A US Department of Labor (DOL) regulation that could increase prevailing wage requirements for H-1B visa holders and employment-based green card applicants has reached the final stage of federal review, potentially paving the way for higher salary thresholds for employers sponsoring foreign workers.
The final rule has been submitted to the Office of Management and Budget (OMB), which is reviewing the regulation before its publication in the Federal Register, according to November 9 update.
The regulation would revise prevailing wage minimums under the federal government’s four-level wage system, affecting employers hiring foreign workers through the H-1B, H-1B1 and E-3 visa programs, as well as those sponsoring workers through the PERM labor certification process.
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Proposed changes could raise entry-level wage benchmarks
Under the existing system, prevailing wages are divided into four levels based on experience, skills and job requirements. The March 2026 proposal sought to raise the wage benchmarks across all four categories.
The proposed changes would move the minimum wage benchmark for Level I, typically associated with entry-level positions, from the 17th percentile to the 34th percentile of wages for the relevant occupation and geographic area. The Level II benchmark would rise from the 34th to the 52nd percentile, Level III from the 50th to the 70th percentile, and Level IV from the 67th to the 88th percentile.
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The Department of Labor’s proposed regulation, published in March, was intended to strengthen wage protections for American workers and reduce incentives for employers to hire foreign workers at lower salaries.
In its March 26 announcement, the department said the changes would help align compensation for foreign workers with wages paid to similarly employed US workers and prevent foreign labor from undermining domestic wages and employment opportunities.
Final wage rule could take effect before 2027 H-1B season
The proposed rule underwent a 60-day public comment period, which ended in May 2026. The department has since reviewed the feedback and prepared a final regulation, which is now with OMB.
The timing could make the regulation relevant to the next H-1B cap season, which begins in late winter or early spring 2027, although the actual impact will depend on the final rule’s publication and effective dates, according to Fragomen.
The final wage levels have not yet been disclosed, and the published regulation could differ from the March proposal.
The proposed changes could mean higher wage requirements for certain new H-1B filings and employment-based green card cases, potentially affecting hiring decisions and sponsorship costs.