Professionals: Determining the Required Wage for the H-1B Employee

All H-1B workers must be paid the “required” wage. This is the greater of the actual wage or the prevailing wage for the occupational classification. For example, if the actual wage is determined to be $40,000.00 and the prevailing wage is determined to be $50,000.00, the H-1B employee must be paid $50,000.00.

What are Wages for Labor Condition Application Purposes?

Wages, for LCA purposes, are any compensation that is treated as the H-1B employee’s earnings for income tax purposes. The employer under certain circumstances may make certain deductions from wages.

For H-1B purposes, wages must be paid in pro-rated installments no less frequently than monthly (except non-discretionary bonuses).

The Actual Wage

The actual wage is the amount paid to the employer’s existing workers employed in the same occupational classification who possess similar experience, education and qualifications as the H-1B candidate and who are employed in the same geographical area. Where no such other employees exist at the place of employment, the actual wage shall be the wage paid to the H-1B worker by the employer.

The Prevailing Wage

The prevailing wage is the weighted average rate of wages paid to workers similarly employed in the geographical area of intended employment. The prevailing wage must be determined at the time of LCA filing and is based upon the best information available at that time.