Protecting American Workers Through H–1B Modernization Act.
- Sponsor
- Sen. Husted, Jon [R-OH]
- Committees
- Judiciary Committee (primary)
- Last action
- Sep 30, 2026
Bottom line
This bill aims to raise the minimum wage for certain H-1B visa holders, potentially reducing the incentive for companies to hire foreign workers at lower salaries and promoting higher wages for both domestic and foreign workers in specialized occupations.
What it actually does
This bill amends the Immigration and Nationality Act to significantly increase the minimum wage requirement for H-1B nonimmigrant workers who are exempt from certain labor condition application requirements. It replaces the current fixed dollar amount of $60,000 with a dynamic threshold of "not less than twice the national average wage index" for the most recently calculated year, effectively tying the minimum wage to broader economic indicators.
Proponents argue
Supporters argue that this modernization will prevent the exploitation of H-1B workers by ensuring they receive wages commensurate with their skills and the prevailing economic conditions. They contend it will protect American workers from unfair competition by removing the incentive for companies to replace them with lower-paid H-1B visa holders, thereby strengthening the domestic labor market and encouraging employers to invest in American talent.
Opponents contend
Critics might argue that significantly increasing the wage threshold could make it harder for businesses, especially startups and those in regions with lower average wages, to hire highly skilled foreign talent when domestic talent is scarce. They may contend that this could stifle innovation, reduce competitiveness, and potentially lead to job outsourcing if companies cannot find the necessary specialized skills within the U.S. at the new, higher wage floor.
The bill is extremely short and straightforward, allowing for a quick and easy understanding of its core change.
Section 2, page 1
Exempt H-1B Nonimmigrant Wage Modernization
This provision amends the Immigration and Nationality Act to change how the minimum wage for certain "exempt" H-1B workers is calculated. Currently, these workers must be paid at least $60,000. This bill replaces that fixed amount with a dynamic standard: "not less than twice the national average wage index" as defined by the Social Security Act for the most recent year. This means the minimum wage for these H-1B workers will automatically adjust upwards with the national average wage, likely resulting in a significantly higher floor than the current $60,000.
Supporters argue
Proponents argue this provision is crucial for protecting both American and H-1B workers. By tying the wage floor to a dynamic national average, it ensures that H-1B workers are paid fair, market-competitive wages, preventing their use as a source of cheap labor. This, in turn, removes a key incentive for companies to displace American workers, fostering a more equitable and competitive labor market.
Critics contend
Opponents might argue that this significant increase in the wage floor could create undue burdens on businesses, particularly those in high-demand tech fields or smaller companies that rely on specialized H-1B talent. They contend it could make it prohibitively expensive to hire foreign workers, even when domestic talent is unavailable, potentially hindering innovation and economic growth.
Tradeoffs
The provision balances the goal of protecting workers from wage depression and exploitation with concerns about businesses' ability to access global talent and maintain competitiveness. It aims to ensure fair wages but risks increasing labor costs to a point where some companies might struggle to fill critical roles or choose to offshore operations.
The bill references "section 209(k)(1) of the Social Security Act (42 U.S.C. 409(k)(1))" to define the "national average wage index" which will be used to calculate the new H-1B wage floor.
Section 2
Why it matters:This is standard legislative drafting practice to avoid redundancy and ensure consistency with existing legal definitions. It is not intended to be evasive.
Case for: Referencing existing definitions streamlines legislation and ensures legal consistency across different statutes, preventing conflicting interpretations of common terms.
Case against: For a lay reader, requiring external research to understand a core component of the bill adds a layer of complexity, making the bill less immediately accessible.
Estimated impact: The "national average wage index" for 2022 was $63,795.13. Twice this amount would be approximately $127,590. This represents a significant increase from the current $60,000 threshold for exempt H-1B workers.