DOL Proposes Major Prevailing Wage Increase for H‑1B, H‑1B1, E‑3 and PERM
Key Takeaways
- It has been reported that the U.S. Department of Labor (DOL) will publish an NPRM to raise prevailing wage percentiles used for H‑1B, H‑1B1, E‑3 and PERM.
- Proposed percentile shifts: Level I ~17th→~34th, Level II ~34th→~52nd, Level III ~50th→~70th, Level IV ~67th→~88th.
- DOL estimates an average increase of roughly $14,000 per certified position; the rule would apply prospectively if finalized.
- The public will have a 60‑day comment period after publication; employers and practitioners should review determinations and consider submitting comments.
What the DOL is proposing
It has been reported that the DOL’s Notice of Proposed Rulemaking titled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States” would substantially raise the four tier prevailing wages that govern H‑1B (specialty occupations), H‑1B1 (Chile/Singapore), E‑3 (Australia) and PERM labor certification (the DOL step for EB‑2/EB‑3 immigrant petitions). The agency says the new percentiles were chosen by a statistical model to bring the average prevailing wage closer to the average actual wages paid to comparable U.S. workers; DOL estimates the change would raise the average certified wage by about $14,000 per year per position. OEWS refers to the Occupational Employment and Wage Statistics survey that underpins these percentiles.
Who is affected and why it matters
The change affects employers who sponsor foreign nationals under these nonimmigrant and permanent programs and the applicants they sponsor. Higher prevailing wages mean employers must offer and certify higher salaries to obtain PERM approvals or to satisfy wage attestations used in H‑1B filings. For workers, that can mean higher pay when certified — but it could also reduce hiring if employers scale back requests, delay recruitment, or shift work offshore to control labor costs. DOL says the revision is intended to better protect U.S. workers by reducing incentives to hire foreign workers at wages below those paid to Americans.
Next steps and what employers and applicants should do
The NPRM will open a 60‑day public comment period once published; it is not a final rule and would apply prospectively if finalized. Employers should immediately review current prevailing wage determinations and compensation planning for pending and anticipated filings. Consider submitting comments through the DOL docket (ETA‑2026‑0001) if you believe the proposed methodology is flawed or economically harmful. Consult immigration counsel about strategy — including wage level selection, timing of filings, and budgeting for higher certified wages — because these adjustments could materially change the cost and feasibility of many PERM and H‑1B cases.
Source: Original Article