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The higher-salaries rule could make it more difficult for startups to hire foreign talent as well as to lure them from large tech companies, said Sophie Alcorn, a founding partner at Alcorn Immigration Law who focuses on tech startup immigration. The new wage rule, which went into effect on Thursday via the Department of Labor, requires companies to pay entry-level H1-B workers in the 45th percentile of their profession's salary, a significant hike from the previous requirement of the 17th percentile. And starting wages for the highest-skilled workers would rise to the 95th percentile, up from the 67th percentile.
Satala expects to see lawsuits challenging the rules in the coming months while companies test to see how permanent they will be.
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