The Department of Labor (DOL) has released a proposed rule that would raise the minimum wages employers must pay workers sponsored through H-1B, H-1B1, E-3, and PERM programs. The rule is scheduled for publication in the Federal Register on March 27, 2026.
If finalized, this change would affect both employers who sponsor foreign workers and the workers themselves. Here is what you need to know.
What the DOL Is Proposing
The DOL uses a four-tier wage system to set the minimum salary for sponsored workers in a given occupation and location. Under the proposed rule, every tier would move higher in the wage distribution:
- Level I would rise from roughly the 17th percentile to the 34th percentile
- Level II would rise from the 34th percentile to the 52nd percentile
- Level III would rise from the 50th percentile to the 70th percentile
- Level IV would rise from the 67th percentile to the 88th percentile
The DOL estimates these changes could increase average wages by approximately $14,000 per position.
Why the DOL Is Proposing These Changes
The DOL cites several reasons for the proposal. Its analysis found that H-1B workers earn on average about $10,000 less than comparable U.S. workers in the same roles. The agency also noted that a large share of H-1B positions are classified at Level I and Level II, despite the requirement that these roles involve specialized knowledge.
Additionally, Presidential Proclamation 10973, issued in September 2025, directed the DOL to revisit prevailing wage levels and address concerns about program misuse.
The agency's view is that current wage floors do not reflect actual labor market conditions and may create downward pressure on wages, particularly in high-skilled fields.
Who This Affects
The proposed wage changes would apply across many major employment-based immigration programs:
- H-1B specialty occupation workers
- H-1B1 workers from Chile and Singapore
- E-3 workers from Australia
- PERM labor certification for EB-2 and EB-3 green card categories
The DOL applies the same wage approach across these programs because many H-1B workers eventually move to PERM-based green card sponsorship. Using different standards across programs would create an incentive to choose whichever pathway has the lower wage requirement.
What This Means for Employers
The revised wages would apply to prevailing wage determinations pending on the effective date and to new LCA filings, unless an employer already obtained a prevailing wage determination under the prior framework. Previously approved certifications would not be reopened.
Higher prevailing wages will directly affect H-1B salary requirements, PERM recruitment and offered wages, and long-term compensation planning for sponsored employees. The DOL estimates the rule could shift up to $6.56 billion annually from employers to workers through higher wages.
Employers should begin evaluating the financial impact on their immigration programs. It may also be worth considering whether to move forward with certain filings under the current wage framework before a final rule takes effect. Reviewing internal job leveling and compensation structures for consistency with immigration filings will also be important as wage floors increase.
What This Means for Sponsored Workers
For workers whose visas depend on prevailing wage requirements, the proposed increases could lead to higher compensation. At the same time, higher required wages make sponsorship more costly for employers, which could influence hiring decisions and the availability of sponsorship for certain roles, particularly at the entry level.
Timeline and Status
This is a proposed rule and is not yet in effect. The DOL will accept public comments for 60 days after publication. Comments can be submitted through regulations.gov under Docket No. ETA-2026-0001.
After the comment period, the DOL could issue a final rule later in 2026, with implementation potentially following in late 2026 or early 2027. The timeline may also be affected by legal challenges
