DOL Proposes Major Increase to Prevailing Wages: Implications for Corporate Mobility

A new proposal from the U.S. Department of Labor (DOL) could significantly raise prevailing wage requirements across several key employment-based immigration categories. If finalized as drafted, the rule would have far-reaching consequences for corporate mobility programs, particularly those relying on early- and mid-career talent.

What DOL is proposing

DOL has issued a notice of proposed rule making (NPRM) titled“Improving Wage Protections for the Temporary and Permanent Employment ofCertain Foreign Nationals in the United States.” At its core, the proposal would change how prevailing wages are calculated for both immigrant and nonimmigrant visa categories, including PERM-based green cards and H-1B, H-1B1, and E-3 programs.

Rather than overhauling the existing four-level wage system, DOL proposes to redefine each level by tying it to higher percentiles within the Occupational Employment and Wage Statistics (OEWS) distribution. The stated goal is to better align wages for foreign nationals with those of similarly employed U.S. workers and to reduce the perceived incentive for employers to rely on lower wage tiers.

How wage levels would shift

Under the proposal, all four wage levels would move upward:

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In practical terms, roles currently classified as entry-level could be priced closer to, or even above, today’s mid-level salaries in certain markets. Early estimates suggest that required wages could rise by tens of thousands of dollars annually, with the steepest increases atLevel I.

DOL acknowledges that employers will face higher labor costs, and that some positions may no longer be viable at these wage levels. At the same time, the agency maintains that the changes are necessary to address downward pressure on U.S. wages.

Scope: which programs are affected

The proposal applies to prevailing wages used in two main contexs:

• PERM labor certification, particularly EB-2 and EB-3 cases
• Labor Condition Applications (LCAs) supporting H-1B, H-1B1, and E-3 petitions

If finalized, the new wage levels would apply to:

• Pending PERM prevailing wage determinations (PWDs) as of the rule's effective date
• New PWD requests filed after the effective date
• LCAs filed after the effective date that rely directly on OEWS data

Importantly, previously issued PWDs, certified LCAs, and approved PERM cases would not be recalculated. However, any future extensions or amendments that require new filings, and rely on OEWS data, would be subject to the higher wage thresholds. This is especially relevant for multi-year workforce planning.

The proposal does not eliminate the use of private wage surveys, which remain an alternative in certain cases. That said, many employers default to OEWS data, meaning the proposed changes would still have broad impact.

Timing and rule making outlook

The NPRM was published on March 27, 2026, with a 60-day comment period ending in late May. During this window, employers, universities, and industry groups have the opportunity to submit feedback.

After reviewing comments, DOL may finalize the rule as proposed, modify it, or withdraw it altogether. A final rule would include a future effective date, but once announced, timelines could move quickly.

The proposal closely mirrors a prior wage rule that was ultimately challenged in court. While DOL has attempted to address earlier procedural issues, the likelihood of litigation remains high, which could affect both timing and implementation.

About the Author

Ashlee Drake Berry is an employment-based immigration attorney and Head of Legal at Casium, a legal technology company focused on U.S. business immigration. She previously managed high-volume H-1B, PERM, and green card programs for a major technology company and has extensive experience advising startups, enterprise employers, and individual professionals on temporary visas and employment-based green card strategies. Ashlee writes regularly about the intersection of immigration policy, legal technology, and talent strategy, with a focus on practical playbooks employers can use to navigate fast-changing rules.