H-1B Prevailing Wage Levels Are Set by DOL Using OEWS Data, Four-Tier System

USCIS expects to finish FY 2027 H-1B cap selections by March 31, 2026. Wage levels now impact selection odds and compliance is critical for the 85,000 slots.

H-1B Prevailing Wage Levels Are Set by DOL Using OEWS Data, Four-Tier System
Key Takeaways
  • USCIS will finish FY 2027 H-1B selections by March 31, 2026, for the 85,000 available slots.
  • Wage levels now impact lottery selection odds, with higher levels receiving more entries in the system.
  • The Department of Labor proposed significant wage increases on March 27, 2026, affecting future filing costs.

FY 2027 H-1B cap selection results are expected by March 31, 2026. This year’s season matters for two reasons. USCIS still limits cap-subject approvals to 85,000 cases, and wage level review now carries more weight across registration, the LCA, and the petition.

For employers, this is not just a lottery issue. It is also a wage compliance issue. For employees, selection is only the first step. The offered role must still qualify as a specialty occupation, and the salary must meet H-1B rules.

H-1B Prevailing Wage Levels Are Set by DOL Using OEWS Data, Four-Tier System
H-1B Prevailing Wage Levels Are Set by DOL Using OEWS Data, Four-Tier System

📅 Key Date: USCIS is expected to finish FY 2027 H-1B cap selections by March 31, 2026.

The core wage rule remains simple. H-1B employers must pay the higher of the prevailing wage or the actual wage paid to similarly qualified workers in the same occupation and area. The Department of Labor uses OEWS wage data, the matching O*NET-SOC occupation, the worksite location, and the job requirements to set the prevailing wage.

FY 2027 H-1B cap timeline

FY 2027 Milestone Date
Registration period Early-to-mid March 2026
Selection notification By March 31, 2026
Filing window opens April 1, 2026
Filing window closes June 30, 2026
Earliest employment start October 1, 2026

The annual cap stays the same:

Cap Type Number Available
Regular cap 65,000
U.S. advanced degree exemption 20,000
Total cap-subject slots 85,000

USCIS also continues the one-registration-per-beneficiary rule. That means one person should have only one effective chance in the selection system, even if more than one employer files a registration.

Why wage levels matter more this year

The H-1B filing stage always required wage support. For FY 2027, that issue has become more visible. The prevailing wage is set through DOL methods using OEWS data and a job match under the O*NET-SOC system.

That match looks at the occupation, metro area, education, experience, skills, and supervision level. Employers can request a formal Prevailing Wage Determination through the National Prevailing Wage Center. They can also use the OFLC wage data directly if the position is classified correctly.

DOL assigns one of four wage levels. The level starts at Level I and rises if the job requires more than the occupation’s normal baseline.

Wage Level Current OEWS Percentile Typical Position Profile
Level I 17th percentile Entry-level, close supervision
Level II 34th percentile Qualified, some independence
Level III 50th percentile Experienced, more autonomy
Level IV 67th percentile Advanced skills, minimal supervision

A Level I wage can still be valid. But it often draws closer review if the job description sounds advanced. That tension appears often in software, analytics, engineering, and client-facing roles.

Employer Alert

A broad job title with a low wage level is a common problem area in H-1B review.

Actual wage vs. prevailing wage

The prevailing wage is not the only number that matters. Employers must also look at the actual wage.

Actual wage means what the employer pays other workers with similar duties and qualifications. The comparison should consider education, experience, seniority, and performance. The employer must keep an Actual Wage Memorandum in the public access file.

This point matters in audits and investigations. A case can meet the OEWS-based prevailing wage and still raise issues if the employer pays similar U.S. workers more for the same role.

For employees, this is worth checking early. Ask which SOC code, worksite, and wage level the employer used. Ask whether the offered salary is above both the prevailing wage and the internal actual wage range.

Proposed DOL wage increases published March 27, 2026

A major wage development arrived just before selection results. On March 27, 2026, DOL published a proposed rule that would raise prevailing wage percentiles across all four levels.

Wage Level Current Percentile Proposed Percentile Estimated Increase
Level I 17th 34th ~33%
Level II 34th 52nd ~24%
Level III 50th 70th Not specified
Level IV 67th 88th ~21%

DOL indicated the average certified wage could rise by about $14,000 per year. Public comments remain open for about 60 days from March 27, 2026. No final rule is in effect yet.

This proposal does not change selections already made for FY 2027. It does, however, affect planning for future filings, extensions, amendments, and next year’s registrations.

📊 FY 2027 Stats: The cap remains 85,000. As of March 30, 2026, USCIS had not yet released final FY 2027 registration totals or the selection rate.

Can the wage level change after registration?

Yes, but only with support and proper filings.

If the job duties change, the worksite changes, or the minimum requirements change, the employer may need a new LCA. That can also change the wage level. If the role grows more complex, a higher level may apply. If the location changes, the prevailing wage may rise or fall.

The employer can also request a new prevailing wage determination or recalculate using current OFLC wage data. In every case, the employer must still pay the higher of the new prevailing wage or the actual wage.

The revised Form I-129, effective April 1, 2026, also raises the stakes. Wage level information should stay consistent across the registration, certified LCA, and H-1B petition.

For FY 2027, USCIS gives more weight to higher wage levels in the lottery. Under that approach, Level IV receives four entries, Level III three, Level II two, and Level I one. That makes wage classification a selection issue, not only a compliance issue.

What happens next after selection or non-selection

If selected, the employer can file the H-1B cap petition from April 1 through June 30, 2026. The filing should include the certified LCA, wage support, specialty occupation evidence, and proof the beneficiary meets the degree requirement.

If not selected, the case cannot proceed as a cap-subject H-1B this fiscal year unless USCIS later runs additional selections.

Employees and employers should then review other options:

Alternative Best Fit Lottery Required
Cap-exempt H-1B Universities, nonprofits, research entities No
O-1 High-achieving workers with documented acclaim No
L-1 Intracompany transfers No
TN Canadian and Mexican professionals in listed occupations No
F-1 STEM OPT extension Eligible students needing more work time No

For next season, employers should expect registration to open again in March 2027, unless USCIS changes the schedule.

Employee Tip

If you were not selected, ask whether a cap-exempt H-1B, O-1, L-1, or STEM OPT extension fits your case before status deadlines arrive.

Compliance points that matter after the lottery

Selection does not remove wage duties. Employers must keep wage records current during the entire H-1B period. That includes the public access file, the Actual Wage Memorandum, and support for the prevailing wage level.

DOL audits can review those records. So can USCIS during extensions, amendments, and site visits. Wage issues often surface after a location move, title change, promotion, or client-site placement.

Employers should review each selected case before filing. Confirm the SOC code, OEWS wage level, actual wage analysis, and worksite details. Employees should confirm the offered salary, work location, and job duties match the registration and LCA.

Employers should finalize LCAs now, review whether any selected case needs a formal prevailing wage check, and prepare complete filings before June 30, 2026. Employees should verify the role title, SOC code, wage level, worksite, and salary before the petition is filed, then track the October 1, 2026 start date and any status gap issues. Both sides should monitor USCIS cap-season updates and DOL wage developments closely.

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Oliver Mercer

As the Chief Editor at VisaVerge.com, Oliver Mercer is instrumental in steering the website's focus on immigration, visa, and travel news. His role encompasses curating and editing content, guiding a team of writers, and ensuring factual accuracy and relevance in every article. Under Oliver's leadership, VisaVerge.com has become a go-to source for clear, comprehensive, and up-to-date information, helping readers navigate the complexities of global immigration and travel with confidence and ease.

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