Key Takeaways
• DHS updated H-1B rules on January 17, 2025, cutting applications by 39%, changing specialty occupation definition.
• Proposed H-1B salary minimum would rise from $60,000 to over $80,000 using median local wage as baseline.
• 30 top tech firms hired 34,000 H-1B workers in 2022 but laid off 85,000, raising wage theft concerns.
Reports of Potential Massive Pay Cuts for H-1B Tech Workers: What’s Happening and What It Means
Recent reports have raised alarms about possible large pay cuts for H-1B visa holders working in the tech industry. These changes could affect thousands of skilled workers, their families, and the companies that rely on their talent. The Department of Homeland Security (DHS) has introduced new rules and is considering more changes that could reshape how the H-1B visa program works, especially for tech workers. Here’s a detailed look at what’s happening, why it matters, and what it could mean for different groups.
What’s Changing With the H-1B Visa Program?
The H-1B visa allows U.S. employers to hire foreign workers in specialty jobs that usually require a college degree or higher. Most H-1B holders work in the technology sector, filling roles like software developer, data analyst, and engineer. The Department of Homeland Security is responsible for managing the H-1B program and making sure it follows U.S. laws.
On January 17, 2025, the Department of Homeland Security put a new rule into effect to modernize the H-1B program. This rule changes how “specialty occupation” is defined, adds protections for some F-1 students (international students studying in the United States 🇺🇸), and brings in new enforcement steps to keep the program honest and fair. These changes come at a time when the number of H-1B applications has dropped sharply. In the 2025 fiscal year, H-1B registrations fell by almost 39% compared to the year before, going from 758,994 to 470,342. This big drop shows that the program is being used differently, possibly because of new rules and changes in the job market.
Why Are There Talks of Pay Cuts for H-1B Tech Workers?
One of the biggest issues facing H-1B tech workers right now is a proposed change to how much they must be paid. In early 2025, lawmakers introduced an amendment that would raise the minimum salary for new H-1B workers to over $80,000 a year. This is a big jump from the old minimum of $60,000, which has been in place for many years.
The new rule would also use the “median local wage” as the starting point for H-1B salaries. The median wage is the middle number in a list of all wages for a job in a certain area—half of workers make more, and half make less. This change could mean much higher pay requirements in cities where tech jobs pay a lot, like San Francisco or Seattle.
Supporters of the change say it will help protect American workers by making sure companies don’t hire foreign workers just because they’re cheaper. But critics warn that it could:
- Make it too expensive for small businesses and startups to hire H-1B workers
- Stop international students from staying in the United States 🇺🇸 after graduation
- Push companies to move jobs overseas instead of hiring in the United States 🇺🇸
How Are H-1B Tech Workers Paid Compared to U.S. Workers?
There’s a lot of debate about whether H-1B workers are paid fairly. A 2020 report from the Economic Policy Institute found that 60% of all H-1B jobs paid less than the local median wage. In tech, this meant H-1B workers often earned 17% to 34% less than U.S. workers doing the same job.
Big tech companies like Amazon, Google, and Microsoft have used the H-1B program to legally pay foreign workers less than the local average. While this is allowed under current rules, it raises questions about fairness and whether the program is being used as intended.
Even more troubling are cases where companies have been accused of wage theft—paying H-1B workers less than they promised or less than the law requires. For example, HCL Technologies, a large tech company, was found to have paid H-1B workers less than U.S. workers with the same skills. Internal documents showed this was part of their business plan. Estimates suggest HCL may have underpaid H-1B workers by about $95 million every year.
What Is Project 2025 and How Could It Affect H-1B Tech Workers?
Project 2025 is a set of policy ideas from conservative groups that could bring even more changes to the H-1B program. Some of the main ideas include:
- Lowering the annual cap on H-1B visas (currently 85,000 per year)
- Raising the minimum wage for H-1B workers
- Switching from a lottery system (where visas are given out randomly) to a merit-based system that favors higher-paid and more experienced workers
Supporters of these changes say they will protect American jobs and make sure only the most skilled workers come to the United States 🇺🇸. But critics worry that these changes could make it even harder for companies to find the workers they need, especially in tech and healthcare, where there are already shortages.
How Are Tech Companies Using the H-1B Program?
The way tech companies use the H-1B program has come under a lot of scrutiny. In 2022, the top 30 companies hiring H-1B workers brought in 34,000 new H-1B employees. At the same time, these companies laid off at least 85,000 workers during 2022 and early 2023.
This has led to concerns that companies might be replacing U.S. workers with cheaper H-1B workers or using the program to lower wages for everyone. There are also worries that H-1B workers, who depend on their employer to stay in the country, have less power to speak up about unfair treatment.
What Are the Political Views on H-1B Visas?
The politics around H-1B visas are complicated. During his time as president, President Trump signed an order to limit the H-1B program to only the highest-paid or most-skilled workers. However, in a recent interview, President Trump said, “I’ve always liked the visas, I have always been in favor of the visas. That’s why we have them.”
Elon Musk, who is now a close adviser to the president-elect, has also spoken out about the issue, saying he would “go to war on this issue” in a social media post. These mixed messages make it hard to predict what will happen next.
What Does All This Mean for H-1B Tech Workers?
For people working in the United States 🇺🇸 on an H-1B visa, these changes bring a lot of uncertainty and stress. Here are some of the main challenges:
- Laid-off H-1B workers have only 60 days to find a new job or leave the country. This short window can force people to accept lower pay or poor working conditions just to stay in the United States 🇺🇸.
- Current H-1B workers may be afraid to report problems at work, like wage theft or discrimination, because losing their job could mean losing their visa.
- Getting a green card (permanent residency) is getting harder for H-1B workers. Some tech companies, like Google, have stopped helping H-1B employees apply for green cards because of recent layoffs.
- New graduates and early-career workers could be hit hardest by higher minimum salaries. If the minimum pay goes up to $80,000 or more, many entry-level jobs may no longer qualify for H-1B sponsorship.
How Can H-1B Workers and Employers Prepare?
With so many changes happening, it’s important for H-1B workers and their employers to stay informed and ready to act. Here are some practical steps:
- Keep up with official updates from the Department of Homeland Security and U.S. Citizenship and Immigration Services (USCIS). The USCIS H-1B page is the best place for the latest rules and forms, including Form I-129, which is used to apply for or change H-1B status.
- Review employment contracts and make sure all pay and job details are clear and fair.
- Seek legal advice if you think your employer is not following the rules or if you’re facing a layoff.
- Plan ahead for possible changes in salary requirements or visa rules, especially if you’re a recent graduate or early-career worker.
What Are the Broader Impacts on the Tech Industry and U.S. Economy?
The H-1B program has long been a way for the United States 🇺🇸 to bring in skilled workers from around the world. Many of these workers help drive innovation, create new companies, and fill jobs that are hard to fill with U.S. workers alone.
If the program becomes too expensive or difficult to use, companies may:
- Move jobs overseas to countries with more flexible rules
- Struggle to find enough skilled workers, slowing down growth and innovation
- Lose out on talented international students who choose to work in other countries instead
On the other hand, raising wages for H-1B workers could help make sure the program is used fairly and that U.S. workers are not pushed out of good jobs.
What Do Experts and Advocates Say?
According to analysis by VisaVerge.com, the future of the H-1B visa program will depend on finding a balance between protecting American jobs and keeping the United States 🇺🇸 open to global talent. Many experts believe that clear, fair rules are needed to stop abuse of the program while still allowing companies to hire the workers they need.
Advocates for H-1B workers say that stronger protections are needed to stop wage theft and make sure all workers are treated fairly. They also call for more support for H-1B workers who lose their jobs, such as longer grace periods or help finding new work.
Key Takeaways and Next Steps
- The H-1B visa program is facing big changes, especially for tech workers.
- New rules could mean higher minimum salaries and tougher requirements for both workers and employers.
- There are real concerns about wage theft, layoffs, and the treatment of H-1B workers.
- Both workers and employers should stay informed, review contracts, and be ready for more changes.
- The future of the program will likely depend on political decisions and ongoing debates about the best way to balance American jobs with the need for skilled workers from around the world.
For the most current information on the H-1B program, including eligibility, forms, and updates, visit the official USCIS H-1B page.
As the situation develops, it’s important for everyone involved—workers, employers, and policymakers—to work together to create a system that is fair, transparent, and supports both the U.S. economy and the people who help drive it forward.
Learn Today
H-1B Visa → A U.S. visa allowing employers to hire foreign workers in specialty occupations needing a college degree or higher.
Department of Homeland Security (DHS) → Federal agency managing immigration programs, including regulations and enforcement of the H-1B visa.
Median Local Wage → The middle salary amount for a specific job in an area; half earn more, half earn less.
Wage Theft → Illegal practice of paying workers less than promised or below legal minimum wages required by law.
Project 2025 → A conservative policy initiative proposing stricter H-1B visa caps and merit-based allocation favoring higher wages.
This Article in a Nutshell
New DHS rules are reshaping the H-1B visa, affecting tech workers’ pay and hiring. Proposed salary hikes risk layoffs, while wage theft allegations spotlight fairness. Changes challenge startups and immigrants. The future depends on politics and policy, urging workers and employers to stay informed and prepare for evolving immigration dynamics.
— By VisaVerge.com
