United States: DOL Proposal to Revise Wage Rules for Foreign Workers Reenters Federal Review
March 25, 2026
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At a glance
- The Department of Labor has sent a new proposal to revise wage rules for the H-1B, PERM, and other programs to the Office of Management and Budget (OMB) for review. The new proposal follows an earlier version that cleared OMB review in February and was anticipated for publication but has apparently been revised.
- Once the new proposal clears review, it is expected to be published with a public comment period of 30 or 60 days.
The issue
The Department of Labor (DOL) has resubmitted to the Office of Management and Budget a proposal that would revise wage rules for the H-1B, PERM, and related immigration programs. An earlier version of the rule cleared federal review in February and was expected to be published for public feedback imminently; it appears that DOL has since revised its proposal and restarted the review process.
Though details are confidential until publication in the Federal Register, the proposed rule could restructure the prevailing wage system for the H-1B, H-1B1, E-3, and PERM programs, imposing higher wage minimums.
During the first Trump Administration in 2021, DOL finalized a regulation that would have restructured the agency’s four-level prevailing wage system, increasing the minimum required wages at all wage levels. That rule was challenged in court and, after the change in presidential administration, was ultimately abandoned by the Biden-era DOL. The Biden Administration planned to issue its own prevailing wage proposed rule, but after several delays, the agency deprioritized and then removed the initiative from its regulatory agenda.
It is not known whether the new proposal now at OMB is the same as the rule finalized by the first Trump Administration in 2021. That rule would have increased Level I wages to the 35th percentile of each wage distribution, up from the 17th percentile; Level II wages to the 53rd percentile, up from the 34th percentile; Level III to the 72nd percentile, up from the 50th percentile; and Level IV to the 90th percentile, up from the 67th percentile.
What’s next
When the new proposed rule clears federal review, it will be published in the Federal Register with a public comment period of 30 or 60 days. DOL is required to give meaningful consideration to the public comments, but there is no minimum or maximum period for this stage of review. The agency would then publish a final version of the rule with an implementation period, which typically falls 30 or 60 days after publication.
Comments from the business community will be important to make the Administration aware of the rule’s impact on the position of the United States in the competition for global talent. If your organization wishes to comment on the proposed rule after it is published, please contact your designated Fragomen professional or the firm’s Government Strategies and Compliance Group.
This alert is for informational purposes only. If you have any questions, please contact the immigration professional with whom you work at Fragomen.
