Higher wages for H-1B visas may hinder U.S. hiring

A new study warns that proposed wage increases for H-1B visa holders could make it tougher for US companies to hire foreign skilled workers, especially in science and engineering. The National Foundation for American Policy (NFAP) conducted the research and highlighted concerns over a proposal that would require employers to pay H-1B professionals above current market rates. The wage changes would mandate payment at least equal to the "median local wage." This could make it financially difficult for many skilled foreign graduates to secure jobs. The NFAP report suggests that instead of creating more opportunities for U.S. workers, such requirements might lead companies to move jobs overseas. One specific amendment by Senator Bernie Sanders proposes raising wages for H-1B workers by as much as 72%. For instance, a new software developer in San Jose could need to earn over $80,000 more annually than current standards require. Although the Senate has not voted on this amendment, similar proposals may come up as Congress discusses immigration reforms. The NFAP argues that using the median local wage does not accurately represent pay for entry-level jobs, as it often reflects those with many years of experience. This could discourage employers from hiring recent graduates and early-career professionals. The study emphasizes that about 70% of full-time graduate students in fields like electrical engineering and computer science at U.S. universities are international students. The research raises concerns that these proposed wage hikes could drive away top talent and weaken the US workforce in critical sectors, such as artificial intelligence and semiconductor engineering. There are also legal fairness issues, as paying foreign-born graduates much more than experienced U.S. workers might lead to discrimination claims. In the past, similar wage mandates were blocked in court for breaching administrative rules. The NFAP warns that if Congress advances new wage requirements, it could have negative impacts, such as fewer job opportunities for skilled foreign graduates and increased outsourcing by companies. Policymakers will need to consider the broader effects of these wage proposals on the economy and the tech sector.