U.S. Raises Minimum Wage for Entry-Level H-1B Visa Holders by $24,000

(UNITED STATES) — Prevailing wage rules set the floor for what many H-1B visa holders must be paid, and a new Department of Labor proposal would push that floor higher, especially for entry-level jobs.

For FY 2027, wage compliance remains one of the most contested parts of the H-1B process. Employers must pay at least the higher of the prevailing wage or the actual wage paid to similar workers. If the proposed rule takes effect, many employers could face materially higher salary obligations.

The proposal would raise minimum wages for H-1B positions by about 21% to 33%, depending on wage level. The sharpest jump would hit Level I roles. That is the wage level often used for recent graduates and early-career professionals.

Under the proposal, a typical Level I wage example would rise from about $73,000 to $97,000, an increase of roughly $24,000 per year. The stated aim is to curb wage suppression and reduce incentives to prefer foreign labor because it costs less.

⚠️ Employer Alert: Paying below the required wage can trigger back wage liability, civil penalties, petition issues, and DOL investigations.

Why prevailing wage matters in H-1B cases

Prevailing wage is not a suggested salary. It is a compliance requirement tied to the Labor Condition Application, or LCA. Before filing most H-1B petitions, the employer must obtain a certified LCA from the Department of Labor.

That LCA states the wage the employer will pay. It also confirms that H-1B workers will not be paid less than similarly employed workers at the company.

For employers, wage errors can affect the petition and later audits. For employees, the wage listed on the LCA is a document worth reviewing before work starts.

The Department of Labor argues current wage levels often fall below real market pay. Labor Secretary Lori Chavez-DeRemer said the proposal would help ensure foreign workers are paid wages that reflect market value while protecting U.S. workers’ pay and job opportunities.

The administration also argues that parts of the H-1B program have been used to replace American workers with lower-paid foreign labor. That point is especially focused on entry-level STEM jobs.

Current prevailing wage levels

The current four wage levels are tied to percentiles in wage survey data. They are generally linked to the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics survey.

These levels matter because they shape the minimum salary an employer must offer. A low wage level can also attract extra review if the job duties appear complex.

USCIS has paid close attention to Level I cases. That is especially true where the petition claims a specialty occupation but the wage suggests a basic role.

💼 Employee Tip: If your role requires a specific bachelor’s degree, compare the job duties and wage level. A mismatch can create petition risk.

How prevailing wage is determined

Prevailing wage depends on two main factors: the SOC code and the worksite location.

The SOC code classifies the occupation. For example, a Software Developer role may use a different wage structure than a Market Research Analyst role. The worksite location matters because wages differ by metro area.

A job in San Jose will usually carry a higher prevailing wage than the same title in Omaha. Remote and hybrid arrangements also matter because the listed worksite drives wage obligations.

Employers often use flcdatacenter.com to review Occupational Employment and Wage Statistics data. That tool lets users search by occupation and location and compare prevailing wage levels.

Accurate classification is essential. A weak SOC code match can cause trouble during LCA preparation, H-1B filing, or a later wage investigation.

What the proposed rule would change

The proposed rule would revise how wage levels are set. The Department of Labor says the updated method would use statistically grounded percentile thresholds from BLS survey data.

Today’s system roughly tracks the 17th, 34th, 50th, and 67th percentiles. The proposal would shift those thresholds upward to put H-1B pay closer to what U.S. workers earn in similar jobs.

The most discussed increases are below.

This debate is most intense at Level I. Critics of current wages say the level has been too low for specialty occupation jobs. Business groups often respond that entry-level professional roles need a realistic first-year wage benchmark.

That debate matters because many H-1B filings involve recent graduates. A sharper Level I increase could price some smaller employers out of sponsorship.

What happens if pay falls below the required wage

The consequences can be serious. Employers may owe back wages for the difference between what was paid and what should have been paid. The Department of Labor may also assess penalties.

Problems can arise even when the underpayment was not intentional. Common causes include wrong worksite listings, wrong SOC codes, unpaid nonproductive time, and salary cuts without an amended filing.

For H-1B visa holders, being underpaid can affect more than income. It can complicate status questions if the employer is not meeting LCA terms.

The rule is simple in concept. The employer must pay the required wage for the approved employment. That duty continues during the validity period, subject to lawful changes.

📅 Key Date: FY 2027 H-1B cap registration opened in March 2026, with selected cap cases filed from April 1, 2026 and employment starting October 1, 2026.

Status of the proposal

The wage rule is still a proposal, not a final rule. It is currently in a 60-day public comment period. After comments are reviewed, the Department of Labor can revise and finalize the regulation.

This is not the first attempt. A similar October 2020 effort was blocked by federal courts because it was issued as an interim final rule without adequate legal support.

That history matters. Employers should watch for a final rule date and any delayed effective date. Employees should also expect wage planning to remain unsettled until the rule is finalized.

Tips for accurate wage determination

Employers should start with the right job description. Broad titles and vague duties often lead to bad wage matches.

Use the actual worksite, not a headquarters address, unless that is where the employee will work. For remote arrangements, confirm whether multiple LCAs are needed.

Review the SOC code carefully. Two similar titles can produce different wage results.

Check flcdatacenter.com before registration and again before filing. Wage data can change, and location details matter.

Employees should ask for the job title, SOC code, worksite location, and offered salary. Those items help confirm whether the wage appears consistent.

FY 2027 H-1B timeline and basic filing fees

Employers should review every FY 2027 H-1B case for wage level, SOC code, and worksite accuracy before filing or extending status. Employees should compare the LCA wage, job duties, and location now, and track any final wage rule issued during 2026. The next fixed date for many cap-subject workers remains October 1, 2026, and all parties should monitor USCIS H-1B pages and DOL wage updates before that start date.

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