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Green Card

2026 U.S. Immigration Shock: DHS Pauses Green Card Actions

The H-1B prevailing wage requirement is a mandatory financial floor based on job role and location. Proper classification across four levels (I-IV) is critical for FY 2027 filings. Misalignment triggers RFEs and jeopardizes future Green Card processes. Employers must finalize wage planning before the March 2026 registration to avoid legal and financial penalties.

Last updated: January 3, 2026 9:01 am
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📄Key takeawaysVisaVerge.com
  • Employers must pay the higher of the prevailing or actual wage to remain compliant with H-1B regulations.
  • Wage levels are determined by SOC code, location, and level, significantly impacting RFE risk and Green Card strategy.
  • Failure to meet wage floors triggers severe penalties including back wages, civil fines, and potential program debarment.

(UNITED STATES) — The prevailing wage requirement is the financial backbone of every cap-subject H-1B filing for FY 2027, and it increasingly drives both approval risk and long-term Green Card strategy for working professionals in 2026.

Under H-1B rules, the employer must pay at least the higher of the prevailing wage for the role and location, or the employer’s actual wage for similarly employed workers. This is not a “pay guidance” concept. It is a compliance obligation tied to the Labor Condition Application (LCA), worksite address, and job classification. Mistakes now create downstream risk in PERM and I-140 cases, because wage, job duties, and work location must stay consistent across filings.

2026 U.S. Immigration Shock: DHS Pauses Green Card Actions
2026 U.S. Immigration Shock: DHS Pauses Green Card Actions

⚠️ Employer Alert: Paying below the required wage can trigger DOL back wages, civil penalties, LCA debarment, and H-1B petition revocation risk.

Prevailing wage levels and why USCIS cares

Prevailing wage levels are set by the Department of Labor methodology. Employers select an SOC code and wage level based on duties, supervision, and experience. USCIS then tests whether the job is a specialty occupation and whether the wage level matches the claimed complexity.

Prevailing Wage Level DOL Description Percentile Typical Experience
Level I Entry 17th 0–2 years, close supervision
Level II Qualified 34th 2–4 years, limited judgment
Level III Experienced 50th 4–6 years, independent
Level IV Fully Competent 67th 6+ years, expert

The wage level becomes a credibility signal. A low wage level combined with broad, complex duties can invite a Request for Evidence (RFE). This scrutiny is especially common for third‑party placements and hybrid roles.

How prevailing wage is determined: SOC code + area + level

Prevailing wage is determined by three items that must match the real job:

  1. SOC code (the occupation classification).
  2. Geographic area (the worksite location).
  3. Wage level (I–IV), based on requirements and supervision.
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H-1B Prevailing Wage and Filing Requirements for FY 2027
Mandatory wage, classification, worksite, and filing consistency requirements employers and beneficiaries must meet for H-1B registration and future Green Card alignment

1
Pay at least the higher of prevailing wage or employer’s actual wage
Required. Employer must pay the higher of the DOL prevailing wage for the role and location or the employer’s actual wage for similarly employed workers; compliance is tied to the Labor Condition Application (LCA), worksite address, and job classification.

FY 2027 H-1B key deadlines — what to lock and when
Finalize SOC code, level, worksite, and salary bands by February 2026
Lock the worksite location and salary band before the March 2026 registration
Registration Period — Early-to-mid March 2026
Filing Window — April 1 – June 30, 2026
Employment Start — October 1, 2026

2
Correct SOC code selection based on duties
Required. Map duties (not job title) to the appropriate SOC code using a duty list with percentage allocations; USCIS/DOL evaluate duties when testing specialty occupation and wage level.

3
Accurate geographic worksite (metro) determination
Required. The LCA worksite address and corresponding metro area must be correct because geographic area materially changes the wage floor; remote work or moves (e.g., Dallas to San Jose) can require a new LCA.

4
Choose the appropriate wage level (I–IV) based on supervision and complexity
Required. Select Level I–IV per DOL definitions (Level I entry 0–2 years; Level II 2–4; Level III 4–6; Level IV 6+), driven by discretion, impact, independence, supervision, and complexity; misalignment invites scrutiny and RFEs.

5
Maintain consistency across LCA, H-1B petition, and PERM filings
Required. Wage, job duties, and work location must remain consistent across filings to avoid DOL back wages, civil penalties, LCA debarment, petition denial/revocation, and increased audit risk in PERM/I-140 cases.

6
Lock worksite location and salary band before March 2026 registration
Required. For FY 2027, finalize the worksite location and salary band before the March 2026 registration period; post-selection job changes can force refiling.

7
Provide SOC code, wage level, and LCA worksite address to employee before filing
Optional. Employees should request and keep copies of the SOC code, wage level, and LCA worksite address before the petition is filed as these details affect approvals and future Green Card filings.

Common employer errors:
– Treating SOC selection as a title exercise. USCIS and DOL care about duties, not the business card.
– Mis-mapping a title like “Data Analyst” to a single SOC when duties (programming, modeling, autonomy) could map to multiple SOC codes.
– Ignoring geography. Remote work from a different metro area can require a new LCA. A move from Dallas to San Jose materially changes the wage floor.

For wage research, HR teams and employees should review the DOL wage library on flcdatacenter.com. It’s the easiest way to compare levels by metro area and SOC.

💼 Employee Tip: Ask for your SOC code, wage level, and LCA worksite address before the petition is filed. These details affect approvals and future Green Card filings.

FY 2027 cap timing: wage planning starts before registration

Prevailing wage planning does not start in April. It begins months earlier, because job design, location decisions, and salary approvals take time.

⏰
FY 2027 H-1B Prevailing Wage & Cap Timeline
Key dates for employers and beneficiaries to finalize wage, worksite, and filing steps for FY 2027 H-1B cap-season

VisaVerge

By February 2026
Finalize SOC, wage level, worksite, and salary bands
Employers should finalize SOC code, wage level, worksite address, and salary bands before registration and selection to avoid refiling or RFEs.

Early-to-mid March 2026
FY 2027 H-1B registration period
Electronic registration for the FY 2027 H-1B cap occurs during this registration window.

Late March / Early April 2026
Selection notification
USCIS notifies registrants whose beneficiaries were selected in the FY 2027 H-1B lottery.

April 1 – June 30, 2026
H-1B filing window
Petitions for selected beneficiaries may be filed with USCIS during this filing window.

October 1, 2026
Employment start date
Authorized employment for FY 2027 cap selections may begin on this date.

FY 2027 Milestone Typical Date Range
Registration Period Early-to-mid March 2026
Selection Notification Late March / Early April 2026
Filing Window April 1 – June 30, 2026
Employment Start October 1, 2026

Registration selection is now beneficiary-centric (one entry per person). That change reduced duplicate entries and increased pressure on “clean” filings after selection. Wage mistakes are a common reason for delays and RFEs.

The Level I wage debate: entry-level does not mean “low scrutiny”

Level I remains appropriate for true entry-level roles. The issue is misalignment between duties and wage level. USCIS tends to scrutinize Level I when the petition claims advanced knowledge, independent judgment, or client-facing ownership.

Level I is acceptable when facts match: structured training programs, close supervision, and narrow scopes. Problems arise when employers describe senior duties but pay entry wages.

This debate impacts Green Card planning in 2026. If an H-1B is filed at Level I, but the PERM describes Level III duties, the record can look inconsistent and trigger audits. Employers should decide early whether the job is truly entry-level. If the role requires 3–5 years of experience, the wage and job description should reflect that. Misclassification creates both H-1B risk and PERM audit risk.

Consequences of paying below the prevailing wage

Paying below the required wage is not a simple payroll correction. It can become a multi-agency compliance problem:

  • DOL consequences:
  • Back wages
  • Civil money penalties
  • Debarment from the H-1B program (affects future cap filings, transfers, and extensions)

  • USCIS consequences:

  • Petition denial or revocation
  • Extension-time problems
  • Damage to credibility in Green Card filings (USCIS and DOL compare position details across cases)

Practical employee impacts include effects on eligibility for future extensions, portability, family stability, and tax complexity if retroactive back wages are later paid.

⏰ Deadline: For FY 2027 filings, lock the worksite location and salary band before the March 2026 registration. Post-selection job changes can force refiling decisions.

Tips for accurate wage determination in 2026

Accurate wages come from a disciplined intake process shared between HR, the hiring manager, and immigration counsel.

  1. Map duties to the SOC code, not the title.

– Use a duty list with percentage allocations.
– Keep it consistent across LCA, petition letters, and offer documents.

  1. Confirm the real worksite address.

– Hybrid policies must specify where work is performed most days.
– If a home office is a worksite, plan LCA posting and wage coverage.

  1. Choose the wage level using supervision and complexity.

– Level is driven by discretion, impact, and independence—not only years of experience.

  1. Benchmark internal “actual wage” practices.

– The H-1B worker must be paid at least the actual wage for similarly situated employees.
– Maintain documentation before filing.

  1. Build Green Card alignment from day one.

– If the employer expects to sponsor PERM, keep job requirements stable.
– Avoid inflating requirements later unless the role truly changes.

  1. Use flcdatacenter.com to sanity-check wage levels.

– Compare Level I vs Level II for the same SOC and metro.
– Large gaps can guide budgeting and offer decisions.

Wage compliance and Green Card strategy are now linked

Working professionals in 2026 manage not only cap filings but also multi-year backlogs, PERM delays, and location compliance. DOL processing for PERM can exceed 12–14 months, increasing the cost of early mistakes.

For H-1B holders, starting a Green Card process by Year 2 is a practical target. Early filing improves odds of securing an I-140 in time for extensions beyond six years, when eligible. That planning is harder if the H-1B wage level and duties were weakly documented.

VisaVerge.com
⏱️

H‑1B / PERM Processing Timeframes for FY 2027
Specific timeframes mentioned for FY2027 cap steps and DOL PERM processing duration

Country/Type Visa Category Processing Time
USA FY 2027 Registration Period Early-to-mid March 2026
USA FY 2027 Selection Notification Late March / Early April 2026
USA FY 2027 Filing Window (H-1B petitions) April 1 – June 30, 2026
USA H-1B Employment Start (cap cases) October 1, 2026
USA PERM DOL processing 12–14 months
Processing times are estimates and may vary based on individual circumstances

The January 2026 Visa Bulletin shows uneven movement across categories. EB-1 advanced for some countries, while EB-2 India remained deeply backlogged. This uneven movement makes early, accurate role positioning more important for promotions and category selection.

FY 2027 fees that employers must budget alongside wage increases

Wage compliance interacts directly with cost planning. Employers should budget both salary floors and required filing fees.

Fee Amount Required
Registration $215 Yes
I-129 Filing $780 Yes
ACWIA $750–$1,500 Yes
Fraud Prevention $500 Yes
Premium Processing $2,805 No

A higher wage level can be the difference between an approvable case and a difficult RFE cycle. That cost is often lower than a delayed start date or a lost candidate.

Employers should finalize SOC code, level, worksite, and salary bands by February 2026. Employees should request and keep copies of the LCA and offer terms. Both parties must keep job duties consistent for Green Card planning in 2026, especially where PERM is anticipated.

📋 Official Resources:
– H-1B Program
– Cap Season
– Prevailing Wages: flcdatacenter.com

📖Learn today
Prevailing Wage
The average wage paid to similarly employed workers in a specific occupation in the area of intended employment.
SOC Code
Standard Occupational Classification code used by federal agencies to classify workers into occupational categories.
LCA
Labor Condition Application; a document filed with the DOL where employers attest to wage and working conditions.
RFE
Request for Evidence; a notice from USCIS asking for additional documentation to process a petition.

📝This Article in a Nutshell

Compliance with prevailing wage requirements is essential for H-1B success in FY 2027. This financial obligation is tied to the Labor Condition Application and impacts Green Card eligibility. Employers must select the correct SOC code and wage level (I-IV) based on duties and location. Errors lead to DOL penalties and petition revocations. Strategic planning should begin months before the March 2026 registration window to ensure alignment.

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Sai Sankar
BySai Sankar
Editor in Cheif
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Sai Sankar is a law postgraduate with over 30 years of extensive experience in various domains of taxation, including direct and indirect taxes. With a rich background spanning consultancy, litigation, and policy interpretation, he brings depth and clarity to complex legal matters. Now a contributing writer for Visa Verge, Sai Sankar leverages his legal acumen to simplify immigration and tax-related issues for a global audience.
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