US lawmakers propose raising H-1B salary threshold to nearly $140,000 for some workers

Republican lawmakers in the United States have introduced legislation to raise a key salary threshold under the H-1B visa programme to nearly $140,000 a year, a move that could affect how some US companies hire skilled foreign professionals, including workers from India.

The proposed Protecting American Workers Through H-1B Modernization Act was introduced by Representative Glenn Grothman of Wisconsin and Senator Jon Husted of Ohio. It seeks to increase a threshold that has remained unchanged since 1998, arguing that the existing amount no longer reflects current wage levels.

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However, the proposed $140,000 figure is not a minimum salary that all H-1B visa holders would have to earn. It relates to an exemption from additional hiring safeguards that apply to certain employers relying heavily on foreign workers.

How does the current H-1B salary rule work?

Under US law, employers classified as H-1B-dependent must meet additional requirements intended to protect American workers. These employers generally have a relatively high proportion of H-1B employees compared with their overall workforce, or meet other criteria based on their workforce size and H-1B employment.

The safeguards include requirements to attest that the employer has taken steps to recruit US workers before hiring certain foreign professionals and has 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 a higher qualification.

The proposed legislation would change the salary-based exemption. Instead of retaining the fixed $60,000 figure, it would link the threshold to twice the Social Security Administration's National Average Wage Index. The lawmakers estimate that this would put the threshold at nearly $140,000 at current wage levels. Since the amount would be linked to the wage index, it could change as average wages change.

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Why are lawmakers proposing the change?

The lawmakers argue that the existing threshold has not kept pace with wage growth and may allow employers to avoid additional hiring safeguards even when they pay foreign workers salaries that no longer reflect the original intent of the exemption.

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.

The proposal forms part of a wider debate in the US over the use of the H-1B programme. While some lawmakers want tighter safeguards for domestic workers, employers in sectors such as technology rely on the programme to recruit skilled professionals for specialised roles.

What is the status of the bill?

The proposal has not become law and remains at an early stage of the legislative process.

The Senate version, S. 5638, was read twice and referred to the Senate Judiciary Committee on October 14, according to Husted's official legislative record.

The bill must progress through Congress and be signed by the US president before the proposed change can take effect. Until then, the existing rules remain in place.

What does this mean for Indian H-1B workers?

Indian professionals make up a substantial share of H-1B workers in the US, particularly in the technology sector. Any change to the programme's employer requirements could influence how companies structure recruitment and assess whether particular workers qualify for exemptions from additional safeguards.

If enacted, the proposal could make the salary-based exemption harder to qualify for, particularly for workers earning below the revised threshold who do not qualify through the higher-qualification route. Employers may need to assess whether additional recruitment and compliance requirements apply when sponsoring such employees. The impact would depend on the employer's classification, the worker's salary and qualifications, and the circumstances of the proposed hiring.

For Indian professionals considering US jobs or already working there, the main distinction is that the proposed threshold would not require every H-1B worker to earn nearly $140,000. It would change the rules governing a specific exemption for certain workers employed by H-1B-dependent companies.

As the bill has not yet become law, workers and employers do not need to treat the proposed amount as a new salary requirement at this stage.