DOL Proposes Rule to Increase H-1B and PERM Wage Levels

By: Deepika Singh

The U.S. Department of Labor (DOL) has proposed a rule that would increase prevailing wage minimums for H-1B, H-1B1, E-3, and PERM cases that rely on the government’s Occupational Employment and Wage Statistics (OEWS) data. The proposal was published in the Federal Register on March 27, 2026, with a public comment period open through May 26, 2026. As this is only a proposed rule, there are no immediate changes at this time.

Proposed Changes
DOL is proposing to increase the wage percentiles used for the four prevailing wage levels as follows:

• Level I: from the 17th percentile to the 34th percentile
• Level II: from the 34th percentile to the 52nd percentile
• Level III: from the 50th percentile to the 70th percentile
• Level IV: from the 67th percentile to the 88th percentile

Entry-level wages would see the most significant impact, as Level I would effectively align closer to the current Level II range. This change would likely increase labor costs for employers filing new H-1B or PERM cases that rely on OEWS wage data.

Who Is Affected
The proposal impacts employers and foreign nationals involved in:

• H-1B specialty occupation petitions
• H-1B1 petitions for Chilean and Singaporean nationals
• E-3 petitions for Australian nationals
• PERM labor certification filings

This would primarily affect employers planning new filings, extensions, or green card sponsorship steps that require a new prevailing wage determination or Labor Condition Application (LCA).

The proposed rule indicates that the revised wage levels would apply prospectively to pending prevailing wage requests, as well as to new prevailing wage requests and LCAs filed on or after the effective date of a final rule. Previously issued or approved prevailing wage determinations, LCAs, and PERM applications would not be reopened.

For questions or assistance, please contact your Chugh LLP immigration professional.