The Department of Labor published a proposed rule revising prevailing wage calculation data for the H-1B program and related categories. The rule, titled “Improving Wage Protections for H-1B and PERM Employment in the United States,” appeared in the Federal Register following review by the Office of Information and Regulatory Affairs (OIRA).

Affected Programs

The proposed employment wage proposal affects the following programs:

  • H-1B visa.
  • H-1B1 program.
  • E-3 program.
  • Permanent Labor Certification (PERM) program.

What the Rule Would Change

DOL’s proposal would raise the percentile thresholds used to set each of the four prevailing wage tiers, moving the range from roughly the 17th–67th percentile of Bureau of Labor Statistics wage data up to roughly the 34th–88th percentile. DOL estimates the move might increase average certified wages by approximately $14,000 per year, with entry-level roles seeing the largest percentage increases, potentially over 30 percent. The rule preserves employers’ ability to use private wage surveys as an alternative to the standard survey data, though DOL has signaled it intends to scrutinize that use more closely going forward.

The proposed rule only applies to prevailing wage requests and Labor Condition Applications filed on or after its effective date, along with prevailing wage determinations still pending with DOL’s National Processing Center at that time. It would not apply retroactively to previously approved determinations, labor certifications, or LCAs.

Current Status

The rule’s 60-day public comment period closed in late May 2026. DOL must now review comments before issuing a final rule, a process that typically takes several months. Employers with pending or planned H-1B, E-3, or PERM filings should evaluate now whether affected positions can absorb a higher required wage, since the final rule’s effective date and scope could still shift based on comments received.

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