United States: DOL Proposal to Revise Wage Rules in the H-1B and PERM Programs Is Sent to OMB for Review
December 19, 2025
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At a glance
- A Department of Labor proposed rule that would revise wage rules for the H-1B nonimmigrant and the PERM labor certification programs has been submitted to the Office of Management and Budget (OMB) for review – the first step in the federal rulemaking process.
- Though the exact content of the proposed rule is not yet known, it could increase prevailing wages for these programs, thereby increasing the minimum required wage to be paid to H-1B workers and to be offered in the employment-based permanent residence context.
- When the draft proposal clears federal review, it will be published in the Federal Register for public feedback. The rule will not take effect unless and until it passes through the OMB rulemaking process.
The issue
The Department of Labor (DOL) is seeking federal review of a proposed rule that would revise wage rules in the H-1B nonimmigrant and PERM labor certification programs. Though details are confidential until publication in the Federal Register, the proposed rule could restructure the prevailing wage system for these 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. The final rule was challenged in court and after the change in presidential administration, abandoned by the Biden-era DOL. The Biden-era DOL 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 yet known whether the proposal now under review is the same as the rule finalized by the first Trump Administration in 2021.
What’s next for the proposal
The DOL’s proposal is now undergoing review at the Office of Management and Budget (OMB). When the proposal clears OMB review, it will be published in the Federal Register for public feedback during a period that typically lasts 30 or 60 days. DOL is required to give meaningful review to public comments, though there is no minimum or maximum period for this stage of review.
After the text of the rule is finalized, it will be published in the Federal Register with an implementation date, 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.
