DOL Releases Long-Anticipated Prevailing Wage Proposed Rule
- Mar 31
- 2 min read
The U.S. Department of Labor released a long-anticipated proposed rule on March 27, 2026, that could significantly reshape prevailing wage requirements across key employment-based immigration programs, including H-1B, H-1B1, E-3, and PERM labor certifications. Titled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States,” the proposal seeks to revise how prevailing wages are calculated for both Labor Condition Applications (LCAs) and PERM filings.
The proposed rule continues the agency’s broader effort to increase wage levels following years of litigation and regulatory uncertainty stemming from the October 2020 interim final rule. However, unlike prior attempts, this proposal adopts a more moderate approach and is being issued through standard notice-and-comment rulemaking. Notably, the rule would raise minimum wage thresholds by adjusting wage level methodologies, including effectively eliminating the current entry-level classification and requiring wages closer to what is currently considered Level II under the Occupational Employment and Wage Statistics (OEWS) system.
From a practical standpoint, these changes may significantly impact employers, particularly small businesses and nonprofit organizations, by increasing the cost of sponsoring foreign workers under H-1B and employment-based green card programs. At the same time, the proposal preserves the ability for employers to rely on private wage surveys that meet current DOL standards, which will remain a critical alternative for roles not easily aligned with the OEWS wage framework.
Importantly, the rule would not apply retroactively to previously issued prevailing wage determinations, LCAs, or PERM applications. The effective date has not yet been set, and the DOL will accept public comments through May 26, 2026. Employers and stakeholders should take this opportunity to assess how the proposed changes may affect their workforce planning, sponsorship strategies, and long-term immigration programs.
Given the potential for increased wage requirements and heightened scrutiny, employers should begin reviewing current and future cases, evaluating cost implications, and considering alternative strategies where appropriate. Early planning will be essential to maintaining flexibility and ensuring compliance in a shifting regulatory environment.
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Source: U.S. Department of Labor
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