DOL Proposes Rule to Increase Wage Levels for H-1B Visa, PERM Labor Visas

What: On March 27, 2026, the U.S. Department of Labor (DOL) proposed a new rule that would significantly increase the wages for employers seeking foreign workers for temporary and permanent work under the H-1B, H-1B1, and E-3 visa programs.

Why: The DOL seeks to increase the wage levels to curb abuse of certain visa programs by reducing the incentive to displace American workers with low-wage foreign visa holders. The draft rule utilizes data from the Occupational Employment and Wage Statistics (OEWS) wage survey to establish the prevailing wage levels for temporary and permanent visas. The OEWS collects wage data nationwide and produces annual prevailing wage estimates for various occupations and geographic areas.


Comparison of New Prevailing Wages and Old Prevailing Wages under Proposed Rule Changes by Wage Level (2020-2024 data, this will differ by occupation/locality)

OEWS Wage LevelCurrent percentile levels for OEWS wage distributionProposed percentile levels for OEWS wage distributionPercent increase over old Prevailing Wage
Level 1 (Entry)17th percentile
$73,279
34th percentile
$97,746
33.39 percent
Level 2 (Qualified)34th percentile
$98,987
52nd percentile
$123,212
24.47 percent
Level 3 (Experienced)50th percentile70th percentile20.79 percent
Level IV (Fully Competent)67th percentile88th percentile21.68 percent

Action: Read the proposed rule and submit comments before the May 26, 2026, deadline.

DOL estimates the average wage cost per small entity is $20,000. The Office of Advocacy is seeking input on the impact of this rule on small businesses.


Is your small business or entity being impacted by a proposed rule? If yes, write a comment letter to the proposing agency.