U.S. Proposes New Wage Threshold for H-1B & Green Cards

On March 27, 2026, the U.S. Department of Labor (DOL) introduced a proposed rule called “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States.” This rule aims to change how the government defines “fair wages” for foreign workers, affecting both temporary visas like H-1B and permanent options such as PERM-based green cards.

To see why this proposal matters, it helps to start with the law. The Immigration and Nationality Act (INA) says the U.S. government cannot allow foreign workers unless it confirms their jobs “will not adversely affect the wages and working conditions of workers in the United States.”

This idea of protecting the domestic labor market is at the heart of the new rule. Here, as always, our EB-1A consultants have presented a detailed breakdown of this rule.

Why the U.S. Government is changing wage rules now

The DOL’s proposal comes from a growing concern that the current wage system does not match real market conditions. The Department says that prevailing wage levels for entry- and mid-level jobs are set “dramatically below” what similar U.S. workers earn.

This gap has led to bigger issues. The rule cites internal analysis showing that most H-1B labor condition applications are in the lower wage tiers. About 63% of certified applications are in Level I and Level II, which are well below average market wages.

This means the current system may encourage employers to hire foreign workers at lower wages instead of competing for U.S. workers at market rates. The DOL says the proposal is meant to fix “wage suppression” and bring the rules back in line with the law’s intent.

What exactly is changing in the wage system?

The main change in the proposal is an update to the prevailing wage structure, which sets the minimum salary employers must pay foreign workers.

Right now, wages are split into four levels based on percentiles in government wage data (OEWS), but these percentiles are fairly low. The new proposal would move each level much higher:

• Level I (entry-level): from 17th percentile → 34th percentile
• Level II: from 34th → 52nd percentile
• Level III: from 50th → 70th percentile
• Level IV: from 67th → 88th percentile

This is a major change. It redefines what counts as “entry-level” pay in the U.S. labor market.

According to the DOL’s own estimates, these changes could raise wages by 20% to 33%, with entry-level jobs seeing the biggest increases.

In practice, a job that used to be considered entry-level may now need to pay closer to the median wage for that occupation.

A unified framework across temporary and permanent immigration

The most important part of the proposal is that it applies the same wage rules across different visa categories. The new wage method would cover H-1B, H-1B1, and E-3 visas, as well as PERM labor certification cases for EB-2 and EB-3 green cards.

This consistency is on purpose. The DOL wants to stop employers from picking one immigration path over another just because of lower wage requirements. Hence, by setting the same wage floors for all programs, the rule aims to close these gaps and prevent “program shopping.”

The role of prevailing wage: more than just a salary floor

The idea of a “prevailing wage” is central to the system. It acts as a legal minimum to ensure foreign workers get paid at least as much as similar U.S. workers in the same area.

Employers must attest not only that they will offer this wage but also that:

• The wage is used during recruitment
• It is maintained at the time of hiring
• It is actually paid during employment

The DOL raised the minimum to change how employers make decisions. Companies will need to adjust their hiring, budgets, and workforce planning to account for higher pay levels.

The question of employer flexibility

Even though the proposal is strict, it does not remove all employer flexibility. Companies can still use private wage surveys instead of government data in some cases, like specialized jobs.

However, the DOL says these practices will be watched more closely, since there are concerns that private surveys have sometimes been used to justify lower wages. The DOL estimates that average wages for sponsored workers could increase by approximately $14,000 per year per employee.

This could mean a significant increase in for employers, more so for those who rely on a lot of visas. On the other hand, the foreign workers may be impacted by this new policy positively or negatively. For instance, experienced professionals may get higher pay, but entry-level candidates might see fewer job openings as companies adjust their hiring plans.

What happens next?

As a proposed rule, this measure is not yet final. It is currently open for a 60-day public review period ending May 26, 2026.

After reviewing feedback, the DOL may revise and finalize the rule, possibly as soon as mid-2026. However, since similar wage rules have often faced legal challenges in the past, more lawsuits are likely before the rule is fully implemented.

In a nutshell, the DOL is attempting to realign immigration policy with the purpose of protecting U.S. workers and giving them a clear priority.

At GCEB1, our EB-1A consultants systematically write about the latest policy changes and updates in the immigration landscape. Stay tuned to our blog section to get all the latest updates. We wish you a safe and stress-free immigration journey ahead.

Sources & Further Readings

1. “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States." Federal Register, March 27, 2026.
2. Ogletree Deakins.“DOL Proposed Rule Would Increase Wage Levels for H-1B Visas, PERM Labor Certifications." March 24, 2026.
3. “US Proposes Sharp Hike in H-1B, PERM Wage Thresholds; May Adversely Impact Entry-Level Hiring." The Times of India, March 28, 2026.