US Senator Proposes Raising H-1B Salary Threshold to Nearly $140,000

US Republican Senator Jon Husted has introduced legislation that would replace the existing $60,000 H-1B salary threshold with a wage-indexed formula that could put the threshold at nearly $140,000, potentially tightening an exemption used by certain H-1B-dependent employers.

Husted, who represents Ohio, introduced the Protecting American Workers Through H-1B Modernization Act on Tuesday. The proposal would tie the threshold to twice the Social Security Administration’s National Average Wage Index, allowing it to rise automatically as average US wages increase.

The change would apply to H-1B-dependent employers — companies with a workforce share of H-1B employees above a specified level.

Under current rules, such employers generally have to attest that they have first sought to hire US workers before sponsoring additional H-1B employees. However, that requirement does not apply when an H-1B worker is paid at least $60,000 annually or holds a master’s degree or higher.

Husted’s bill specifically targets the salary-based exemption.

“For decades, companies have been able to sidestep hiring American workers because of a salary threshold that hasn’t budged since 1998. That’s not modernization, that’s a loophole,” Husted said.

The $60,000 threshold was established in 1998 and was intended to equal twice the Social Security Administration’s National Average Wage Index at the time. Husted’s office said the figure has not been adjusted since then, while the current index is nearly $70,000, making twice the index nearly $140,000.

The proposed formula would therefore replace the fixed dollar amount with a dynamic threshold linked to wage growth.

The H-1B programme is widely used by technology companies and other US employers to hire foreign professionals for specialised positions. Supporters say the programme helps businesses access specialised talent, while critics have raised concerns about its impact on American workers and wages.

The proposal would now go through the congressional legislative process. The Senate legislative record lists the measure as S.5638, with the bill referred to the Senate Judiciary Committee.