DOL Proposes EB-3 Wage Increase 45% in 2026: PERM Labor Certification Alert

On March 26, 2026, the US Department of Labor (DOL) published a Notice of Proposed Rulemaking that would significantly revise how prevailing wage levels are calculated for the H-1B, H-1B1, and E-3 visa programs — and critically for EB-3 applicants, the PERM labor certification process. The proposed rule is currently in a public comment period, with comments due 60 days after its March 27 Federal Register publication. The core change involves shifting the wage percentile benchmarks upward across all four OEWS wage levels. Under the proposal, Level I (Entry) would rise from the 17th to the 34th percentile, Level II from the 34th to the 52nd, Level III from the 50th to the 70th, and Level IV from the 67th to the 88th percentile. DOL estimates this would increase average certified wages by approximately $14,000 per year per worker, representing a total industry-wide increase of $6.5 billion annually. For EB-3 applicants, this matters directly. Employers sponsoring foreign workers through PERM labor certification must obtain a Prevailing Wage Determination (PWD) from the DOL, which sets the minimum salary the employer must offer. If this rule is finalized, any pending PWD applications as of the effective date — and all new applications filed afterward — would be subject to the higher wage requirements. Existing approved PWDs and LCAs would not be retroactively affected. DOL's stated rationale is to better align certified wages with what similarly employed US workers actually earn, reduce employer incentive to undercut domestic labor costs through foreign worker sponsorship, and strengthen program integrity. Employers will still retain the option to commission private wage surveys as an alternative to OEWS-based determinations. The rule will not take effect immediately — it must complete the full notice-and-comment rulemaking process, which typically takes several months after the comment period closes. Employers and legal counsel considering PERM filings in 2026 should monitor this rulemaking closely and consider accelerating filings under the current wage structure before any effective date is set.