential debarment from H-1B and other labor certification programs.