DOL proposes rule to change prevailing wages

On March 27, 2026, the U.S. Department of Labor (DOL) issued a proposed rule to increase prevailing wage levels applicable to H-1B and PERM programs. DOL proposes to revise how prevailing wages are calculated to raise the required minimum wages to be offered in both the H-1B and PERM processes. The main proposal is to raise the Level 1-4 wages from the 17th, 34th, 50th, and 67th percentiles, to the 34th, 52nd, 70th, and 88th percentiles, with an alternate proposal to calibrate prevailing wage levels based on years of experience of the employee.

Notably, in October 2020 DOL issued an interim final rule (IFR) without advance notice that would have increased Level 1-4 wages at even higher levels, to the 45th, 62nd, 78th, and 95th percentiles. This IFR was challenged in litigation and ultimately withdrawn.

The new proposed rule would not eliminate the ability of employers to use alternate private wage surveys meeting current DOL standards. However, eliminating the current entry-level wage classification and requiring entry-level workers to be offered the equivalent to current Level 2 wages is likely to make H1B and PERM sponsorship difficult for some H-1B employers who previously relied upon the DOL’s Level 1 wages for entry level hires.