Proposed Legislation Aimed to Raise H-1B Wage Thresholds

New legislation proposes updating the $60,000 wage threshold for H-1B visa employer hiring requirements.

Updated on Oct. 14, 2026 in Employment

Proposed Legislation Aimed to Raise H-1B Wage Thresholds

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Should federal H-1B visa wage thresholds be automatically increased to keep pace with inflation?

Representative Glenn Grothman has introduced the Protecting American Workers Through H-1B Modernization Act to address long-standing wage exemption rules for H-1B visas. The bill seeks to modernize requirements that have remained unchanged since 1998.

Why it matters

The current $60,000 threshold for exempting employers from American worker hiring requirements has not been adjusted for inflation since 1998. This disparity may affect domestic labor market protections and the cost dynamics of hiring international talent.

The current $60,000 wage exemption threshold for H-1B employers is significantly below the current SSA National Average Wage Index of nearly $70,000. If adjusted for inflation since its 1998 inception, the threshold would reach nearly $140,000.

The players

Glenn Grothman

Representative who introduced legislation aimed at updating federal H-1B visa employer requirements.

John Husted

Senator who introduced a companion bill in the Senate regarding H-1B visa policies.

The details

Under current law, employers can bypass requirements to prove they have searched for American workers if they pay H-1B visa holders at least $60,000 annually. They also receive exemptions if the visa holder possesses a master's degree or higher. The proposed legislation seeks to update these conditions to better reflect current wage realities and labor market trends.

1998: The $60,000 wage exemption threshold was established.
October 14, 2026: Rep. Grothman introduced the H-1B modernization bill.

Money Landscape

This legislation represents an effort to update federal visa policies to align with modern economic conditions. It specifically addresses a 1998 benchmark that has failed to keep pace with decades of inflation and wage growth.

Changes to these thresholds could impact hiring costs and recruitment strategies for businesses relying on H-1B talent. You should consult with a qualified financial or tax professional to understand how shifts in labor regulations might affect your business or household budget.

The takeaway

The proposed legislation highlights how long-standing wage thresholds can diverge from current economic realities due to inflation. Readers should track the progress of this bill to understand potential future changes in visa-related business costs.