The Immigration and Nationality Act (INA) requires that the hiring of a foreign worker will not adversely affect the wages and working conditions of U.S. workers comparably employed. Employers must offer wages that meet or exceed the prevailing wage rate for the occupational classification in the area of employment.

The prevailing wage rate is the average wage paid to similarly employed workers in a specific occupation within the intended employment area. Employers can obtain this wage rate by submitting a request to the National Prevailing Wage Center (NPWC) or by accessing legitimate sources of wage information, such as the Foreign Labor Application Gateway (FLAG) System.

Most employment-based visa programs administered by the Department of Labor require adherence to prevailing wage requirements. Specifically, the H-1B, H-1B1, and E-3 programs mandate employers pay the higher of the prevailing wage or the actual wage paid to workers with similar skills and qualifications.

To request a prevailing wage determination (PWD) for nonagricultural immigration programs such as PERM, H-1B, H-1B1, H-2B, and E-3, employers must complete the ETA Form 9141 and submit it to the NPWC. Electronic filing through the FLAG System is strongly recommended.

The Office of Foreign Labor Certification (OFLC) advises employers to submit PWD requests at least 60 days before the determination is needed, as processing times may vary.

Prevailing Wage Trends in FY2024

In FY2024, the U.S. Department of Labor processed 229,454 prevailing wage requests, with the PERM program dominating at 91.7% of all determinations. Top occupations included software developers, registered nurses, and data scientists, highlighting the continued reliance on foreign labor for highly skilled positions.

Major employers such as Microsoft, Meta Platforms, and Intel accounted for significant requests, emphasizing the tech sector's heavy use of the program. Additionally, healthcare and academic employers played a prominent role in H-1B, H-1B1, and E-3 wage requests, with high-demand roles in research and teaching.

The H-2B and CW-1 programs reflected different labor needs, catering primarily to seasonal and regional demands. Occupations like landscaping workers, maids, and restaurant cooks dominated H-2B requests, while CW-1 highlighted maintenance and bookkeeping roles specific to the Northern Mariana Islands.

Although requests for most programs saw a decline compared to FY2023, the program remains essential for maintaining a balance between meeting employer needs and protecting U.S. labor standards. With 93,300 determinations still pending as of September 30, 2024, the data underscores the complexity and importance of the prevailing wage process in supporting economic growth across industries.

For more detailed information, please read the blog: FY2024 Prevailing Wage Trends and Insights Across U.S. Visa Programs