DOL Proposes Major H-1B Prevailing Wage Overhaul — What You Need to Know

What Just Happened

On March 27, 2026, the U.S. Department of Labor (DOL) published a major Notice of Proposed Rulemaking (NPRM) in the Federal Register — titled "Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States" (Docket No. ETA-2026-0001; RIN 1205-AC30).

The proposed rule would overhaul how prevailing wages are calculated for four immigration programs: H-1B, H-1B1 (Chile/Singapore FTA), E-3 (Australian specialty workers), and PERM (employment-based green cards).

This is the biggest H-1B wage policy change in over 20 years. The existing methodology has been in place since 2005, largely unchanged.

The Core Change: How Prevailing Wages Are Calculated

Current System (Since 2005)

DOL uses Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) survey data and divides wages into four tiers, anchored at these percentiles:

Proposed New System

DOL proposes shifting all four anchors significantly upward — raising the minimum salary floor to the median or above for every single wage level:

Real Dollar Impact

DOL's own analysis puts the average cost increase at approximately $14,000 per year per worker. Depending on the wage level and occupation, salary requirements could rise 21% to 33%.

Some key figures from the NPRM:

• The average wage offered to H-1B workers is currently ~$10,191 below the OEWS average for similarly classified occupations — DOL's primary justification
• DOL analyzed 3+ million LCAs filed from FY2020–2025 and found an average gap of ~$19,000 between actual U.S. wages and what employers were required to pay
• In FY 2024, roughly 63% of certified LCAs were at Level I or Level II — the two levels most affected by this change
• For PERM: 57.6% of PERM applications in FY 2024 were filed for workers already on H-1B status — which is why DOL is extending the changes to the green card process

"The average wage offered to H-1B workers was approximately $10,191 lower than the OEWS average wage for similarly classified occupations."

— DOL NPRM, March 2026 (Docket ETA-2026-0001)

Which Programs Are Affected?

No retroactive application. Previously approved LCAs, prevailing wage determinations, and PERM certifications are not affected. H-1B cap petitions filed for FY2027 (LCAs already filed before the effective date) are unaffected.

Timeline: When Does This Take Effect?

Historical Context

This is not DOL's first attempt. In October 2020, the first Trump administration issued an Interim Final Rule (bypassing notice and comment) that set Level I at ~45th percentile and Level IV at ~95th percentile — far more aggressive than this proposal. Federal courts vacated that rule for procedural violations. The Biden administration abandoned further rulemaking after the vacatur.

This 2026 NPRM is the first formal prevailing wage rulemaking to go through proper notice-and-comment process since then — making it more legally durable than the 2020 rule.

For H-1B Workers: What This Means for You

Your current status is not affected. If you're already on H-1B status with an approved LCA, this proposed rule changes nothing about your current authorization.

Future renewals and transfers: If finalized, the new wage floors would apply to any new LCA filed on or after the effective date — including H-1B extensions and employer transfers.

What to watch for now:

• Whether your employer's offered wage already meets the proposed new floors — check BLS OEWS data at data.bls.gov
• If you're currently at Level I or Level II, ask your employer now whether they're prepared to adjust
• If you're job-searching, factor in that employers may become more selective about H-1B sponsorship at lower wage levels
• This rule does not affect your current petition, I-485, or any pending case

Green card applicants (PERM): If your employer is in the process of filing PERM, ask whether they'll file before the effective date. Cases filed before the effective date use today's prevailing wages.

For Employers: What This Means for You

This is the analysis your legal team should be running now, before the rule is final:

1. 1
   Audit your current H-1B workforce by wage level. Pull all active LCAs and identify which employees are at Level I or II. These are your highest-risk positions.
2. 2
   Model the cost delta. For each LCA-covered employee, estimate the gap between your current offer and the proposed new prevailing wage using BLS OEWS data (34th, 52nd, 70th, and 88th percentiles by SOC code and geography).
3. 3
   Evaluate PERM timing. If you have PERM cases in progress, assess whether accelerating filing before the effective date makes strategic sense.
4. 4
   Consider private wage surveys. The proposed rule preserves existing allowances for private wage surveys meeting DOL standards (20 CFR 656.40(b)(3) and (g)) as alternatives to OEWS-based prevailing wages.
5. 5
   Plan for the wage-weighted lottery. The new wage levels interact with the recently implemented wage-weighted H-1B lottery. Higher base wages under the proposed rule could affect lottery strategy.

This NPRM arrives alongside other recent cost increases: premium processing at $2,965 per petition (as of March 1, 2026), the wage-weighted lottery, and a $100,000 consular processing fee under a presidential proclamation (currently subject to legal challenge). Together, these represent a deliberate policy direction toward higher-wage, higher-skill H-1B workers.

How to Submit a Comment

The 60-day public comment period runs through approximately May 26, 2026. DOL is required to read and respond to substantive comments before issuing a final rule.

1. Go to regulations.gov
2. Search for Docket No. ETA-2026-0001
3. Click "Comment" and submit your written feedback

Comments carry more weight when they include specific data and examples — not just general opposition. Useful elements include actual wage levels in your industry/geography, documentation of workforce impact, and alternative methodologies you'd recommend.

Frequently Asked Questions