Proposed H-1B Bill Could Raise Salary Thresholds
Businesses that rely on H-1B visas may face significantly higher payroll costs under a new Senate bill.
Updated on Oct. 7, 2026 in Employment
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Senator Jon Husted has introduced the Protecting American Workers Through H-1B Modernization Act (S.5638), which proposes replacing the static $60,000 salary threshold with a wage-indexed formula. The move aims to curb the use of the visa program to bypass domestic hiring.
Why it matters
If passed, this legislation would force companies to adjust their compensation structures to meet a floating minimum wage threshold. The change would close a long-standing loophole that critics claim allows firms to underpay foreign workers compared to domestic market standards.
The proposed bill would replace the $60,000 threshold established in 1998 with a calculation tied to twice the National Average Wage Index. This shift could push required salary minimums to nearly $140,000 annually, depending on economic data.
The players
Senator Jon Husted
A United States Senator from Ohio who is the primary sponsor of the Protecting American Workers Through H-1B Modernization Act.
Senate Judiciary Committee
The standing Senate committee responsible for conducting hearings and overseeing the review of immigration and labor-related legislation.
The details
The bill mandates that H-1B salary minimums be pegged to twice the Social Security Administration's National Average Wage Index, which currently sits at $70,000. This mechanism ensures that as national wages rise, the required pay floor for visa holders will increase automatically. Employers currently using the 1998-era threshold would be forced to recalibrate their international recruitment budgets and compensation models to maintain compliance.
Timeline
The current salary threshold was established in 1998.
Senator Husted introduced S.5638 on October 6, 2026.
Market Landscape
The proposal marks a departure from the 1998 H-1B visa statutory salary threshold that has defined employer costs for nearly three decades. It aligns with broader legislative trends attempting to modernize employment criteria to match current national wage data.
Operators currently relying on H-1B talent should review their long-term hiring budgets to account for a potential doubling in mandatory base pay. Businesses should prepare to consult with counsel on how this indexed formula might impact existing payroll and international recruitment strategies.
The takeaway
The proposed legislation highlights a shift toward dynamic salary floors for skilled visa programs that evolve alongside national wage indices. Businesses should monitor the status of S.5638 within the Senate Judiciary Committee to assess if their current compensation packages remain compliant.
Further reading
For broader analysis on labor market regulations, visit the Employment section.
Source note: This article includes information reported by YesPunjab – No.1 News-Portal. Latest News from Punjab, India & the World..
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