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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