Summary At a Glance
- The DOL has proposed changes to prevailing wage calculations that could significantly increase required salaries for H-1B, E-3, and PERM-sponsored workers, with some entry-level wages projected to rise substantially.
- The proposal was published March 27, 2026, with a public comment deadline of May 26, 2026; implementation timing remains pending final rulemaking.
- If finalized, the rule may materially impact workforce planning, recruitment strategies, and labor cost forecasting.
On March 27, 2026, the U.S. Department of Labor (DOL) published a proposed rule designed to modernize the prevailing wage methodology for several key visa programs. Titled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States,” the proposal aims to align the salaries of foreign workers more closely with those of similarly employed U.S. workers.
If finalized, this rule would represent a major shift in how minimum required salaries are calculated for H-1B, E-3, and PERM labor certification programs. The DOL estimates that these adjustments could increase the average required wage for sponsored workers by approximately $14,000 per year, with entry-level roles potentially seeing a pay floor increase of more than one-third (33%).
Recommended Next Steps for Employers
Employers should evaluate their current and anticipated use of H-1B and PERM sponsorships to model potential cost increases under the proposed wage levels. It is also important to participate in the regulatory process by submitting public comments to the DOL before the deadline of May 26, 2026, deadline, as these changes could significantly impact long-term budgeting and recruitment strategies.
