What Is DOL's 2026 Proposal to Raise H-1B and PERM Prevailing Wages?
TL;DR: The Department of Labor issued a Notice of Proposed Rulemaking in March 2026 that would raise the four prevailing wage levels used for H-1B, H-1B1, E-3, and PERM (EB-2/EB-3) filings — for example, moving Level I from roughly the 17th percentile to the 34th percentile of local wages. DOL estimates this could raise certified wages by about $14,000 per position on average. As of August 2026, this is a proposed rule, not yet final.
Claim and evidence
Every H-1B Labor Condition Application and PERM Prevailing Wage Determination is tied to one of four wage levels based on Occupational Employment and Wage Statistics (OEWS) survey percentiles. DOL's NPRM argues the current levels let employers pay foreign workers well below what comparable US workers earn — citing an average $10,191 gap between H-1B wages and comparable OEWS-based US wages — and proposes to shift all four levels upward.
Proposed wage level changes
| Wage level | Current percentile | Proposed percentile |
|---|---|---|
| Level I | ~17th | 34th |
| Level II | ~34th | 52nd |
| Level III | ~50th | 70th |
| Level IV | ~67th | 88th |
DOL projects the change would apply only to new Prevailing Wage Determinations pending on the effective date and to LCAs filed after that date — existing certifications wouldn't be reopened.
Who and what this covers
- H-1B specialty occupation LCAs
- H-1B1 (Chile/Singapore) LCAs
- E-3 (Australia) LCAs
- PERM prevailing wage determinations for EB-2 and EB-3 green card sponsorship
DOL applied the same methodology across all four programs specifically to prevent "program shopping," where employers might otherwise favor whichever program currently has the lowest wage floor.
Step-by-step: what employers and applicants should do now
- Track the comment period. DOL accepted public comments for 60 days after Federal Register publication under Docket No. ETA-2026-0001 — check regulations.gov for the current status before assuming the rule is final.
- Model the cost impact. DOL's own estimate is roughly $6.56 billion in additional wage transfers to workers nationally and about $14,000 more per position on average — budget accordingly if you sponsor H-1B or PERM cases regularly.
- File pending PWDs and LCAs under current rules if possible, since the new methodology would apply prospectively to filings after the effective date, not retroactively.
- Watch for the final rule. NPRMs can change substantially between proposal and final publication — don't assume the exact percentiles above will be the ones that take effect.
- Consult an immigration or employment attorney if you're planning H-1B or PERM filings in the months around any eventual effective date, since timing relative to the rule change could materially affect your wage obligation.
FAQ
Is this rule already in effect? No. As of the NPRM's March 2026 publication, it's a proposed rule in a public comment period, not a final regulation. Immigration policy proposals can also face legal challenges before or after finalization.
Would this affect my current, already-certified LCA or PWD? No, according to the NPRM, the new methodology would apply only to Prevailing Wage Determinations pending on the effective date and new LCAs filed after that date — not to certifications already issued.
Why is DOL doing this now? DOL cites Presidential Proclamation 10973 (September 2025), which directed the agency to reform wage levels to reduce program misuse, along with its own analysis showing wage gaps and a concentration of H-1B filings at the lowest wage levels.
Which visa categories does this proposal touch? H-1B, H-1B1, E-3, and PERM (which supports EB-2 and EB-3 green cards) — all four use the same DOL prevailing wage methodology.
Sources: DOL Notice of Proposed Rulemaking, Docket No. ETA-2026-0001 (Federal Register, March 2026); Erickson Immigration Group analysis.
By Pinal Dave Last updated: 2026-08-03