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.
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:
- Protect U.S. workers from wage depression: Without a wage floor, employers could pay H-1B workers below-market rates, making it economically advantageous to hire foreign workers over equally qualified U.S. workers.
- Ensure fair pay for H-1B workers themselves: The statute also protects H-1B employees from being underpaid relative to market rates — a risk given that H-1B workers' immigration status is tied to their employer.
- Enable USCIS adjudication: USCIS cannot approve an H-1B petition without a certified LCA on file. The LCA certification from DOL is a prerequisite, not an optional step.
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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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:
- 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.
- The employment of the H-1B worker will not adversely affect the working conditions of U.S. workers similarly employed.
- There is no strike, lockout, or work stoppage in the named occupation at the workplace.
- 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
- DOL turnaround: Typically 7 business days for a standard LCA (certification or denial). Incomplete or flagged applications may take longer.
- Validity period: Up to 3 years from the date of certification, or the length of the H-1B petition, whichever is shorter.
- Public access file: Employers must maintain a public access file with the certified LCA, prevailing wage documentation, and supporting records — available for public inspection without notice.
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
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:
- Back-pay obligation: DOL can require the employer to pay the worker the full difference between the prevailing wage and the amount actually paid, going back to the first underpaid pay period.
- Civil money penalties: Under 20 CFR Part 655, DOL can assess civil penalties of up to $10,000 per violation or per affected worker, with higher amounts for willful or repeated violations.
- Employer debarment: DOL can debar the employer from filing new H-1B, H-1B1, or E-3 petitions for 1–5 years. Debarred employers appear on DOL's public debarment list.
- USCIS petition revocation referral: DOL can refer findings to USCIS for revocation of the underlying H-1B petition, which can void the worker's H-1B status retroactively.
- Worker's rights: H-1B workers can file a wage complaint with the DOL Wage and Hour Division (WHD) without jeopardizing their H-1B status. The statute includes anti-retaliation protections for workers who file complaints.
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:
- 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.
- 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.
- 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.
- 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.
- 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?
How is prevailing wage determined?
What are the 4 wage levels?
Can my employer pay me less than prevailing wage?
Where can I look up prevailing wage for my job?
What happens if the prevailing wage changes after my LCA is certified?
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