Labor Department Plans to Increase Prevailing Wage Tiers
The Department of Labor has proposed increasing the minimum wage levels required for a prevailing wage determination, according to a Federal Register notice scheduled for March 27, 2026.
As part of the PERM or Labor Condition Application (LCA) process, U.S. employers must prove they are paying a foreign worker a fair wage. To determine what counts as a fair wage in different areas of the country, the DOL uses data from the U.S. Bureau of Labor Statistics’ Occupational Employment and Wage Statistics survey (OEWS).
If an employer fails to meet that requirement, they cannot sponsor a foreign worker through an LCA‑based category such as the H‑1B or a PERM‑based category like the EB‑2.
Below is a breakdown of how each wage level will change:
| Level | Current OEWS entry percentile | Proposed OEWS entry percentile |
| I (Entry level) | 17th | 34th |
| II (Qualified) | 34th | 52nd |
| III (Experienced) | 50th | 70th |
| IV (Fully competent) | 67th | 88th |
How this could affect U.S. employers hiring foreign workers
A disproportionate amount of U.S. employers hire foreign workers at the Level I and Level II wage levels. In Fiscal Year 2024, the DOL reports that 63% of certified LCAs were assigned to Level I or Level II wages. If these changes go into effect, companies would have to pay new H-1B workers more in order for them to fall under the appropriate level.
Manifest senior immigration attorney Henry Lindpere says this proposal would make it harder for U.S. employers to hire international talent through programs that rely on prevailing wage determinations. “Compensation planning will be imperative here, as many U.S. employers may no longer be able to hire, say, an H-1B worker based on a salary that’s currently acceptable,” she says.
Before the changes go into effect, Lindpere recommends:
- Seeking PERMs or LCAs before the policy goes into effect: This would allow companies to continue hiring at current wage levels.
- Expect further changes to the H-1B lottery: If the wage-weighted selection system continues, USCIS may choose to adjust its tier list further.
- Adjust hiring budgets to match competitive OEWS wage levels: Since candidates below the 34th percentile will no longer fall under the acceptable numbers, hiring teams should plan to adjust budgets when this goes into effect.
If you’re affected by these changes, request a consultation with us. For hiring teams, Manifest’s immigration attorneys can offer tailored guidance around navigating current and proposed wage levels set by the Labor Department.
