DOL Proposed Rule: H1B Prevailing Wage Salary Jump 2026 Hits EB2 EB3 Green Card Applicants

On March 27, 2026, the U.S. Department of Labor (DOL) published a long-awaited proposed rule that would substantially increase prevailing wage (OEWS) requirements for employment-based immigration sponsorship programs, including H-1B, E-3, H-1B1, EB-2, and EB-3 categories. The rule aims to better align wage levels with actual U.S. worker compensation and reduce incentives for employers to substitute foreign nationals for domestic workers at below-market wages. Under the proposed changes, each of the four OEWS wage tiers would see significant increases. Level I would rise from the 17th to the 34th percentile (approximately 33% higher), Level II from the 34th to the 52nd percentile (24% higher), Level III from the 50th to the 70th percentile (21% higher), and Level IV from the 67th to the 88th percentile (22% higher). DOL's analysis of LCA filings from FY2020–2025 found an average $19,000 gap between wages paid to sponsored foreign workers and comparable U.S. workers, justifying the increase. For EB-3 applicants and their sponsoring employers, the impact would be substantial. The rule would effectively eliminate current Level I sponsorship by raising its floor to what is now the Level II threshold. Entry-level and early-career EB-3 PERM cases would face significantly higher minimum wage requirements, making sponsorship more costly and potentially unviable for small employers and startups, particularly in technology and engineering sectors. Employers would need to reassess pending and future PERM labor certification filings to ensure offered wages meet the new thresholds if the rule is finalized. The proposed rule is open for public comment, and its implementation timeline has not yet been confirmed. EB-3 applicants currently in process are advised to consult with their immigration counsel to evaluate potential exposure.