DOL Proposes Major Prevailing Wage Increases for H-1B and PERM Green Cards

The U.S. Department of Labor has formally proposed a rule that would substantially increase prevailing wage levels required for H-1B visa holders and employers filing Permanent Labor Certification (PERM) applications for employment-based green cards, including EB-3. The proposed changes are based on updated Occupational Employment and Wage Statistics (OEWS) survey data. Under the proposal, wage requirements would increase significantly across all four levels: Level I 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. These represent roughly double the current minimum thresholds at the lower levels. The rule includes a 60-day public comment period before a final rule is issued. If finalized, the rule would apply on a going-forward basis only — existing Prevailing Wage Determinations and certified Labor Condition Applications would not be affected, but any pending determinations or LCAs as of the effective date would be subject to the new wage levels. Alternative Wage Surveys would still be permitted. This proposal closely mirrors a similar rule attempted during the first Trump Administration in 2021, which was struck down by federal courts and subsequently withdrawn by the Biden Administration. Legal challenges are widely anticipated, and the outcome of any litigation remains uncertain. For EB-3 applicants and sponsoring employers, this rule could significantly raise the salary bar required to obtain PERM labor certification approval. Employers considering filing new PERM applications should consult with immigration counsel to assess timing implications before the final rule takes effect.