• Insights

United States: DOL Proposes Rule to Increase PERM and H-1B Wage Minimums

March 26, 2026

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  • United StatesUnited States

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At a glance

  • The proposed regulation would restructure the prevailing wage system for the H-1B, E-3, H-1B1, and PERM programs to increase prevailing wages.
  • Level I (entry-level) wages for H-1B and PERM cases, for example, would increase from the 17th percentile of wages for the occupation and geographic location to the 34th percentile – which is the current wage minimum for Level II. 
  • DOL will accept public feedback on the proposal for 60 days after the rule is formally published on March 27.
  • The proposed revised prevailing wage system would not take effect until the regulation cleared the federal rulemaking process and was finalized, which typically takes several months. Court challenges to a final rule are possible.

The issue

The Department of Labor (DOL) is seeking to increase wages for H-1B, E-3, and H-1B1 nonimmigrant cases and the PERM labor certification program through revision of the prevailing wage system, according to a notice of proposed rulemaking that will be published in the Federal Register tomorrow.

The proposed rule resurrects a similar initiative from the first Trump Administration to increase prevailing wages, which was challenged in court and ultimately abandoned by the Biden Administration.

The new proposed rule seeking to raise prevailing wages comes in the wake of other recent efforts by the Trump Administration to favor higher wages and increase costs associated with employing H-1B workers, including the imposition of a new $100,000 fee for certain H-1B petitions and the new weighted selection process for the annual H-1B cap lottery that favors beneficiaries with the highest wages according to DOL’s four-level prevailing wage system.

DOL will accept public feedback on the proposal for 60 days after publication. The proposal will not become final until the regulation clears the federal rulemaking process.

A closer look

The Department of Labor uses Occupational Employment and Wage Statistics (OEWS) data from the Bureau of Labor Statistics (BLS) to determine prevailing wages in a wide array of occupations. The prevailing wage rate is defined as the average wage paid to similarly employed workers in a specific occupation in the geographic area of intended employment. The OEWS prevailing wage is subdivided into four tiers or wage levels, representing the range of skills from entry level to experienced.

Under the new rule, OEWS prevailing wage minimums will increase significantly for foreign workers at all four levels of skill and experience. For example, under current rules, the Skill Level I (entry level) wage minimum is set at the 17th percentile of the average wage for the occupation. When the new regulation takes effect, the entry-level minimum will increase to the 34th percentile, which is currently the minimum salary for Skill Level II.

The following chart illustrates how the four OEWS wage levels would change under the proposal:

DOL Prevailing Wage Levels: Current and New

Skill Level Current Percentiles Proposed Rule Percentiles
Level I 17 34
Level II 34 52
Level III 50 70
Level IV 67 88

The proposed revised percentiles are nearly identical to the percentiles proposed in the final wage rule issued at the end of the first Trump Administration, which was challenged in court and ultimately never took effect.

Although the proposed regulation would significantly raise the required minimum wages for H-1B, H-1B1, and E-3 labor condition applications (LCAs) and PERM applications that rely on the government’s OEWS salary survey data, the proposed rule would continue to permit employers to use alternative wage sources, which are not subject to the DOL wage percentiles.

The new required wage levels would apply only to applications for prevailing wage determinations that are pending on the date the regulation would take effect, and to new prevailing wage requests and LCAs filed on or after the effective date of the regulation. The new percentiles would not apply to any previously issued or approved prevailing wage determinations, PERMs, or LCAs.

In the preamble to the proposed rule, DOL noted that it considered delaying implementation of the new higher wage minimums by two years but opted not to do so, since the rule would be applied only prospectively to new LCAs and PERM applications and not to existing certifications or (in the words of DOL) “renewals.” As LCAs, PERMs, and prevailing wage determinations are not renewable, it is not clear what this reference to renewals relates to. Nevertheless, it would appear that H-1B, H-1B1, and E-3 extensions would be subject to the new rule, if the LCA on which the filing is based is filed on or after the effective date of the regulation.

What’s next for the proposed regulation

DOL will accept public feedback on the regulation for 60 days after the proposal is published in the Federal Register. Once the comment period closes, DOL must consider the feedback; though there is no deadline for this review, the agency usually considers feedback for at least a period equal or similar to the public comment period, though a shorter consideration period is possible. Once the review is completed, the regulation would be finalized and published in the Federal Register with an effective date that is typically 30 to 60 days after publication. If the rule is finalized, legal challenges are possible.

Feedback from the business community will be crucial to inform the government of the rule’s impact on the position of the United States in the competition for global talent. If your organization is interested in submitting a comment, please contact your 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.

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