(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.

⚠️ 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:
- SOC code (the occupation classification).
- Geographic area (the worksite location).
- Wage level (I–IV), based on requirements and supervision.
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.
Finalize SOC, wage level, worksite, and salary bands
FY 2027 H-1B registration period
Selection notification
H-1B filing window
Employment start 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.
- 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.
- 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.
- Choose the wage level using supervision and complexity.
– Level is driven by discretion, impact, and independence—not only years of experience.
- 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.
- 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.
- 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.
| 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 |
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
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.
