H-1B Salary Explained: Understanding H-1B Wage Levels

In 2024, navigating H-1B visa salary structures is essential for those seeking employment in the U.S. in specialty occupations. These salaries, set to reflect the specialized skills required, vary by experience, education, and location. Understanding the Department of Labor’s prevailing wage is key, as it ensures fair compensation and sets a minimum salary benchmark. Moreover, H-1B workers must be paid at least this wage or the actual wage for similar positions, whichever is higher, adhering to ethical employment standards.

H-1B Wage Levels

H-1B wage levels are categories used by the U.S. Department of Labor (DOL) to determine the minimum salary that must be paid to an H-1B worker in a particular occupation and geographic area. The wage levels are based on the prevailing wages for similar positions in the same location.

There are four H-1B wage levels:

Level 1 (Entry-level)

This wage level is assigned to jobs requiring a basic understanding of the occupation and limited exercise of judgment. Employees at this level perform routine tasks that require limited, if any, exercise of judgment. They receive specific instructions on required tasks and their work is closely supervised.

Level 2 (Qualified)

This wage level is assigned to jobs that require a good understanding of the occupation and the ability to perform moderately complex tasks. Employees at this level have attained, either through education or experience, a good understanding of the occupation. They exercise judgment within the limits of established policies and procedures and receive only technical guidance on unusual or complex issues.

Level 3 (Experienced)

This wage level is assigned to jobs that require a sound understanding of the occupation and the ability to perform complex tasks. Employees at this level possess a sound understanding of the occupation and have attained, either through education or experience, special skills or knowledge. They work with considerable latitude for judgment and receive only occasional guidance or direction.

Level 4 (Fully Competent)

This wage level is assigned to jobs that require complete competence and deep specialized skills. Employees at this level use advanced skills and diversified knowledge to solve unusual and complex problems. They receive little guidance and exercise considerable latitude in decision-making.

Employers must pay H-1B workers at least the prevailing wage for the respective level based on the job requirements, as determined by the best fit with the DOL’s criteria. The prevailing wage for each level varies based on the specific occupation and geographic location of the job.

H-1B Wage Levels and Salary Raises

When it comes to H-1B visas and salary raises, the relationship between wage levels and allowable pay increases can be a confusing and frustrating landscape to navigate. In this section, we’ll explore the real-world experiences of an H-1B worker seeking a significant salary increase and the challenges they faced in determining what is permissible under the complex regulations surrounding H-1B wage levels.

A Case Study in H-1B Underpayment

To illustrate the complexities of H-1B wage levels and salary raises, let’s consider the story of one individual (whom we’ll call “Sam”) who shared their experience on Reddit. Sam, who works in data and business analytics, is currently employed under a cap-exempt H-1B visa, earning a salary of $37,000 per year. This salary is not only well below the market rate for their role and location but also falls short of the Level 2 prevailing wage of $39,000 that was determined for their H-1B renewal.

Recognizing the significant underpayment, Sam requested a salary increase to $50,000, which would bring them closer to the midpoint of the Level 2 prevailing wage range of $40,000 to $51,000. However, Sam’s employer and the company’s lawyer suggested that such a substantial increase could be problematic, citing concerns about the percentage increase and potential issues with Sam’s H-1B status.

Navigating the Complexity of Wage Levels and Raises

Sam’s situation raises several important questions about H-1B wage levels and the permissibility of salary increases. Key points of confusion and concern include:

1. Can an H-1B employee’s salary be increased beyond the prevailing wage range for the wage level at which their H-1B was filed?
2. Does a significant salary increase necessitate refiling or amending the H-1B petition, even if the job duties remain unchanged?
3. Are there any specific restrictions or limitations on the percentage increase in salary that an H-1B worker can receive?

Many H-1B workers find themselves in situations similar to Sam’s, grappling with these questions and seeking clarity on their rights and options.

Insights from the H-1B Community

In response to Sam’s post, several Reddit users offered their own experiences and insights into the issue of H-1B wage levels and salary raises. Some key takeaways:

• Wage levels represent a minimum threshold, not a maximum cap. As one user pointed out, “Wage levels are minimum. Nothing is stopping the company to pay you a wage above the minimum, even if it is in the next level.”
• Substantial salary increases are possible without requiring a refiling or amendment in many cases, particularly if the job duties remain the same. Another user shared, “I’m not sure to be honest but I know when I went for a GC the DoL said I was being underpaid by a chunk which was surprising to me as I work for a non profit- they must have compared me with for profit orgs as my title is Director of External Relations. In general the system wants you to get paid more so you aren’t undercutting Americans so I think you can call bullshit..”
• Ultimately, many H-1B workers in similar situations find that their employers use wage level restrictions as an excuse to avoid providing fair and market-competitive salaries. As one user bluntly put it, “They’re not going to give you a raise because you’re underpaid. They know it and are just taking advantage of you not doing anything about it.”

Frequently Asked Questions

In this section, you’ll find specific details on how H-1B salaries are determined, their requirements, and where to get further information.

How is the prevailing wage determined for H-1B visa applications?

The prevailing wage for H-1B visa applications is set by the U.S. Department of Labor. It’s based on the job role, the geographical location, and comparable wages within the industry.

What is the minimum salary requirement for an H-1B visa holder?

H-1B visa holders must be paid the higher of the actual wage level paid by the employer to all other individuals with similar experience and qualifications, or the prevailing wage for the occupation in the area of employment. The general minimum salary is often discussed around $60,000 annually but varies by location and role.

Where can I find a database of certified H-1B salaries?

You can find a database of certified H-1B salaries on various websites that track and compile H-1B visa salary information. These databases are typically based on the Labor Condition Application (LCA) data released by the Department of Labor.

What are the compliance requirements for an employer regarding H-1B salaries?

Employers must comply with Department of Labor regulations, which include paying at least the prevailing wage or the actual wage level paid to other employees in the same role, whichever is higher. They must also document and provide evidence of compliance to federal authorities.

How can I compare H-1B visa salaries for different occupations and regions?

To compare H-1B visa salaries for different occupations and regions, you can use various online tools and databases that compile this information based on LCA data. These resources provide a valuable reference point for understanding compensation across different sectors and locations.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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