H-1B Compliance

DOL Prevailing Wage: What It Is and How It Affects Your H-1B Visa

A guide for H-1B workers and employers on how the Department of Labor sets wage floors, what the four wage levels mean, and what happens when employers pay below the required rate.

Updated July 2026 9 min read For H-1B Workers & Employers
TL;DR — DOL Prevailing Wage for H-1B Employers must pay H-1B workers the prevailing wage for their occupation and location — set by DOL using Bureau of Labor Statistics survey data. Four wage levels (I–IV) determine the floor. Underpayment is an LCA violation with serious consequences including back-pay, debarment, and petition revocation.

What Is Prevailing Wage?

The prevailing wage is the average wage paid to workers performing similar work in a specific occupation in a specific geographic area. For H-1B purposes, it is calculated by the Department of Labor's Office of Foreign Labor Certification (OFLC) using data from the Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) survey.

The prevailing wage is central to the H-1B program because Congress requires every H-1B employer to certify — on pain of perjury — that the sponsored worker will be paid at least the prevailing wage for their role and location. This certification occurs through the Labor Condition Application (Form ETA-9035), which every H-1B employer must file with DOL before submitting Form I-129 (the H-1B petition) to USCIS.

The rule: An employer must pay the H-1B worker the greater of the prevailing wage for the occupation and location, or the actual wage paid to similarly employed U.S. workers at that employer in that location.

Prevailing wage applies to the entire H-1B validity period The LCA wage obligation applies from the first day of H-1B employment and continues for the full approved period. Employers cannot pay below the certified wage level at any point during the H-1B status period, including during slow periods, project gaps, or bench time.

Why DOL Sets It

The prevailing wage requirement is grounded in a congressional mandate under the Immigration and Nationality Act (INA §212(n)). Congress designed the H-1B program with wage protections to prevent employers from using foreign workers to undercut U.S. wages — a concern that has grown alongside the scale of the H-1B program.

Key reasons DOL sets prevailing wages:

DOL is currently engaged in rulemaking that would raise prevailing wage floors across all four wage levels. The 2026 NPRM proposals could increase Level I and Level II floors substantially. See the H-1B employer wage audit guide for employer compliance steps.

The Four Wage Levels

DOL assigns H-1B workers one of four wage levels based on their experience, job duties, and degree of independent judgment. The level must accurately reflect the actual position being filled — misassigning a Level III or IV worker as Level I to reduce the wage floor is an LCA violation.

Level Percentile Description Typical Profile
Level I 0–34th Entry level — performs routine tasks under close supervision Recent graduate, limited relevant experience, structured role
Level II 35–50th Qualified — standard competency, some independent judgment 2–4 years experience, handles moderately complex tasks
Level III 51–75th Experienced — substantial experience, significant independent judgment Senior contributor, leads projects, mentors junior staff
Level IV 76th+ Fully competent — expert level, broad authority and responsibility Principal, staff engineer, manager; recognized specialist

The employer must pay the higher of: the prevailing wage for the assigned level, or the actual wage paid to similarly employed U.S. workers at the same employer and location. In practice, for most employers, the prevailing wage is the binding floor.

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How Employers Submit an LCA

Before filing Form I-129 with USCIS, every H-1B employer must file a Labor Condition Application (Form ETA-9035) with DOL through the Foreign Labor Application Gateway (FLAG) system at flag.dol.gov.

The four LCA attestations every employer makes:

  1. The H-1B worker will be paid at least the prevailing wage and the actual wage paid to U.S. workers in similar roles at the same location.
  2. The employment of the H-1B worker will not adversely affect the working conditions of U.S. workers similarly employed.
  3. There is no strike, lockout, or work stoppage in the named occupation at the workplace.
  4. Notice of the LCA filing has been given to the bargaining representative of U.S. workers (if applicable) or posted at the worksite.

LCA Filing Timeline

For a step-by-step employer guide, see the H-1B employer sponsorship guide and the H-1B prevailing wage audit guide for HR teams.

What Happens If the Employer Pays Below Prevailing Wage

Underpaying H-1B workers is a serious federal violation Paying below the certified LCA wage level is a violation of the employer's attestation to the Department of Labor under penalty of perjury. The consequences can include back-pay, civil penalties, debarment, and H-1B petition revocation.

When DOL's Wage and Hour Division (WHD) investigates an H-1B wage complaint — either initiated by the worker or discovered during a routine audit — the following consequences can apply:

Bench time and project gaps do not waive the wage obligation H-1B workers must be paid the LCA wage during any authorized workday — including periods between projects ("benching"). Failure to pay during bench periods is a common LCA violation. The only exception is when an H-1B worker takes bona fide, employee-initiated leave.

How to Look Up Your Prevailing Wage

Both workers and employers can look up prevailing wage data using DOL's public tools. Here is the step-by-step process:

  1. Identify your SOC code. The Standard Occupational Classification (SOC) code defines your occupation category. You can search BLS O*NET (onetonline.org) by job title to find the appropriate SOC code. Alternatively, your employer's immigration attorney will identify the SOC code on your LCA.
  2. Go to DOL OFLC Wage Search. Visit flcds.workforcegpd.gov — DOL's official wage data lookup tool. This is the same database employers use when filing LCAs.
  3. Select your work location. Choose your state and then your metropolitan statistical area (MSA) or county. The prevailing wage varies by geography — the same SOC code will have different levels in San Jose vs. Houston.
  4. Enter your SOC code. The tool will display the current OEWS-based prevailing wage for all four wage levels for that occupation in that geography.
  5. Compare to your salary. Identify which wage level your position corresponds to (see the table above) and verify your annual salary meets or exceeds that level's prevailing wage. Remember: your employer must pay the higher of the prevailing wage or the actual wage paid to similar U.S. workers.

You can also search H-1B employer data by company name using our proprietary employer database — which includes LCA wage data by employer and occupation across multiple years.

Frequently Asked Questions

What is DOL prevailing wage?
The DOL prevailing wage is the average wage paid to workers in a specific occupation in a geographic area, as determined by the Department of Labor's Office of Foreign Labor Certification (OFLC) using Bureau of Labor Statistics OEWS survey data. H-1B employers must pay their workers at least the prevailing wage for the relevant occupation and location, or the actual wage paid to similarly employed US workers at that employer — whichever is higher.
How is prevailing wage determined?
DOL uses Occupational Employment and Wage Statistics (OEWS) survey data collected by the Bureau of Labor Statistics. The data is organized by Standard Occupational Classification (SOC) code and geographic area (typically metropolitan statistical area or state). Wages are broken into four levels based on percentile rankings within each SOC code and geography. Employers access prevailing wage data through the DOL OFLC Foreign Labor Application Gateway (FLAG) when filing a Labor Condition Application (LCA).
What are the 4 wage levels?
Level I (entry level, 0–34th percentile): workers with limited relevant experience performing routine tasks under close supervision. Level II (qualified, 35–50th percentile): workers with some experience who exercise some independent judgment. Level III (experienced, 51–75th percentile): workers with substantial experience who exercise significant independent judgment. Level IV (fully competent, 76th percentile and above): expert-level workers with broad authority and responsibility. Employers must pay at least the prevailing wage for the assigned level, or the actual wage paid to similar US workers, whichever is greater.
Can my employer pay me less than prevailing wage?
No. Paying below the certified LCA wage level is an LCA violation. DOL can require back-pay to the worker, assess civil money penalties up to $10,000+ per violation per 20 CFR Part 655, debar the employer from future H-1B filings for 1–5 years, and refer the case to USCIS for petition revocation — which can void the worker's H-1B status retroactively. H-1B workers can file a wage complaint with the DOL Wage and Hour Division without jeopardizing their status.
Where can I look up prevailing wage for my job?
DOL's OFLC Wage Search at flcds.workforcegpd.gov lets you search by SOC code, job title, and geography. Results show all four wage levels for that occupation and location. The Foreign Labor Application Gateway (FLAG) at flag.dol.gov also provides wage data during the LCA filing process. These are the same data sources employers use when selecting the prevailing wage on your LCA.
What happens if the prevailing wage changes after my LCA is certified?
The LCA remains valid for the period stated on the certification — up to 3 years, or until the H-1B petition period ends, whichever comes first. If DOL publishes updated wage data after your LCA is certified, you are not required to refile during the current certification period. However, if you file a new or amended I-129 (for an extension, transfer, or amendment), the new LCA must use prevailing wage data current at the time of that new filing. Employers should monitor wage data updates each year so they are prepared at renewal time.

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