PWBM Says H-1B Benchmarking Lifts Pay $27,686, Excludes 56% of Registrations
Updated
Updated · Penn Wharton Budget Model · May 25
PWBM Says H-1B Benchmarking Lifts Pay $27,686, Excludes 56% of Registrations
1 articles · Updated · Penn Wharton Budget Model · May 25
PWBM found DOL’s proposed experience-benchmarking option would push 56% of current H-1B registrations below the new Level I floor, leaving them with no lottery entries unless employers raise pay or withdraw.
Mean compensation for selected workers would rise $27,686, or 24.7%, versus the old random lottery—$7,076 more than under DOL’s main proposed wage rule—because the benchmark rewards wages high relative to a worker’s education and experience.
Selected workers would skew younger under the alternative: average age falls 2.3 years, the prior F-1 share rises 9.1 percentage points, and India’s selection share drops 11.8 points as mid-career tech applicants are screened out.
Strategic occupational reclassification could trim about 12% of the pay gain, leaving an estimated 21.6% increase, still above the 14.9% residual gain PWBM estimated for the NPRM’s primary rule.
Will the H-1B wage overhaul push U.S. tech jobs overseas or create a more competitive domestic workforce?
As new H-1B rules favor young graduates, what happens to experienced foreign tech talent previously vital to U.S. innovation?
H-1B Prevailing Wage Overhaul 2026: How DOL’s Experience Benchmarking Could Raise Minimum Salaries by $14,000 and Reshape U.S. Talent Acquisition
Overview
The U.S. Department of Labor has proposed a major overhaul of the H-1B visa program’s wage-setting process, introducing a four-tiered wage structure based on data from the Occupational Employment and Wage Statistics survey. This new system aims to ensure that foreign high-skilled workers are paid wages that match industry standards and do not undercut U.S. workers. The changes apply to both Labor Condition Applications and PERM contexts, and the rulemaking process included a 60-day public comment period. These reforms are designed to create fairer compensation and address concerns about wage depression in the U.S. labor market.