The Department of Labor (DOL) has proposed a significant overhaul of the wage floors that US employers must meet when hiring H-1B, H-1B1, E-3, and PERM-sponsored workers. Published in the Federal Register on March 27, 2026, the proposed rule would revise how "prevailing wages" — the minimum salaries employers must offer to obtain labor certification — are calculated across all four tiers of the existing wage structure.

Key Points

  • What: DOL proposes to raise prevailing wage levels for H-1B, H-1B1, E-3, and PERM (EB-2/EB-3) programs by revising how wages are calculated from the BLS OEWS survey
  • Who: US employers sponsoring H-1B, H-1B1, E-3, or PERM workers; H-1B and green card applicants whose job offers depend on labor certification
  • When: Comment period closes May 26, 2026; no final rule effective date set yet
  • Impact: Employers may need to offer higher salaries to obtain labor certification, potentially raising costs and affecting hiring decisions

What's Changing and Why

Right now, DOL uses a four-tier wage system based on data from the Bureau of Labor Statistics' Occupational Employment and Wage Statistics (OEWS) survey. Each tier reflects a different experience and education level — Level I is entry-level, Level IV is the most senior.

DOL's concern: the current wage levels don't accurately reflect what US workers in similar roles actually earn, creating a loophole that lets employers hire foreign workers at below-market rates. The proposed rule would revise the formulas used to compute each wage tier so they better align with real-world US worker salaries.

The stated goals are to:

  • Close the wage gap between what visa workers are paid and what similarly employed US workers earn
  • Reduce displacement of US workers by making it less financially attractive to replace them with lower-paid foreign labor
  • Strengthen program integrity across both temporary (H-1B, H-1B1, E-3) and permanent (EB-2, EB-3 via PERM) programs

Who This Affects Most

The scale here is significant. In FY 2024, DOL certified over 502,000 H-1B applications alone. Nearly 58% of PERM applications were filed on behalf of workers already on H-1B status — meaning a wage hike in one program ripples directly into the other.

Of all H-1B Labor Condition Applications (LCAs) certified in FY 2024:

  • 19% were at wage Level I (entry-level)
  • 44% were at Level II
  • 21% at Level III
  • 16% at Level IV

Workers at the lower wage tiers — especially Level I and II — would be most impacted if those floors are raised. Employers who rely on entry-level H-1B placements could face substantially higher payroll obligations.

This Is Still a Proposal

This is a Notice of Proposed Rulemaking (NPRM) — meaning the rule is not final. DOL is required to collect public comments before issuing a final rule, and the final version could look different based on that feedback. There is no effective date yet.

What You Should Do

If you're an H-1B worker: No action needed now, but watch this closely. If finalized, your employer's cost to sponsor you could increase — which may affect renewal and new sponsorship decisions.

If you're an employer sponsoring H-1B or PERM workers: Review the proposed rule at regulations.gov (docket ETA-2026-0001). If the higher wage floors would affect your hiring or compliance costs, submit a comment by May 26, 2026. This is your opportunity to put your concerns on the record before the rule is finalized.

If you're an F-1 student planning to pursue H-1B sponsorship: The proposed rule could affect whether employers are willing to sponsor entry-level roles. Monitor developments after the comment period closes.