A Major Shift in How H-1B and PERM Wages Are Set
If you work in the United States on an H-1B visa, or if your employer is sponsoring you for a green card through the PERM process, there is a significant federal rule change under consideration that could directly affect your job, your salary, and your immigration future. The Department of Labor (DOL) published a Notice of Proposed Rulemaking (NPRM) on March 27, 2026, proposing to substantially increase the prevailing wage floors for the H-1B, H-1B1, E-3, and PERM employment-based immigration programs.
This is not a minor adjustment. The proposed changes would raise minimum wage requirements by an average of approximately $14,000 per worker per year — and in some cases, much more. For the millions of foreign-born professionals in the United States who rely on employer-sponsored immigration pathways, this rule could reshape the landscape of employment-based immigration in 2026 and beyond.
The American Immigration Lawyers Association (AILA) and the American Immigration Council submitted a joint comment opposing the proposed rule on May 21, 2026, arguing that it fails to offer an accurate assessment of the current prevailing wage methodology and does not consider less burdensome alternatives to achieve its stated objectives. Here is what you need to understand about this proposal.
What Is the Prevailing Wage — and Why Does It Matter?
The prevailing wage is the minimum salary that a U.S. employer must pay a foreign worker in a given occupation and geographic location. These minimums exist to protect both foreign workers and American workers: they ensure that employers cannot bring in workers from abroad and pay them below-market wages, which could undercut the wages and working conditions of similarly qualified U.S. employees in the same field.
For H-1B nonimmigrant workers, employers must file a Labor Condition Application (LCA) with the DOL certifying that they are paying at least the prevailing wage for the position. For PERM labor certifications — the first step in the EB-2 and EB-3 employment-based green card process — employers must demonstrate that no qualified U.S. worker is available at or above the prevailing wage.
Currently, the DOL uses a four-tier wage structure based on data from the Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) survey. Each level corresponds to a different point in the wage distribution for a given occupation and location.
What Exactly Is the DOL Proposing to Change?
The proposed rule would raise all four prevailing wage tiers significantly across the board:
- Wage Level I (entry-level): from the 17th percentile up to the 34th percentile
- Wage Level II (qualified): from the 34th percentile up to the 52nd percentile
- Wage Level III (experienced): from the 50th percentile up to the 70th percentile
- Wage Level IV (fully competent): from the 67th percentile up to the 88th percentile
In plain terms, each wage level would increase by approximately 17 to 21 percentile points. The DOL estimates that, on average, wages for sponsored workers would rise by roughly $14,000 per year — though entry-level and mid-level positions in high-cost metropolitan areas could see far larger increases.
Importantly, the rule would apply equally to temporary workers (H-1B, H-1B1, E-3) and to workers in permanent immigration processes (PERM for EB-2 and EB-3 green cards). The revised prevailing wage levels would apply prospectively: to pending prevailing wage determination requests on the effective date, and to all new LCA filings or prevailing wage determination requests filed after the rule takes effect.
What Does This Mean for H-1B Workers and Their Families?
If the rule is finalized in its current form, the most direct impact will be felt by workers in Level I and Level II positions — typically those in the early or middle stages of their careers. For example, a software engineer at the entry level in a major metro area might see their required minimum salary jump by $15,000 to $25,000 or more under the new thresholds.
For H-1B workers, this could mean:
- Employers may need to renegotiate or raise salaries to comply with the new LCA requirements when renewing or transferring an H-1B petition.
- Some employers, especially smaller businesses or startups, may find it cost-prohibitive to sponsor or renew certain H-1B positions.
- Workers who are counting on their employer for H-1B renewal or transfer could face uncertainty if their employer reconsiders the sponsorship due to increased wage costs.
If your H-1B renewal is coming up, speak with a qualified immigration attorney to understand how the proposed rule may affect your specific situation before it takes effect.
What Does This Mean for Green Card Seekers in PERM / EB-2 / EB-3 Cases?
For immigrants pursuing employment-based green cards through the PERM labor certification process, the proposed wage increases create additional considerations. The PERM process requires employers to offer the prevailing wage during the labor market recruitment phase and to list that wage on the ETA Form 9089 (the PERM application itself).
If prevailing wages rise sharply at the time of filing or during recruitment:
- Employers may need to re-evaluate whether the offered salary meets the new minimum and adjust job offers accordingly.
- Higher prevailing wages during the labor market test could make it more likely that a U.S. worker applies and is deemed qualified, potentially complicating the recruitment stage.
- Long-term green card costs for employers increase significantly if they must raise the sponsored worker’s salary to match the new prevailing wage on the I-140 petition and through adjustment of status.
Workers who are in the early stages of PERM sponsorship should work closely with their employers and immigration attorneys to assess the impact of timing their PERM filing before or after any final rule takes effect.
What Happens Next — and What Can You Do?
This rule is still in the proposed stage. The public comment period closed on May 26, 2026. AILA and the American Immigration Council filed a detailed joint comment urging the DOL to reconsider the proposal, citing its flawed wage methodology assessment and the failure to consider less disruptive alternatives that could still protect U.S. workers.
The DOL will now review all submitted comments before deciding whether to finalize the rule, modify it, or withdraw it. There is no fixed deadline for the agency to act, and the final rule could look different from the proposal. However, given the current administration’s stated focus on protecting U.S. worker wages in the context of immigration — including a 2025 Presidential Proclamation directing the DOL to initiate this rulemaking — it is likely that some version of increased prevailing wage requirements will eventually move forward.
Here is what you should do right now:
- H-1B workers with upcoming renewals or transfers: Talk to your employer and an immigration attorney now. If your renewal is coming in the next 6–12 months, timing matters.
- Workers in early PERM stages: Work with your employer to evaluate whether filing your PERM sooner — before a final rule takes effect — may be beneficial for your case.
- Employers sponsoring multiple workers: Review your immigration portfolio and assess which roles may be most affected by the proposed wage increases to prepare budget projections and timeline strategies.
Conclusion
The DOL’s proposed prevailing wage increases represent one of the most significant proposed changes to employment-based immigration in recent years. While the stated goal of protecting both foreign and American workers is important, the magnitude of the proposed wage hikes has raised serious concerns among immigration practitioners and employer groups alike. AILA’s strong opposition to the rule signals that this debate is far from over.
Stay informed, consult a qualified immigration attorney if your visa or green card process could be affected, and monitor developments as the DOL reviews public comments and moves toward a final decision. For the full details and legal guidance on prevailing wage requirements, visit the American Immigration Lawyers Association at aila.org or consult a qualified immigration attorney.
Immigration Fleet Law Firm