On March 27, 2026, the Department of Labor (DOL) released a long-anticipated proposed rule that could significantly reshape prevailing wage requirements for H-1B, PERM, and related programs.
The proposal would revise how prevailing wages are calculated for PERM labor certifications for green card applications and Labor Condition Applications (LCAs) used in H-1B, H-1B1, and E-3 nonimmigrant filings. The rule would raise the minimum wages that must be offered for employers to sponsor H-1B workers and employment-based green cards. It follows years of litigation and regulatory uncertainty stemming from an October 2020 interim final rule (IFR) and subsequent agency actions. While the proposed rule continues DOL’s effort to raise wage levels, some commenters say that it adopts a more moderate approach than the 2020 IFR and note that it is being issued through standard notice-and-comment rulemaking.
The proposed rule would not eliminate the ability of employers to use private wage surveys meeting current DOL standards. For employers who can’t use the Occupational Employment and Wage Statistics (OEWS) wage survey due to incompatibility between their job descriptions and the OEWS wage-leveling system, this continuity will be critical to their H-1B and PERM programs.
DOL said that these changes are intended to better reflect wages paid to similarly employed U.S. workers and reduce the potential for wage undercutting. As a practical matter, however, by eliminating the current entry-level wage classification and requiring entry-level workers to be offered wages currently at Level II in the OEWS wage system, many smaller employers and nonprofit employers could be shut out of the H-1B and PERM system.
The rule would not retroactively affect previously issued prevailing wage determinations, LCAs, or PERM applications. The effective date is not yet set; the DOL will receive comments until May 26, 2026.
