DOL Submits H-1B/PERM Wage Rule to OMB, Reviving Higher Wages

The U.S. Department of Labor has sent a new rule to the White House Office of Management and Budget for review, signaling a renewed push to raise prevailing wages tied to the H‑1B program and the PERM labor certification process that employers use for many employment‑based green cards. The rule, described as “Improving Wage Protections for H‑1B and PERM Employment,” is not yet public, but its arrival at OMB marks the most concrete step so far in President Trump’s 2025 directive to rewrite the wage rules that shape what employers must pay many foreign workers in the United States 🇺🇸.

Background: Presidential directive and earlier steps

The move follows President Trump’s September 19, 2025 presidential proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers,” which, according to the provided material, directed the Labor Department to “initiate a rulemaking to revise the prevailing wage levels” and to give preference to “higher‑paid, higher‑skilled” nonimmigrant admissions.

• The proclamation also created a new $100,000 H‑1B entry fee and pointed both DHS and DOL toward changes that would make lower‑paid cases harder and more expensive to run.
• After the proclamation, DOL published a Notice of Proposed Rulemaking in the Federal Register in late September 2025 proposing to raise prevailing wage levels for H‑1B petitions, identified as Document No. 2025‑18473.

“Initiate a rulemaking to revise the prevailing wage levels” — Presidential proclamation (September 19, 2025)

Why the wage rule matters to employers and workers

The wage rule affects employers’ budgets in two main ways:

1. It can require higher base salaries.
2. It can change what qualifies as a compliant job offer.

Under current practice, employers must pay at least the higher of:

• the actual wage they pay similar workers at the company, or
• the government‑set prevailing wage for the job and location.

Raising prevailing wages can therefore force companies to increase pay for a role even if internal pay scales haven’t changed.

Practical consequences

• Higher wage floors can break hiring plans or green card budgets, especially in smaller labor markets.
• Timing matters: if a rule takes effect quickly, it can conflict with PERM recruitment already under way, where the posted wage and final offered wage must align with the government’s determination.
• For foreign workers, changes can:
  • make some roles more secure (through higher pay),
  • or make sponsorship less likely for early‑career workers and recent graduates.

Legal and historical context

The DOL’s transmission to OMB recalls an earlier contentious effort:

• In 2020, DOL issued an interim final rule that would have sharply raised entry‑level wage requirements by moving Level I from about the 17th percentile toward the 45th percentile, while increasing other wage levels as well.
• Courts blocked that 2020 rule; it was later rescinded or withdrawn in December 2021 after further litigation.

That history signaled that wage spikes can be politically tempting but legally fragile. The new OMB submission suggests the administration is prepared to try again with a fresh rulemaking record.

What is still unknown and what practitioners are watching

Because the rule text is not yet public, critical details remain unclear:

• Exact percentiles for wage Levels I–IV (e.g., Level I at the 35th vs. 45th percentile).
• Phase‑in schedules and effective dates.
• Compliance mechanics, including how duties, job titles, and locations will be treated.
• Any transitional rules for PERM recruitments already in progress.

These choices determine the real‑world impact on salaries, hiring, and green card processing.

Coordination with DHS and selection rules

The proclamation’s $100,000 H‑1B entry fee and related DHS initiatives add context and pressure:

• DHS rulemaking on wage‑weighted H‑1B selection is being coordinated with the DOL wage changes.
• That coordination raises the possibility that lower‑wage registrations could be less likely to be selected even before wage regulations take effect.

Together, higher selection hurdles and higher required pay could steer demand toward employers willing and able to pay at the top of the market.

Enforcement: “Project Firewall” and increased scrutiny

The provided material notes DOL announced “Project Firewall,” a targeted H‑1B enforcement initiative tied to the September 2025 actions.

• If DOL increases scrutiny of wage determinations, Labor Condition Application (LCA) accuracy, and recordkeeping, the wage rule could come with more audits and requests for proof.
• Even employers who pay well can be tripped up if job titles, work locations, or duties drift from what was listed in original filings and wage documentation.

Rulemaking process and what to expect next

Transmission to OMB puts the rule in interagency review, the stage where agencies refine:

• cost estimates,
• paperwork burdens,
• legal justifications.

After OMB clearance:

1. The rule would be published in the Federal Register.
2. A public comment period (often 30–60 days) would follow.
3. DOL would then review comments and issue a final rule — potentially with phased implementation or exceptions for in‑progress cases.

Many businesses, universities, and hospitals typically use the comment window to argue for:

• phased implementation,
• clearer definitions,
• exceptions for ongoing cases.

How to track the proposal

Employers and practitioners should monitor official publications:

• The Federal Register — DOL proposals and public comment dockets will appear here once cleared for release.
• Trade groups and immigration law firms, who are likely to weigh in heavily once the text is available.

Potential economic and workforce effects

• Direction of travel is clear: higher required pay raises the cost of hiring through H‑1B and completing PERM sponsorship.
• Responses by employers may include:
  • Raising offers to remain competitive and compliant.
  • Slowing sponsorship for junior roles.
  • Shifting hiring or work to other countries with lower wages and regulatory burdens.

VisaVerge.com reports employers often struggle most with short timelines and payroll mismatches when wage tables change.

Legal stakes and likely outcomes

• The rulemaking will be a legal test: the 2020 wage rule’s court setbacks remain a cautionary precedent.
• Any new regulation will need robust procedure and solid legal explanations to survive challenges.
• Until DOL releases the proposed text and analysis, stakeholders are preparing for outcomes ranging from modest lifts to a rewriting of wage floors that reshapes the price of sponsorship across H‑1B and PERM.

Quick reference: key items and dates

Final takeaway

The DOL’s submission to OMB signals a renewed and serious push to raise prevailing wages for H‑1B and PERM cases. Employers, universities, hospitals, and immigration practitioners should watch for the rule’s publication in the Federal Register, prepare to comment during the public‑notice period, and assess potential impacts on budgets, hiring plans, and ongoing sponsorships. Until the proposed text appears, the scope of change — from modest adjustments to a wide‑ranging rewrite — remains uncertain.