Can the employer pay below market rate?

No. Under the H-1B, the employer cannot pay below market rate. The law requires that the compensation offered to the foreign professional be consistent with local conditions, precisely to protect both the worker and the American labor market.

In practice, the employer must pay at least the so-called prevailing wage, defined by the United States Department of Labor based on the role performed and the location of employment. This benchmark serves as the floor for compensation.

Offering a salary below this floor can constitute a violation of immigration regulations and expose the company to administrative and legal sanctions. The requirement exists to prevent fraud and the hiring of foreign workers at rates that undercut the market.

Because salary parameters and rules can change, it is worth confirming the applicable prevailing wage and current requirements with the Department of Labor and the USCIS, or with a trusted immigration attorney.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.