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DOL Proposes Major Prevailing Wage Increases for H-1B and PERM Visas in 2026

The U.S. Department of Labor has proposed a new rule to significantly increase the prevailing wage minimums for H-1B, E-3, H-1B1, and PERM visa programs to protect American workers.

Title: DOL Proposes Major Prevailing Wage Increases for H-1B and PERM Visas in 2026

Summary: The U.S. Department of Labor (DOL) has issued a proposed rule that would significantly increase the prevailing wage minimums for H-1B, H-1B1, E-3, and PERM visa programs.

On March 26, 2026, the U.S. Department of Labor's Employment and Training Administration published a proposed rule aimed at revising the methodology used to determine prevailing wage levels for certain employment-based visa programs. The new rule would utilize statistically grounded percentile thresholds derived from the Bureau of Labor Statistics' Occupational Employment and Wage Statistics survey.

If implemented, this policy change would effectively raise the wage floor for foreign workers, particularly impacting entry-level positions and recent graduates in STEM fields. For instance, Level 1 entry-level wages could rise significantly from current benchmarks. The DOL stated that this modernization aims to protect the wages and job opportunities of American workers and ensure foreign workers are paid market value.

The proposed rule is currently open for public comment for 60 days following its publication in the Federal Register. While the rule is not yet final, employers relying on H-1B workers or navigating the PERM labor certification process should prepare for potential increases in labor costs. This development highlights the ongoing focus on tightening employment-based immigration policies and prioritizing the domestic workforce.

What This Means for You:

  • Key Point 1: Employers may face significantly higher wage requirements when sponsoring foreign workers for H-1B visas or permanent residency.
  • Who Should Be Concerned: U.S. employers hiring international talent, particularly recent graduates in STEM fields, and current H-1B visa holders seeking extensions or green cards.
  • Timeline for Action: The public comment period is open for 60 days starting March 27, 2026. The rule will not take effect until after the rulemaking process concludes.
  • Next Steps: Employers should review their current and future foreign national workforce compensation against the proposed wage levels and consult with immigration counsel to budget for potential cost increases.
Source: Dol.gov
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