2026 Alert: DOL Wage Hike & USCIS Work Permit Ruling Impact EB-3 Applicants

A federal judge in California has ordered USCIS to resume adjudicating employment authorization applications (Form I-765) that had been placed on hold for nationals of Iran, Sudan, and other designated countries. The court ruled that USCIS cannot delay decisions indefinitely on national security grounds, mandating that affected applications be decided within 180 days of filing. This ruling is significant for EB-3 applicants and sponsored workers who rely on timely work authorization to maintain employment. The Department of Labor (DOL) has proposed major increases to prevailing wage requirements, a development with direct implications for EB-3 employment-based immigration. Higher prevailing wages raise the bar for employers sponsoring foreign workers through the PERM labor certification process, potentially increasing costs and reducing the number of positions eligible for EB-3 sponsorship. Employers with pending or upcoming PERM filings should evaluate their wage structures promptly. USCIS is also finalizing changes to the F-1 student visa and Optional Practical Training (OPT) program that would replace the existing Duration of Status framework with fixed admission periods. This would require more frequent status extensions and increase compliance burdens for both employers and international students. The changes could disrupt a key talent pipeline, particularly in STEM fields, and may indirectly reduce the pool of future EB-3 and H-1B candidates. Acting ICE Director Todd Lyons announced he will leave his position at the end of May 2026. His tenure was marked by expanded enforcement operations across major U.S. cities and heightened scrutiny over agency tactics. DHS has not named a successor, and the transition may signal shifts in near-term enforcement priorities. For EB-3 applicants and sponsoring employers, the most actionable developments are the USCIS work permit ruling and the DOL wage proposal. Employers should reassess prevailing wage compliance now, while affected individuals with pending EAD applications should monitor case status in light of the court's 180-day mandate.