DOL Proposes New Prevailing Wage Rule to Moderate 2020 IFR Changes

The U.S. Department of Labor has issued a proposed rulemaking that would revise prevailing wage determinations for employment-based immigration programs, including the EB-3 visa category. The proposal is described as a 'moderated reset' following the controversial 2020 Interim Final Rule (IFR), which had dramatically increased prevailing wage levels across the board. The 2020 IFR, issued during the Trump administration, significantly raised wage floors for H-1B, PERM labor certification, and other employment-based immigration programs by recalibrating the wage survey methodology. Critics argued the increases were designed to deter employer sponsorship rather than reflect genuine labor market conditions. The new DOL proposal seeks to find a middle ground between pre-2020 levels and the steep increases introduced by the IFR. For EB-3 applicants and their sponsoring employers, prevailing wage determinations are a foundational element of the PERM labor certification process. Employers must offer at least the prevailing wage for the offered position in the relevant geographic area. Changes to how prevailing wages are calculated directly affect which positions qualify for sponsorship and the compensation costs employers must commit to. Immigration practitioners and employers should monitor the proposed rule's comment period and anticipated final implementation date. Pending PERM applications and future filings may be affected depending on when the final rule takes effect and whether it includes transition provisions for cases already in the pipeline.