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 Level | Current percentile levels for OEWS wage distribution | Proposed percentile levels for OEWS wage distribution | Percent 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 percentile | 70th percentile | 20.79 percent |
| Level IV (Fully Competent) | 67th percentile | 88th percentile | 21.68 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.