The Labor Department is considering sharply higher prevailing wage floors for several employment-based immigration programs, a change that could increase sponsorship costs and narrow options for some foreign professionals seeking U.S. jobs or green cards.
How Wages Would Change
The Department of Labor published the proposal on March 27, 2026. It would revise the government wage methodology used for H-1B, H-1B1 and E-3 labor condition applications, as well as permanent labor certification cases connected to EB-2 and EB-3 green cards.
The current system divides wages into four levels based on factors such as a position's experience, education and supervision requirements. The proposal would move Level I from the 17th to the 34th percentile of local occupational wages. Level II would rise from the 34th to the 52nd percentile, Level III from the 50th to the 70th, and Level IV from the 67th to the 88th.
Employers using the H-1B, H-1B1 and E-3 programs generally must pay the higher of the applicable prevailing wage or the actual wage paid to similarly qualified employees. PERM employers must offer at least the prevailing wage for the sponsored position.
Why Sponsorship Could Get Harder
The department estimates that the proposed methodology would increase the average certified wage by approximately $14,000. The precise change would depend on the occupation, location and assigned wage level.
For employers, higher wage floors could require larger budgets before filing a new labor condition application or moving forward with permanent sponsorship. Organizations with fixed salary structures, including smaller companies, universities, nonprofits and research institutions, may have less flexibility to raise compensation.
For international students moving from Optional Practical Training to employer-sponsored status, entry-level sponsorship could face the greatest pressure. A qualified candidate could still satisfy immigration requirements, but an employer may decide that the required salary is beyond the position's budget. The proposal could also affect professionals changing employers or beginning the PERM green card process.
What Happens Next
The Labor Department says the revised structure would better align foreign-worker wages with those paid to similarly employed U.S. workers and reduce incentives to hire sponsored workers at below-market rates.
The proposal is not yet final. Its public comment period ended on May 26, 2026, and the rule remained in the proposed stage as of August 12, 2026. The department must review the record before deciding whether to issue a final regulation, and the final methodology or implementation schedule could change.
The March proposal states that its wage changes would not apply retroactively to already certified wages. Employers and sponsored workers should nevertheless review future filings carefully because a final rule could affect new applications submitted after its effective date.
This article provides general information and is not legal advice. Individuals should consult qualified immigration counsel about specific cases.
Sources
- US Department of Labor issues proposed rule revising prevailing wage methodology for H-1B, PERM visa programs — U.S. Department of Labor (March 26, 2026)
- Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States — Federal Register (March 27, 2026)
- DOL Immigration Rule Could Spell Trouble For Employers And Immigrants — Forbes (August 12, 2026)
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