DOL to Increase Prevailing Wage Levels

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.