Actual Wage
The wage the employer pays to other employees with similar experience and qualifications for the same job in the same location, H-1B employers must pay the higher of the actual or prevailing wage.
How It Works
The actual wage requirement prevents employers from paying H-1B workers less than they pay their existing employees for the same work. If a company pays its U.S. software engineers $120,000 in its San Francisco office, it must pay an H-1B software engineer at least $120,000, even if the prevailing wage is only $100,000. This provision aims to protect both H-1B and U.S. workers: it prevents H-1B workers from being exploited with below-market pay and prevents employers from using H-1B workers to undercut the wages of domestic employees.
Related Terms
- Prevailing Wage, The average wage paid to workers in a similar occupation in the same geographic area, employers must pay H-1B workers at least this amount to prevent undercutting U.S. wages.
- Labor Condition Application (LCA), A DOL-certified form that employers must file before hiring an H-1B worker, attesting they will pay at least the prevailing wage and not adversely affect working conditions for U.S. workers.
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About This Definition
This definition is part of the H1BVisaTracker H-1B Visa Glossary, 26 terms explaining H-1B sponsorship, work visas, and employment-based immigration in the United States. Written for international workers, employers, and immigration professionals.