DOL Proposes Significant Increases to Prevailing Wage Levels

Apr 20, 2026 | Immigration Updates

The U.S. Department of Labor (DOL) has issued a Notice of Proposed Rulemaking that would substantially increase prevailing wage levels for H-1B, H-1B1, E-3, and PERM programs. If finalized, the rule will raise wage requirements and materially impact employer costs and workforce planning. 

The rule is currently in the notice-and-comment phase, and timing of implementation will depend on the rulemaking process.

Key Takeaways

1. Wage Levels Increasing Across All Tiers

  • Level I: 17th → 34th 
  • Level II: 34th → 52nd 
  • Level III: 50th → 70th 
  • Level IV: 67th → 88th

2. Higher Costs for Employers: Significant increases to wage obligations are expected across visa programs and PERM sponsorship.

3. Limited Window to Act: The rule will apply prospectively, allowing employers to file LCAs and initiate PERM processes under current wage levels before implementation.

4. Strategic Planning Is Critical: Employers should assess their workforce, identify at-risk employees, and consider early filings within a 1–3 year planning horizon.

Next Steps

  • Evaluate exposure across sponsored employees 
  • Model potential wage increases 
  • Consider early filings where appropriate

Although still subject to the notice-and-comment process, this proposal represents a significant shift in prevailing wage policy. Employers should reach out to counsel now to mitigate potential cost increases and prepare for implementation. While it is common to have a 60 day period before implementation, some are speculating this rule could be effective as early as July 2026.

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