The Department of Labor (DOL) has announced a proposed rule that would significantly increase the prevailing wage levels for H-1B, H-1B1, E-3, and PERM workers. Under the new proposal published on March 27, 2026, wage thresholds would shift from the current 17th, 34th, 50th, and 67th percentiles to the 34th, 52nd, 70th, and 88th percentiles, respectively. For entry-level (Level I) positions, this represents an approximate 33.4% increase in the required minimum wage. The DOL asserts that the current wage system fails to meet legal standards and lags behind broader market trends, allowing some employers to undercut U.S. workers. The proposed rule is currently in a 60-day public comment period ending May 26, 2026. If finalized, these changes will profoundly impact how employers budget for and sponsor foreign talent, adding an estimated average increase of $14,000 per year per affected position. Employers are encouraged to review their current labor condition applications and assess the potential financial impact of these impending wage hikes.
DOL Proposes Major H-1B Prevailing Wage Increases for 2026
The Department of Labor proposed a rule to significantly raise prevailing wage levels for H-1B, H-1B1, E-3, and PERM workers, shifting the entry-level wage threshold from the 17th to the 34th percentile.
What This Means for You:
- Key Point 1: Prevailing wage minimums for H-1B and PERM workers will increase significantly across all four wage levels.
- Who Should Be Concerned: U.S. employers sponsoring foreign nationals for H-1B, H-1B1, E-3, or employment-based green cards, as well as the sponsored employees.
- Timeline for Action: The 60-day public comment period closes on May 26, 2026. Changes will apply to new filings once the rule is finalized.
- Next Steps: Employers should audit their current LCA portfolio, model their wage exposure for upcoming renewals, and consult with an immigration attorney to plan for increased sponsorship costs.
Source: Federalregister.gov