Immigration News

June 26, 2026

DOL Proposes Major Wage Increases for H-1B, E-3, and PERM Programs: What Employers Need to Know

The U.S. Department of Labor (DOL) has proposed significant changes to how prevailing wages are calculated for H‑1B, H‑1B1, E‑3, and PERM cases. If finalized, the rule will raise wage requirements across all of these programs and materially impact employer sponsorship strategies. The notice and comment period on this proposed rule has closed and we are awaiting news of implementation.

👉 View the proposed rule

What’s Changing?

The rule would increase all four prevailing wage levels by shifting them to higher percentiles of government wage data. For example:

• Entry‑level roles (Level I) would rise from roughly the 17th percentile to the 34th percentile
• Mid- and senior-level roles would also see substantial increases (Levels II-IV)

The DOL’s stated goal is to ensure that foreign workers are paid wages comparable to similarly employed U.S. workers and to reduce incentives to use immigration programs to obtain lower labor costs.

Impact on H‑1B, H‑1B1, and E‑3 Employers

If implemented, employers can expect:

• Higher salary requirements for new filings and extensions
• Reduced feasibility of entry-level sponsorships
• Increased pressure to reclassify roles or adjust compensation structures
• Greater compliance scrutiny around wage levels

Impact on PERM (Green Card) Sponsorship

The proposed rule is especially significant for PERM cases, where prevailing wage drives the entire process:

• Higher wage commitments: Employers must offer at least the assigned prevailing wage at the green card stage, increasing long-term financial obligations
• Budget and timing risks: Delays in obtaining a prevailing wage determination may result in significantly higher wage requirements
• Recruitment impact: Higher wage levels may require rethinking PERM recruitment strategies or restarting recruitment if wages change
• Ability-to-pay challenges: Increased wages may make it harder to demonstrate financial ability at the I‑140 stage

Because PERM spans multiple years, these wage changes could affect both current planning and long-term workforce strategy.

What Employers Should Do Now

Although the rule is not yet final, employers should begin preparing by:

• Reviewing current wage levels for foreign national employees
• Evaluating upcoming H‑1B, E-3, H-1B1 and PERM cases for cost impact
• Considering timing strategies for PERM filings
• Potentially filing LCAs now for any visas renewals coming up in the next 24 months
• Monitoring developments and preparing to adjust quickly

Bottom Line

This proposal represents a major shift in DOL policy and could significantly increase the cost of employing foreign workers. Employers that rely on H‑1B, E-3, H-1B1 and PERM programs should begin planning now to mitigate potential disruption.