The Department of Labor just dropped a bombshell on March 27, 2026. Their new proposed rule will hit H-1B workers and PERM green card applicants hard. Level I wages are jumping from the 17th to the 34th percentile — that’s roughly $14,000 more per worker each year. If you’re sponsoring H-1B workers or applying for a green card, you need to act fast. Our immigration services team can help you understand what’s coming and prepare for it.
Here’s what’s happening. The DOL wants to shake up how prevailing wages work — and this could be the biggest change we’ve seen in years. Right now, Level I wages sit at the 17th percentile for similar jobs in your area. Under this new rule? That shoots up to the 34th percentile. We’re talking about essentially doubling the minimum wage threshold for entry-level positions. Both H-1B visas and PERM applications will feel this impact, though the actual dollar amounts will vary based on where you work and what you do.
The proposed changes also affect higher wage levels, with Level II wages moving from the 34th to the 50th percentile, Level III from the 50th to the 67th percentile, and Level IV from the 67th to the 84th percentile. These adjustments reflect the DOL’s stated goal of better protecting U.S. worker wages and ensuring that foreign workers are paid fair market rates.
How These Changes Impact Employers and Foreign Workers
For employers currently sponsoring H-1B workers or planning to file PERM applications, these wage increases present immediate challenges. Companies will need to reassess their compensation structures and budget for significantly higher labor costs. Startups and smaller businesses that rely on H-1B talent may find it increasingly difficult to compete with larger corporations for skilled foreign workers.
The impact on foreign workers is equally complex. While higher wages may seem beneficial, the increased costs could lead some employers to reduce H-1B hiring or become more selective in their sponsorship decisions. Workers currently in the United States on H-1B status may find their renewal applications more challenging if their employers cannot meet the new wage requirements.
For PERM green card applicants, the changes could significantly extend processing times and increase the complexity of labor certification applications. Employers may need to restart the PERM process if current applications cannot meet the new wage standards, potentially adding years to the green card timeline.
Industries heavily reliant on H-1B workers, including technology, healthcare, and engineering, will likely see the most dramatic effects. Geographic areas with lower cost of living may experience particularly sharp wage increases as the new percentile calculations bring salaries more in line with national standards.
What You Should Do Now
Given the magnitude of these proposed changes, immediate action is essential. Employers should begin by conducting a comprehensive review of all current H-1B positions and pending PERM applications. Calculate the potential wage increases for each position and assess budget implications for the coming fiscal year.
If you have H-1B workers whose current salaries fall below the proposed new minimums, start planning for wage adjustments now. Consider whether amendments to existing H-1B petitions will be necessary and factor these costs into your hiring budgets.
For pending PERM applications, evaluate whether your current prevailing wage determinations will meet the new standards. You may need to file new prevailing wage requests or adjust job requirements to ensure compliance with the proposed rules.
Foreign workers should work closely with their employers and immigration attorneys to understand how these changes might affect their specific situations. If you’re planning to change jobs or have a pending green card application, timing becomes even more critical under the new wage requirements.
Most importantly, stay informed about the rulemaking process. The proposed rule will likely face public comment periods and potential legal challenges. Having experienced legal counsel to monitor developments and advise on strategy is invaluable during this uncertain period.
Why Choose Tez Law P.C.
At Tez Law P.C., we understand the complexity and urgency surrounding these proposed DOL wage changes. Our immigration law team, led by Managing Attorney JJ Zhang, has extensive experience helping employers and foreign nationals navigate evolving immigration regulations nationwide.
We provide comprehensive immigration services across all 50 states, ensuring that clients receive consistent, expert guidance regardless of their location. Our team stays current with the latest regulatory developments and can help you develop strategies to address the challenges posed by these wage increases.
Whether you need assistance with H-1B compliance, PERM labor certification, or long-term immigration planning, we work closely with clients to find practical solutions that protect their interests while ensuring full compliance with immigration law requirements.
Our approach combines deep technical knowledge with practical business sense, helping employers balance their workforce needs with regulatory compliance. For foreign workers, we provide clear guidance on how regulatory changes might affect their immigration timeline and career plans.
Frequently Asked Questions
When will the new DOL wage requirements take effect?
While the proposed rule was published on March 27, 2026, the effective date depends on the completion of the rulemaking process, including public comment periods and potential legal challenges. Employers should prepare for implementation while monitoring official announcements from the DOL.
Do these wage increases apply to existing H-1B workers or only new applications?
The wage requirements will likely apply to all H-1B positions, including renewals and extensions of existing cases. Employers may need to increase salaries for current H-1B workers to meet the new prevailing wage standards when filing extension petitions.
How will these changes affect green card processing times?
The wage increases could potentially slow PERM processing as employers may need to refile applications that don’t meet new wage standards. Additionally, some employers may delay green card sponsorship due to increased costs, potentially affecting priority date movement for oversubscribed countries.
The DOL’s proposed H-1B and green card wage increases represent a pivotal moment for U.S. immigration law. Don’t wait to understand how these changes might affect your business or immigration plans. Contact Tez Law P.C. today for a free consultation to discuss your specific situation and develop a strategy to navigate these complex new requirements successfully.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Contact Tez Law P.C. at 626-678-8677 or [email protected] for advice specific to your situation. Results may vary.