New H-1B and PERM Prevailing Wage Rates Take Effect Today

As reported yesterday, the Department of Labor (DOL) released a new interim final rule (IFR) significantly increasing the required prevailing wage rates that must be paid to H-1B, H-1B1 and E-3 temporary workers, as well as the required wages for the PERM-based green card process. This IFR was published in the Federal Register and takes effect today, October 8th.

This change does not apply to H-1B, H-1B1, and E-3 petitions and applications that are currently pending, or approved, or PERM applications where the prevailing wage determination (PWD) has already been issued by the DOL.

As stated in our alert yesterday, this rule will be subject to litigation, and it is likely to be enjoined (i.e. blocked) by a court within a few weeks. In the meantime, we are working with our clients to find alternative to the government’s prevailing wage figures, including private salary surveys, where necessary. As also reported yesterday, the Department of Homeland Security (DHS) has released a companion IFR imposing additional new restrictions on the H-1B program, which has also been published in the Federal Register today. This rule is slated to take effect 60 days from today, on December 7, 2020. We expect that this rule will also be litigated, and will likely be enjoined before this effective date. We will be sending an invitation to our clients to join a webinar next week to discuss these and other recent updates on immigration.