By Republican lawmakers have introduced legislation that would raise a key salary threshold under the H-1B visa programme to nearly $140,000 a year. The Protecting American Workers Through H-1B Modernization Act, sponsored by Representative Glenn Grothman of Wisconsin and Senator Jon Husted of Ohio, targets a threshold that has remained unchanged since 1998, according to ETHRWorld.
The proposal, published on October 19, 2026, would not create a minimum salary for all H-1B visa holders. Instead, it would change the salary-based exemption from additional hiring safeguards that apply to employers classified as H-1B-dependent. The current exemption threshold is $60,000 a year. The bill would link the new threshold to twice the Social Security Administration’s National Average Wage Index, meaning it could adjust as average wages change. The proposal remains at an early stage and has not become law.
What the $140,000 figure actually changes
The distinction between a minimum salary and an exemption threshold matters for HR teams. Under current rules, H-1B-dependent employers, generally those with a high proportion of H-1B workers relative to their overall workforce, must attest that they have recruited US workers before hiring certain foreign professionals and have not displaced qualified American employees in specified circumstances.
Some H-1B workers are exempt from these additional requirements if they earn at least $60,000 a year or hold a master’s degree or higher qualification. The proposed legislation would change only the salary-based exemption, not the education-based one. An H-1B worker with a master’s degree would remain exempt regardless of salary, based on the facts available.
Grothman said the existing threshold had not kept pace with wages. Husted argued that companies heavily reliant on H-1B workers should not be able to use an outdated threshold to bypass protections for qualified American workers.
How this differs from the DOL prevailing wage rule
Readers searching for H-1B salary changes may confuse this legislative proposal with a separate regulatory effort. In March 2026, the Department of Labor published a notice of proposed rulemaking to revise prevailing wage calculations for H-1B, H-1B1, E-3, and PERM programmes, according to Jackson Lewis.
That DOL proposal would change the four-tier prevailing wage structure using Occupational Employment and Wage Statistics survey percentiles. The current levels are set at the 17th, 34th, 50th, and 67th percentiles. The proposed levels would rise to the 34th, 52nd, 70th, and 88th percentiles. The DOL rule would apply prospectively to prevailing wage requests pending on the effective date and to new Labor Condition Applications or prevailing wage determination requests filed on or after that date.
The legislative bill and the DOL rule are distinct mechanisms. Congress sets statutory thresholds through legislation. The DOL sets prevailing wages through regulation. An employer could face both a higher prevailing wage under the DOL rule and a higher salary exemption threshold under the bill, if both were enacted.
Practical impact on employers and Indian tech workers
The H-1B programme is heavily used by technology companies and IT services firms, and Indian nationals receive a large share of H-1B visas. The proposal forms part of a wider US debate over the programme, with some lawmakers seeking tighter safeguards for domestic workers while employers in sectors such as technology rely on it to recruit skilled professionals for specialised roles.
For HR and payroll teams, the immediate practical point is that nothing has changed yet. The bill has not become law, and the DOL prevailing wage rule remains a proposal. Employers should continue to follow current H-1B wage rules and monitor both the legislative and regulatory tracks separately.
The table below summarises the key differences between the current rules, the proposed legislation, and the proposed DOL regulation.
| Item | Current rule | Proposed legislation | Proposed DOL rule |
|---|---|---|---|
| Salary exemption threshold | $60,000 since 1998 | Nearly $140,000, linked to twice the National Average Wage Index | No flat threshold change |
| Prevailing wage percentiles | 17th, 34th, 50th, 67th | No change proposed | 34th, 52nd, 70th, 88th |
| Applies to | H-1B-dependent employers | H-1B-dependent employers | H-1B, H-1B1, E-3, PERM |
| Status | In force | Early legislative stage | Proposed rule, not final |
What HR teams should watch
Employers with H-1B-dependent classifications should review their current H-1B salary distribution against the proposed $140,000 figure. Those with significant numbers of H-1B workers earning between $60,000 and $140,000 would face the largest compliance shift if the bill became law, because those workers would lose the salary-based exemption and the employer would need to meet the additional recruitment and non-displacement attestation requirements.
The DOL prevailing wage proposal includes a provision to retain the option to use private wage surveys in certain cases, according to Jackson Lewis. The DOL also expects the rule to result in billions of dollars in annual wage transfers from employers to workers over ten years, with minimal direct compliance costs aside from familiarisation expenses.
Neither proposal has taken effect. Employers should confirm the status of both with immigration counsel and monitor whether the legislative bill advances or the DOL finalises its rule. State and local requirements may add further considerations, so employers should verify rules for their specific locations.
Sources: ETHRWorld
Photo: US Capitol Building at night Jan 2006 by Diliff, Public domain
