On March 27, 2026, the U.S. Department of Labor (DOL) proposed a new rule to increase prevailing wage levels. If finalized, the rule would increase prevailing wage requirements for employers sponsoring foreign nationals under the H‑1B, H‑1B1, E‑3, and PERM (EB‑2 and EB‑3) programs.
Current Prevailing Wage Structure
For more than two decades, DOL has relied on the Occupational Employment and Wage Statistics (OEWS) survey to assign four prevailing wage levels based on percentiles of the wage distribution:
- Level I (Entry Level): 17th percentile
- Level II (Qualified): 34th percentile
- Level III (Experienced): 50th percentile
- Level IV (Fully Competent): 67th percentile
These wage levels are used uniformly for temporary programs, like the H-1B and permanent programs, like EB-2 and EB-3 category Green Cards.
Proposed Wage Level Changes
Under the new rule, DOL would substantially raise each wage tier:
Wage Level | Current |
| Proposed |
Level I | 17th | → | 34th |
Level II | 34th | → | 52nd |
Level III | 50th | → | 70th |
Level IV | 67th | → | 88th |
Notably, entry-level wages would double, moving to the current Level II floor.
DOL estimates these changes would increase average required wages by approximately $14,000 annually, depending on occupation and location.
When Would the New Wages Take Effect?
DOL will accept comments on the rule from the public until May 26, 2026.
If finalized, the new wage methodology would take effect no earlier than 60 days after the final rule is published. Until then, current wage levels remain in effect.