Executive Summary
- On March 27, 2026, the DOL published a proposed rule that would raise the minimum required wages for H-1B, H-1B1, E-3, and PERM workers. This is a proposal only. Nothing is in effect yet.
- If finalized, the impact will look different depending on whether you are hiring someone new, managing a current sponsored employee, or working through the PERM process.
- The public comment period closes May 26, 2026. HR teams do not need to wait for a final rule to start planning.
What Is Being Proposed
On March 27, 2026, the Department of Labor published a proposed rule that would raise the minimum wages employers must pay H-1B, H-1B1, E-3, and PERM workers. Here is what the proposed change would look like across all four wage levels:
Across all levels, wages are estimated to increase somewhere between 20% and 33%, depending on the role, level, and location. A few things to keep in mind when reading this table:
- The DOL estimates the average required wage would go up by about $14,000 per year per sponsored worker across all levels.
- The exact dollar impact varies by job category and location. For a mid-level software engineer (Level II) in New York or San Francisco, the increase could be $30,000 to $45,000 per year.
- Entry-level roles (Level I) take the biggest hit, with the wage floor effectively doubling its position in the national wage distribution.
When Could This Take Effect?
There is no confirmed effective date. Here is how the process works and what is realistic to expect:
- Now through May 26, 2026: The comment period is open. Employers, HR teams, and industry groups can submit feedback to the DOL.
- Summer to Fall 2026: After May 26, the DOL reviews all submissions. There is no fixed deadline for this step. Depending on the volume of comments and any revisions the agency makes, this review typically takes several months.
- Late 2026 at the earliest, more likely 2027: Once a final rule is published, it typically takes effect 30 to 60 days later. Given the timeline, late 2026 is the floor, and 2027 is more realistic.
- It may not happen at all: A nearly identical prevailing wage rule was proposed in 2020 and was blocked by federal courts before it ever took effect. HR teams should plan for this rule, but not treat it as a certainty.
How This Could Affect Each Part of Your Workforce
New hires you plan to sponsor
If you are extending offers to candidates who will need H-1B sponsorship, the proposed rule changes how you should think about comp bands.
- Under current rules, you set the offered salary and file at the prevailing wage level that matches it.
- If this rule is finalized, the minimum salary required for sponsored Level I and Level II roles would rise significantly.
- Example: A Level I software engineer role that today carries a prevailing wage of around $85,000 could require $110,000 or more under the new floors in some markets.
- If your current comp band for a role falls below the new floor, you would not be able to file at that salary. This is worth flagging to your compensation team and hiring managers now, before offers go out.
Current employees already on H-1B visas
This is typically where HR teams have the most exposure, because the population is largest and the decisions take the most time to work through.
- Already-approved H-1B petitions are not affected. The current prevailing wage holds through the existing approval period.
- The new floors would apply to petitions filed after the effective date, including H-1B extensions.
- This means any employee whose H-1B comes up for extension after the rule takes effect would need to meet the new wage requirement at the time of filing.
What to do now:
- Pull a list of every sponsored employee and flag those with extensions due in the next 12 to 24 months.
- For each one, check whether their current salary would meet the proposed new prevailing wage for their role and location.
- If there is a gap, build the comp adjustment into your next budget cycle rather than treating it as an emergency later.
Employees in the PERM process
The PERM process has a few different scenarios depending on where each employee stands, and the rule affects them differently.
If the PERM has not been started yet:
- Any case filed after the rule takes effect would need to use the new prevailing wage levels.
- The job offer built into the PERM filing must meet the new floor.
- If the employee's current comp is below the proposed threshold, you will need to either adjust the salary or time the filing carefully. The decision of when to file has downstream effects on the employee's green card timeline, so coordinate with your immigration counsel early.
If the PERM has been filed and is pending:
- Cases already submitted to the DOL were filed under the wage rules in effect at the time and would not be retroactively affected.
- If the case is approved, the prevailing wage from the original filing stands.
If the PERM is approved and you are moving toward the I-140:
- An approved PERM locks in the prevailing wage from the time of filing.
- Moving to I-140 does not require redoing the wage determination.
- The new floors would only come back into play if the PERM needs to be reopened or refiled for any reason.
The biggest risk for HR teams is not the cases already in progress. It is the employees still waiting to start PERM who may get caught if comp adjustments take time to process internally.
What to Do Between Now and May 26
You do not need to make any final decisions right now, but there are a few concrete steps worth taking while the rule is still in the comment period.
- Build your affected roster. Organize sponsored employees into three groups: those with H-1B extensions due in the next 24 months, those currently in the PERM process, and new hires you plan to sponsor. This gives you a clear picture of where the exposure sits before you run any numbers.
- Run a comp gap analysis. For each group, compare current salaries against the proposed new percentiles for their wage level, job category, and location. The DOL's OEWS wage data is publicly available and organized by SOC code and metro area. This tells you which roles need attention and which are already above the new threshold.
- Loop in your finance and compensation teams. If the gap analysis shows meaningful increases ahead, those numbers need to be in front of the people who own the salary budget before this becomes urgent.
- Consider submitting a public comment. Employers can submit feedback directly to the DOL. Comments grounded in real workforce data, such as how many employees are affected and what the estimated cost would be, carry the most weight. The comment period is open through May 26, 2026 at Docket No. ETA-2026-0001.
Frequently Asked Questions
Does this affect employees whose H-1B is already approved?
No. If an H-1B petition is already approved, the current prevailing wage applies through that approval period. The new wage floors, if finalized, would apply to petitions filed after the effective date, including extensions.
What if we filed a PERM last year and it is still pending?
Cases already submitted to the DOL were filed under the wage requirements in effect at the time of filing. A new rule would not retroactively change a pending case. Once approved, the wage determination from that filing stands.
What is a prevailing wage, in plain terms?
It is the minimum salary the DOL requires you to pay a sponsored worker for a specific job in a specific location. It is based on what other employers in that market pay for the same type of role. Your actual offer can be higher, but it cannot go below that floor.
When would the new wages take effect if the rule is finalized?
There is no confirmed date. Given the comment period closes May 26, 2026, a final rule would realistically not take effect until late 2026 at the earliest, and more likely sometime in 2027.
This article is for informational purposes only and does not constitute legal advice. Consult qualified immigration counsel before making decisions about your sponsored workforce.
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