Information checked October 21, 2026. Immigration rules and court orders can change. This article provides general information, not advice about an individual case.
Proposed prevailing wage changes could raise the cost of future H-1B and PERM sponsorship, but a proposal is not an immediate across-the-board pay increase. Employers planning renewals, new hires, and green card cases should examine the position, work location, wage source, and filing timeline rather than assume every case faces the same increase.
What Is DOL Proposing?
The Department of Labor’s March 27, 2026 proposed rule would change how the government calculates four prevailing wage levels using Occupational Employment and Wage Statistics (OEWS) data. It covers H-1B, H-1B1, E-3, and PERM programs. The proposal would place those levels higher in the occupation’s local wage distribution.
This is a change to the wage methodology, not a single nationwide salary requirement. Its dollar impact would vary by occupation, geographic area, and wage level. A percentile is a position in a wage distribution; it is not the percentage raise owed to each worker.
| Wage level | Approximate current percentile | Proposed percentile |
|---|---|---|
| I | 17th | 34th |
| II | 34th | 52nd |
| III | 50th | 70th |
| IV | 67th | 88th |
The final text, effective date, transition provisions, and any court orders must be checked before a filing. A prediction that a rule will arrive before a particular registration season is not an official deadline. Planning for calendar year 2027 also should not be confused with fiscal-year labels used for the H-1B cap.
Would an Existing H-1B Approval Require an Immediate Raise?
The proposal does not seek to reopen previously approved prevailing wage determinations, labor certifications, or LCAs solely to apply the new methodology. Employers must still meet their existing wage obligations. An extension, amendment, or change of employer that requires a new LCA may create a new wage-compliance question, depending on the final rule and any valid existing wage determination.
For H-1B employment, the required wage generally reflects the higher of the applicable prevailing wage or the employer’s actual wage for similarly employed workers. Meeting a government wage figure does not eliminate the need to review the actual-wage obligation. A university or nonprofit should not assume that exemption from the H-1B cap also exempts it from wage rules.
Why Pending PERM Wage Requests Deserve Attention
Under the proposed transition, wage-determination requests pending when the new methodology takes effect, as well as later requests, could receive the new rates. DOL proposes to leave previously approved determinations and labor certifications intact. An issued determination still has a validity period and must be used correctly; it is not permanent protection from future wage changes.
PERM concerns a future permanent job offer. Although the offered wage generally must be paid when the worker begins the permanent position, the employer must commit to a compliant offer and address the financial requirements at the appropriate stages of the immigration process.
Wage Compliance and H-1B Selection Are Different
A separate DHS weighted-selection final rule uses the offered wage’s relationship to OEWS levels when selection is necessary. It assigns one, two, three, or four pool entries at Levels I through IV. More entries do not guarantee selection or approval.
The job’s requirements help determine its appropriate LCA wage level. The offered salary’s relationship to the relevant wage thresholds serves a different purpose in selection. If thresholds rise, the same salary could align with a lower selection level. Employers should not inflate job requirements or enter unsupported salary information to improve their odds.
What Employers Can Review Now
- Map upcoming renewals, amendments, transfers, and PERM cases.
- Confirm job duties, occupational codes, work locations, and required experience.
- Compare salary budgets with current rates and possible higher-rate scenarios.
- Track pending wage requests and the expiration of issued determinations.
- Have immigration counsel confirm the rules in effect before each filing.
Frequently Asked Questions
Are the proposed wage percentiles automatic salary raises?
No. They describe how wage benchmarks would be calculated. The effect depends on the job, location, wage level, and final implementation rules.
Does a higher offered salary guarantee H-1B selection?
No. Weighted selection changes the number of pool entries when selection is needed, but it does not guarantee selection or petition approval.
Should an employer rush a wage request without reviewing the position?
No. Timing matters, but a determination must accurately reflect the real job and be used within its validity period.
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Wilner & O’Reilly can review your documents, timing, and available options. Contact our immigration attorneys to discuss your situation.
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