DOL Proposes Significant Increases to Prevailing Wage Levels for H-1B and PERM Programs

On March 27, 2026, the U.S. Department of Labor (DOL) proposed a rule that will restructure the prevailing wage levels for H-1B, H-1B1, E-3, and PERM programs by raising the percentile ranges for Levels 1 through 4 of the OEWS wage system as follows:

• Level I (Entry) Prevailing Wage: 17th percentile to 34th percentile
• Level II (Qualified) Prevailing Wage: 34th percentile to 52nd percentile
• Level III (Experienced) Prevailing Wage: 50th percentile to 70th percentile
• Level IV (Fully Competent) Prevailing Wage: 67th percentile to 88th percentile 

Impact of the Percentile Changes

The increases will raise the required wage for impacted foreign national employees of all levels. In practical terms, entry-level wages would move to what is currently considered level 2 compensation, and so on, with corresponding increases at all four tiers, which effectively pushes up the required salary up by one full level.

However, the proposed rule does not eliminate the use of private wage surveys (e.g., Radford McLagan Compensation Database), which may provide important flexibility for employers.

Effective Date

The rule is moving through the standard Notice of Proposed Rulemaking (NPRM), requiring a public comment period before finalization, meaning effective date will likely be no sooner than June 2026.

The proposed rule will not apply retroactively, but the new percentiles will apply to LCAs and Prevailing Wage Requests pending with the DOL on the (to be determined) effective date.

Impact for Employers

Because the proposed rule will not impact LCAs certified prior to the rule’s effective date, H-1B cap petitions for FY 2027, which must be filed by June 30, 2026, should not be impacted, assuming LCAs for those petitions are certified before June 2026 (Immigration Law Group expects to file LCAs for cap petition by the end of April).

Due to the fact PERM prevailing wage requests is taking DOL approximately six months to process, it is too late to submit new requests with the hope of getting a determination based on the existing wage system.  In fact, PERM prevailing wage requests submitted December 2025 or after are likely to be subject to the new prevailing wage system.

Recommended Action for Employers

• To the extent possible, certify LCAs for H-1B extensions, transfers, amendments by the end of May.
• Consider subscribing to private wage surveys (e.g., Radford survey).
• Consider alternative visas when necessary (e.g., L-1, TN and O-1).

If you have any questions, please contact your ILG attorney or reach our firm at .