On March 27, 2026, the U.S. Department of Labor (DOL) issued a proposed rule that would increase the prevailing wage levels employers must pay foreign workers under the H 1B, H 1B1, E 3, and Permanent Labor Certification (PERM) programs. The proposed regulation stems from Presidential Proclamation 10973, issued by the Trump Administration on September 19, 2025, which directed the DOL to revise prevailing wage levels under the H 1B program. The Administration stated that employment based visa programs have, in some cases, been used to undercut or displace U.S. workers rather than to supplement the domestic workforce.
If finalized, this rule would represent the most consequential change to prevailing wage methodology in more than two decades. Employers across a wide range of industries, including technology, finance, consulting, engineering, manufacturing, education, and professional services, could face substantial increases in required wages, affecting hiring costs, immigration sponsorship strategies, and long term workforce planning.
Proposed Changes to Wage-Level Methodology
The proposal would significantly revise how prevailing wages are calculated. Currently, wages are set across four levels based on specific occupation and geographic location. The DOL now proposes raising the wage benchmarks at each level, which would result in higher required wages for sponsored roles across all occupations.
|
Wage Level |
Current Percentile |
Proposed Percentile |
| Level I (Entry) | 17th percentile |
34th percentile |
| Level II (Qualified) | 34th percentile |
52nd percentile |
| Level III (Experienced) | 50th percentile |
70th percentile |
|
Level IV (Fully Competent) |
67th percentile |
88th percentile |
Impact on Employers
If finalized, the proposed rule would raise minimum wage requirements for employers sponsoring foreign workers, increasing required wages by an average of about $14,000 per employee per year. Entry level roles would see the largest increase (approximately 33%), while mid to senior level roles would increase by about 21%–25%.
The higher wage requirements would apply to pending prevailing wage requests and to new H 1B, H 1B1, E 3, and PERM filings after the rule takes effect, but would not apply retroactively to already approved cases.
Alternative wage surveys would remain available; however, employers should plan for:
- Higher minimum wage requirements for sponsored roles.
- Increased overall costs for immigration sponsorships.
Smaller employers and those in lower wage regions may feel these impacts more acutely.
Comment Period and Recommended Employer Actions
The DOL is accepting public comments for 60 days after publication in the Federal Register, giving employers and other stakeholders an opportunity to weigh in before the rule is finalized.
Employers may wish to consider the following steps:
- Evaluate exposure by assessing current and anticipated use of H-1B and PERM sponsorship and modeling costs under the proposed wage levels.
- Review workforce planning and compensation strategies, particularly for entry- and mid-level sponsored roles.
- Submit comments addressing operational, economic, or industry-specific impacts of the proposed rule.
- Monitor developments closely, as the final rule may change in response to stakeholder feedback.
We are available to help employers analyze the potential impact of this proposed rule and evaluate immigration and workforce strategies moving forward. Please contact us if you would like tailored guidance for your organization.
If you have any questions, or would like additional information, please contact one of the attorneys on our Immigration team.
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