3-27-2026
The Department of Labor (DOL) published a
Notice of Proposed Rulemaking (NPRM) on March 27, 2026, proposing to raise the prevailing wage floors that U.S. employers must pay when sponsoring foreign workers programs.
The Core Change
through the H-1B, H-1B1, E-3, and PERM
The proposal would increase the wage thresholds under the DOL’s Occupational Employment and Wage Statistics (OEWS) system, which is used to determine prevailing wages for both temporary visa programs (H-1B, H-1B1, and EB-3), and permanent labor certification (PERM for the employment-based second (EB-2) and employment-based third (EB-3) preference categories.
Data:
Current and Proposed Wage Levels
Entry-level (Level 1) wages would increase from the 17th to the 34th percentile, with Level II increasing from 34th to from 67th to 88th.
Level III from 50th to 70th, and Level IV
| Wage Level | Current | Proposed |
|---|---|---|
| Level 1 | 17th percentile | 34th percentile |
| Level 2 | 34th percentile | 52nd percentile |
| Level 3 | 50th percentile | 70th percentile |
| Level 4 | 67th percentile | 88th percentile |
According to DOL, the proposed rule, on average, would increase the required wage employers must pay for an H-1B visa holder Level III and 22% at Level IV.
by 33% at Level I, 24% at Level II, 21% at
Proposed rule’s percentage wage increase compared to current regulation
Wage Level Proposed
| Level 1 | 33.39% |
|---|---|
| Level 2 | 24.47% |
| Level 3 | 20.79% |
| Level 4 | 21.68% |
Who is Impacted
The rule would apply prospectively only to and prevailing wage determination requests affecting not just first time H-1B, H-1B1 and
Labor Condition Application (LCA) filings submitted on or after the effective date, E-3 visa holders, but also requests for extensions, amendments and change of employers.
Employers sponsoring individuals for H-1B petitions would need to meet the higher wage levels set per level, depending upon the position. These levels would not apply to employers using Collective Bargaining Agreements (CBA’s). The proposed rule preserves the option to use private wage surveys as an alternative to the OEWS-based prevailing wages; however, DOL explicitly flagged in the rule that it will be watching their use more carefully, so employers relying on going forward.
Legal Background
This is not the first time DOL has attempted first Trump administration, DOL attempted Final Rule, but federal courts vacated it on
them should expect heightened scrutiny
to raise prevailing wage levels. Under the
increases in an October 2020 Interim
grounds (i.e. the interim final rule lacked notice-and-comment). A January 2021 Final Rule was later vacated at DOL's own request following the induction of the Biden administration. Given this contentious history coupled with the significant likely to face court challenges.
What Happens Next
It is important to note that this rule is not yet
impact of these changes, a final rule is
final, and instead is still in the proposed stage of the process. The Department of Labor will accept comments from the public for 60 days, until May 26, 2026. Following the comment period, the agency must review all comments and incorporate public feedback into a final rule, a process which typically takes at least a few months. Then the agency must release a final rule in the Federal Register, with the effective date of a new rule typically being 60 days after the final rule is published in the Federal Register. Policy likely be published and to take effect in time lottery season (Spring 2027).
What you can do
experts anticipate that the final rule will for implementation for next year’s H-1B
Submit a comment discussing how you or your institutions would be impacted by this proposed rule. The comment period presents a meaningful opportunity to provide input on the impact of the proposed rule on U.S. employers sponsoring foreign workers, including colleges and universities. All are allowed to comment, without regard to citizenship.
Educational Position Samples (ACWIA)
15-1244- Network Administrator
Current Level 1: $67,579 Level 2: $95,618 Level 3: $123,677 Level 4: $151,715
Revised Estimate Level 1: $90,144 Level 2: $119,016 Level 3: $149,389 Level 4:$184,606
25-1062 – Ethnic Studies Teacher Postsecondary
Current Level 1: $48,080 Level 2: $68,323 Level 3: $88,567 Level 4: $108,810
Revised Estimate Level 1: $64,134 Level 2: $85,042 Level 3: $106,980 Level 4:$132,400
19-1029.02 – Molecular & Cellular Biologists
Current Level 1: $38,834 Level 2: $50,274 Level 3: $61,734 Level 4: $73,174
Revised Estimate Level 1: $51,801 Level 2: $62,576 Level 3: $74,569 Level 4: $89,038