DOL Proposes 33%+ Prevailing Wage Increase: EB-3 PERM Employers Must Act Now

The U.S. Department of Labor (DOL) has issued a proposed rulemaking that could dramatically increase prevailing wage requirements for employers sponsoring foreign workers under EB-2/EB-3 PERM, H-1B, H-1B1, and E-3 categories. The proposal was triggered by Presidential Proclamation 10973, which directed the Secretary of Labor to revise H-1B prevailing wage levels — but its reach extends to all four affected visa categories. Under the proposed changes, prevailing wage percentile benchmarks would shift substantially across all four skill levels. Level I (entry-level) wages would jump from the 17th to the 34th percentile, while Level II (qualified) would rise from the 34th to 52nd percentile — a greater than 24% increase. Level III and Level IV wages would increase by over 20% and 21%, respectively, with total increases potentially exceeding 33% depending on the occupation and location. For EB-3 PERM applicants specifically, this change is significant. Employers filing new PERM labor certifications after the rule takes effect would be required to offer substantially higher wages to qualify. This could disqualify some positions or require employers to restructure job offers to remain compliant, potentially delaying or complicating green card sponsorships. Practitioners recommend that employers conduct immediate internal wage audits to identify any current or future sponsored workers whose compensation falls short of the proposed levels. For nonimmigrant visa holders (H-1B, H-1B1, E-3), filing extensions up to six months early — before the new rule takes effect — may help avoid the higher wage requirements at renewal. The public comment period for the proposed rule closes on approximately May 26, 2026. Employers and immigration stakeholders are encouraged to submit comments and consult with immigration counsel to assess exposure and explore alternatives such as private wage surveys.