DOL proposes Rule to dramatically increase wage obligations for Employers

On March 27, 2026, the Department of Labor introduced the Proposed Rule, “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States,” which would dramatically increase wage obligations for employers sponsoring H-1B/E-3 workers and green card applicants under the PERM program. 

For background, the Department of Labor uses four wage levels within each occupation and metropolitan area to determine how much a foreign worker should be paid under the H-1B/E-3 and PERM programs. These determinations are based on the worker’s education, work experience, supervision of workers, and other job duties. Current regulations require that entry-level foreign workers under Wage Level I  earn wages at the 17th percentile within their occupation; Level II workers with more experience must earn wages at the 34th percentile, Level III workers should meet the 50th percentile, and Level IV workers should meet the 67th percentile. 

Under the Proposed Rule, the Department of Labor would increase the percentile requirements as follows:  

• Level I: from 17th to 34th  

• Level II: from 34th to 52nd  

• Level III: from 50th to 70th 

• Level IV: from 67th to 88th  

The Department of Labor states that these wage level increases “aim to better align prevailing wage levels with the wages paid to U.S. workers who are similarly employed in the occupation and area of intended employment.” However, these increases will likely result in wage requirements for foreign workers that are substantially higher than what comparable US workers are paid in the same occupation and metropolitan area, making the employment of foreign workers at comparable wages much more difficult. 

The Department of Labor will accept public comments on the Proposed Rule until May 26, 2026. To read the Proposed Rule and leave a comment, see the Federal Register website here.