DOL Proposes Significant Prevailing Wage Increases for EB-3 and H-1B Programs

The U.S. Department of Labor (DOL) published a proposed rule on March 27 that would substantially revise prevailing wage calculations for employment-based immigration programs, including EB-3 permanent residency through PERM labor certification. The rule introduces higher wage floors across all four levels by anchoring benchmarks higher in the Occupational Employment and Wage Statistics (OEWS) wage distribution. Under the current methodology, Level I wages are set at the 17th percentile and Level IV at the 67th percentile. The proposed rule would raise these to the 34th and 88th percentiles respectively, with Levels II and III calculated using a statutory formula. For EB-3 applicants, this means the minimum wages employers must certify when sponsoring workers through PERM would increase significantly across all occupation categories and geographic areas. The rule would apply to new Prevailing Wage Determination (PWD) applications pending with the OFLC National Prevailing Wage Center as of the effective date, as well as any submitted after. Previously approved PWDs and PERM applications would not be affected retroactively, providing some protection for cases already in the pipeline. Following the 60-day public comment period, the rule could be finalized as early as summer 2026, with an effective date approximately 30 days after finalization. Legal challenges are considered possible. Employers should assess whether current compensation structures for sponsored workers meet the proposed higher wage floors before the rule takes effect. For EB-3 sponsors and applicants, the practical implication is that new PERM filings initiated after the effective date will require higher offered wages. Employers planning future EB-3 sponsorships should factor these increases into workforce planning and budgeting, and may want to advance PERM filings where feasible before the rule becomes effective.