DOL Issues H-1B Prevailing Wage NPRM, Raising Pay Levels for Employers

(UNITED STATES) — The Department of Labor issued a March 26, 2026 NPRM that could raise prevailing wage floors across the H-1B system just as employers await FY 2027 lottery results.

The proposal is a notice of proposed rulemaking, not a final rule. It would revise wage-setting for H-1B, H-1B1, E-3, and PERM cases. DOL says the goal is to bring sponsored worker pay closer to U.S. worker wage levels and reduce misuse of these programs.

For employers and job seekers, the timing matters. FY 2027 H-1B cap registration closed on March 19, 2026. Selection notices are expected around the end of March. The NPRM does not change those completed registrations, but it could reshape salary planning for filings that follow.

📅 Key Date: DOL’s proposed wage rule was issued on March 26, 2026 and is set for Federal Register publication on March 27, 2026.

What the NPRM would change

DOL wants to raise all four wage levels under the OEWS framework. Today’s system uses four tiers tied to percentiles in the wage survey. The proposal would move every tier upward.

That matters most for entry-level cases. Under the proposal, Level I would rise from the 17th percentile to the 34th percentile. In practice, that would push many entry-level H-1B salaries toward what is now roughly a Level II benchmark.

DOL says its model better reflects wages paid in H-1B-type occupations. It estimates an average annual increase of about $14,000 per certified position using recent fiscal-year data. That affects hiring budgets, LCA strategy, and job offer planning.

Every level moves higher, not just Level I. Still, lower-paid roles will get the most attention. Those cases already face questions when job duties look broad or wages look too low for the stated specialty occupation.

Why this matters during the FY 2027 lottery cycle

This year’s cap season already looks different. FY 2027 registration is tied to a wage-weighted H-1B lottery. Under that structure, higher wage levels receive more registration weight.

The reported weighting is:

• Level IV: 4 entries
• Level III: 3 entries
• Level II: 2 entries
• Level I: 1 entry

At the same time, the one-registration-per-beneficiary rule remains an important anti-duplication concept. Employers cannot improve a worker’s odds through duplicate filings for the same beneficiary. The larger policy shift is that wage level now carries more weight than it did in the prior process.

Compared with last year, employers now face a tighter link between wage level and lottery strategy. If DOL raises wage floors later, higher salary offers could gain even more value in future cap seasons.

⚠️ Employer Alert: A higher offered salary may affect both lottery weight and later LCA compliance. Job title, SOC code, duties, and wage level must match.

What happens next after selection or non-selection

If a registration is selected, the employer can file the H-1B petition during the filing window that begins April 1, 2026. The petition must include a certified Labor Condition Application, the offered wage, job details, and proof that the role qualifies as a specialty occupation.

The standard cap-subject start date remains October 1, 2026.

If a registration is not selected, that does not always end the case. USCIS may run additional selections if enough approved filings do not arrive. Employers and workers should still watch the USCIS account closely through the spring and summer.

Workers not selected should review other routes with the employer:

• Cap-exempt H-1B: Universities, nonprofits, research entities
• O-1: Workers with documented national or international acclaim
• L-1: Multinational transfers
• TN: Certain Canadian and Mexican professionals
• STEM OPT: F-1 students with qualifying employers and E-Verify

For job seekers, cap-exempt employers may become more attractive if wage floors rise for private-sector sponsorship. Universities and affiliated nonprofits can often file H-1B petitions year-round.

💼 Employee Tip: Ask which SOC code and wage level the employer plans to use. That choice affects both pay and petition risk.

Filing, budget, and compliance effects

Higher wages would affect more than H-1B cap cases. The proposal also reaches H-1B1, E-3, and PERM filings. That means broader pressure on recruiting budgets, sponsorship decisions, and labor market testing.

For PERM cases, higher wage floors could increase recruitment costs and make some offers harder to support. For H-1B employers, a higher minimum wage can change whether a junior role remains practical for sponsorship.

Some employers may look harder at alternative wage sources, where allowed, instead of relying only on OEWS percentile data. That choice needs close review. The wage source must still be defensible and consistent with DOL rules.

The fee structure for an H-1B filing remains separate from wage obligations:

Rulemaking status and timing

The NPRM is scheduled for Federal Register publication on March 27, 2026. That opens a 60-day comment period, which should close around May 26, 2026.

That means nothing changes at once. Current wage rules remain in place unless and until DOL issues a final regulation.

This point matters for pending FY 2027 cap filings. Employers should prepare petitions under current law, while also testing whether future wage budgets remain workable if the rule is finalized.

DOL’s proposal also recalls the 2020 Trump-era wage rule, which did not ultimately take effect in final form. That history is why employers should separate a proposal from a binding regulation.

Broader policy pressure

This NPRM sits inside a tougher policy climate. It is linked to Presidential Proclamation 10973 and the FY 2027 wage-weighted lottery. It also arrives with a revised Form I-129 effective April 1, 2026.

That creates three pressure points at once:

1. Higher wages may improve lottery positioning.
2. Higher wages may raise filing costs.
3. USCIS may still question specialty occupation eligibility, especially for lower-level jobs.

Entry-level roles remain the most exposed. A low wage, broad duties, and a weak degree connection can still draw scrutiny even before any final DOL wage rule arrives.

⏰ Deadline: Public comments on DOL’s NPRM are expected to close around May 26, 2026. Employers with heavy H-1B or PERM use should review the docket now.

What employers and workers should watch

Watch the DOL docket ETA-2026-0001 for updates. Employers should review job classifications, recruiting assumptions, wage budgets, and whether early-career positions still fit H-1B sponsorship plans.

Employees should verify that the offered salary meets at least the required wage for the location and occupation. They should also confirm whether the employer plans a cap filing, a cap-exempt route, or another visa strategy if the lottery does not work.

Secretary of Labor Lori Chavez-DeRemer said the proposal would help ensure foreign workers are paid wages that reflect the real market value of their labor while protecting American workers. That policy statement frames the rule, but the governing references remain the official DOL and USCIS materials.

Employers should prepare selected FY 2027 cases for filing on April 1, 2026, review whether current offers could withstand a later wage increase, and track the comment deadline near May 26, 2026. Employees should check their SOC code, wage level, and job duties now, ask whether the case is cap-subject or cap-exempt, and monitor USCIS updates through the end of March and into the filing season.

📋 Official Resources:

• H-1B Program: uscis.gov/h-1b-specialty-occupations
• Cap Season: uscis.gov/h-1b-cap-season
• Prevailing Wages: flcdatacenter.com