As reported in our prior alert, the Department of Labor (DOL) has issued its final rule Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States. Published today in the Federal Register, the Final Rule is effective March 15, 2021. The rule increases wages employers are required to pay H-1B workers by the percentiles we previously reported for the four wage levels utilized by the DOL—35th percentile for Level 1, followed by 53rd, 72nd and 90th percentiles. The rule outlines a phased approach to implementing wage increases over the next three and a half years. On July 1, 2021, the DOL will begin applying its new wage-setting methodology on an incremental basis when releasing its annual wage data by occupation and geographic area. The introduction of an annual increase in wages on July 1 will result in the DOL reaching the percentiles (discussed below) as of July 1, 2024.
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