H-1B Exemption Bill Could Set a $146,000 Wage Test; Cloudera Faces PERM Ban
An October 13 House bill would raise a wage threshold used by certain H-1B-dependent employers. On October 16, the Departments of Justice and Labor announced a separate settlement barring Cloudera from the PERM labor certification program for 24 months.
The bill has not become law. The Cloudera restrictions are part of a settlement.
What Would the H-1B Bill Change?
H-1B-dependent employers generally have additional obligations concerning the recruitment and displacement of U.S. workers. Under current Department of Labor guidance, a worker may qualify for an exemption from those obligations by earning at least $60,000 a year or holding a qualifying master’s degree or higher.
Source: U.S. Department of Labor | Fact Sheet 62Q on exempt H-1B workers
The proposed Protecting American Workers Through H-1B Modernization Act (H.R. 10799) would replace the fixed $60,000 figure with twice the Social Security Administration’s most recently calculated National Average Wage Index. Using the latest published index, that would be about $146,000. The degree-based exemption would remain.
The proposed figure is not a minimum salary for all H-1B workers. It applies to one route for meeting a specific exemption. The current $60,000 provision remains in effect while the bill is under consideration.
Source: Office of Rep. Glenn Grothman | October 13, 2026 press release
What Happened at Cloudera?
In its October 16 announcement, DOJ said qualified U.S. workers had not received a fair opportunity to apply for seven positions recruited through PERM. According to the settlement agreement, an email address listed in the recruitment materials could not receive applications from outside accounts. Cloudera denied discriminatory intent.
Under the agreement, Cloudera will stop filing PERM applications and conducting PERM recruitment for 24 months. It will also establish a $1.4 million back-pay fund for eligible U.S. workers, pay $600,000 in civil penalties and undertake additional compliance measures. The 24-month period begins on the date of the company’s most recent withdrawal of an affected PERM application.
Source: Bloomberg Law | October 16, 2026 report; photograph credited to Anna Moneymaker/Getty Images
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Talk with iCross × ARCFE about EB-5 project options and the investment process. For immigration advice about an individual case, consult a qualified U.S. immigration attorney.
What Should Employees Check?
Cloudera employees pursuing an employer-sponsored Green Card should ask the company and their immigration attorney whether their PERM application was withdrawn, remains pending or needs to be restarted. They should also review how any delay affects their next filing and current immigration status. The PERM settlement does not, by itself, end an employee’s H-1B status.
Employees elsewhere do not need to meet the proposed $146,000 test under this bill today. Those working for an H-1B-dependent employer can follow the bill’s progress and discuss with counsel which exemption, if any, their employer uses.
For families planning permanent residence, EB-5 offers a path that does not require a specific employer to sponsor a job or complete PERM recruitment. It has its own investment, lawful-source-of-funds and job-creation requirements. Eligible applicants in the United States may be able to file Form I-485 with or after Form I-526E when a visa is immediately available. Work and travel authorization require separate applications and approvals.
This distinction may be especially relevant to India-born professionals facing long EB-2 or EB-3 waits. EB-5 visa availability must still be checked each month by category and country of chargeability. Under the statute, the minimum EB-5 investment amounts are scheduled to adjust on January 1, 2027, for petitions filed on or after that date. Families considering EB-5 should allow time to review both their immigration options and the investment itself.
iCross × ARCFE will continue to follow H-1B legislation, PERM enforcement and EB-5 developments relevant to U.S.-based families.
Cover photograph: Anna Moneymaker/Getty Images.
This article is for general information and does not constitute legal, immigration, tax or investment advice. H.R. 10799 has not become law. The effect of Cloudera’s settlement depends on each employee’s case. Consult a qualified U.S. immigration attorney before making filing or status decisions. EB-5 investments involve risk; immigration approval and repayment are not guaranteed.
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