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Prevailing wage rule 2026: DOL's H-1B and PERM wage plan is still proposed

As of October 21, 2026, the Labor Department's plan to raise H-1B and PERM prevailing wages is still a proposed rule. Comments closed on May 26, 2026, no final rule has been published, and no final version is listed as under White House review, so today's wage levels still apply.

A person stacking coins into rising piles, representing the prevailing wage levels in DOL's proposed rule

The short answer on the prevailing wage rule 2026: as of October 21, 2026, the Labor Department's plan is still only a proposal. The notice of proposed rulemaking, which would raise the minimum wages employers must offer in PERM and H-1B cases, was published on March 27, 2026, and its comment period closed on May 26, 2026 (91 FR 15454). The Federal Register lists no final rule under the rule's identifier, RIN 1205-AC30 (Federal Register API, RIN 1205-AC30), and the rule is not among the regulatory actions OIRA lists as pending review (reginfo.gov, OIRA review list).

That means the existing four wage levels still govern prevailing wage determinations and Labor Condition Applications today. This post explains what the proposal would do, where it sits in the rulemaking process, and what to watch for.

Key facts
  • The DOL prevailing wage rule, RIN 1205-AC30, was published as a proposed rule on March 27, 2026, at 91 FR 15454.
  • It would raise Level I from about the 17th to the 34th percentile and Level IV from about the 67th to the 88th percentile.
  • It covers PERM labor certification and the Labor Condition Applications used for H-1B, H-1B1 and E-3 workers.
  • The public comment period closed on May 26, 2026.
  • As of October 21, 2026, no final rule has been published and the rule is not on OIRA's list of rules under review.
  • As proposed, it would not reopen prevailing wage determinations, PERM applications or LCAs approved before its effective date.
  • OFLC's 2026-27 wage data took effect July 1, 2026 and runs through June 30, 2027.

What is the DOL prevailing wage rule?

The rule is titled "Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States," issued by the Employment and Training Administration under docket ETA-2026-0001 (91 FR 15454). It would amend 20 CFR parts 655 and 656, the rules for Labor Condition Applications and permanent labor certification (91 FR 15454).

It covers PERM cases for EB-2 and EB-3 green cards and the H-1B, H-1B1 and E-3 nonimmigrant programs, because DOL uses one four-tier wage structure across all of them (91 FR 15454). The levels come from the Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) survey (91 FR 15454).

The rulemaking started with Proclamation 10973, signed September 19, 2025, which ordered the Labor Secretary to act (Proclamation 10973, 90 FR 46027):

"The Secretary of Labor shall initiate a rulemaking to revise the prevailing wage levels to levels consistent with the policy goals of this proclamation consistent with section 212(n) of the INA, 8 U.S.C. 1182(n)." Proclamation 10973, sec. 4(a), 90 FR 46027 (September 24, 2025)

What wage levels would the proposed rule set?

DOL proposes to raise each of the four levels, measured as percentiles of the OEWS wage distribution for the occupation and area (91 FR 15454):

Wage levelCurrent (approx.)Proposed (approx.)
Level I17th percentile34th percentile
Level II34th percentile52nd percentile
Level III50th percentile70th percentile
Level IV67th percentile88th percentile

DOL would set Levels I and IV directly and keep using the statutory formula for Levels II and III, dividing the gap between Levels I and IV by three (91 FR 15454). The Immigration and Nationality Act requires that a government wage survey "provide at least 4 levels of wages commensurate with experience, education, and the level of supervision," as the proposal itself quotes (91 FR 15454).

DOL says the existing levels have been in place for more than 20 years (91 FR 15454). It estimates that moving Level I from the 17th to the 34th percentile raises the Level I prevailing wage by about 33.39%, and its model yields an estimated annual wage transfer of about $14,000 per worker (91 FR 15454). Its upper-bound estimate of annualized transfer payments is $6.56 billion at a 7 percent discount rate (91 FR 15454).

Where is the prevailing wage rule 2026 in the rulemaking process?

The proposal has cleared every step up to public comment, and nothing since. Here is the status of each piece as of October 21, 2026.

ItemDocumentStatus on October 21, 2026
Presidential directiveProclamation 10973, 90 FR 46027Signed September 19, 2025 (90 FR 46027)
OIRA review of the proposalRIN 1205-AC30Received December 17, 2025; concluded February 20, 2026, "Consistent with Change" (reginfo.gov)
Proposed rule91 FR 15454Published March 27, 2026; comments closed May 26, 2026 (91 FR 15454)
Regulatory agendaDOL Agenda of Regulations, 91 FR 53020Listed at the Proposed Rule Stage (91 FR 53020)
Final ruleNoneNot published (Federal Register API); not on the OIRA pending list (reginfo.gov)

The Unified Agenda entry for RIN 1205-AC30 lists only the proposed rule and the end of its comment period in its timetable, with no projected date for a final rule (reginfo.gov, RIN 1205-AC30). The agenda marks the rule as economically significant and major (reginfo.gov, RIN 1205-AC30).

The White House still expects a final version. In extending the H-1B entry restriction on September 18, 2026, the President wrote (Proclamation 11069, 91 FR 60497):

"The rule, once finalized, will better align prevailing wage levels with wages paid to similarly employed and located American workers and will strengthen overall program integrity." Proclamation 11069, 91 FR 60497 (September 23, 2026)

Has DOL tried to raise prevailing wages before?

Yes, in 2020, and it did not survive. DOL published an interim final rule on October 8, 2020 that raised the levels to about the 45th, 62nd, 78th and 95th percentiles without advance notice and comment (91 FR 15454). In Chamber of Commerce, a district court set that rule aside on December 1, 2020, on the notice-and-comment claim (91 FR 15454).

A follow-up final rule of January 14, 2021 used the 35th and 90th percentiles for Levels I and IV, and DOL later delayed its effective date (91 FR 15454). The Northern District of California vacated it on June 23, 2021, at DOL's unopposed request, and DOL formally removed it on December 13, 2021 (91 FR 15454).

This time DOL went through notice and comment first, which removes the procedural problem that sank the 2020 rule. Substantive objections remain. In its May 25, 2026 comment, the National Foundation for American Policy argued that the proposal violates immigration law and reported only a 1% average difference between current Level I wages and Willis Towers Watson private survey data for a sample of entry-level H-1B jobs (NFAP comment to DOL). That is an advocacy group's view, not a court ruling.

Which wage levels apply to PERM and H-1B filings right now?

The current levels do. OFLC refreshed the underlying OEWS data for the wage year running July 1, 2026 through June 30, 2027, based on BLS's May 2025 estimates (OFLC Technical Release Notes, Wage Year 2026-27). That annual data refresh is separate from the proposed rule, which would change how the four levels are computed from the OEWS data (91 FR 15454).

For PERM, a prevailing wage determination is valid for at least 90 days and at most one year, and the employer must file or start recruitment within that window (20 CFR 656.40(c)).

Would the new rule apply to cases already filed?

As proposed, new levels would apply to prevailing wage requests pending or filed on or after the rule's effective date, and to LCAs filed on or after that date that rely on OEWS data, unless the employer obtained a prevailing wage determination before that date (91 FR 15454). Approved cases would be left alone:

"Conversely, the Department does not propose to apply the new regulations to any previously-approved prevailing wage determinations, permanent labor certification applications, or LCAs, either through reopening or through issuing supplemental prevailing wage determinations or through notices of suspension, invalidation, or revocation." 91 FR 15454, 15478 (March 27, 2026)

DOL also considered, and rejected, a two-year delay for small businesses and nonprofits (91 FR 15454). A final rule can differ from the proposal on any of these points.

How does this connect to the weighted H-1B lottery?

The two are separate rules that use the same wage levels. DHS's weighted selection rule, effective February 27, 2026, favors registrations for higher-paid workers (90 FR 60864). In the FY 2027 selection, offers at the lowest wage level made up only 17.8 percent of selections, according to Proclamation 11069 (91 FR 60497). Our weighted H-1B lottery guide explains the mechanics, and our H-1B $100,000 fee status update covers the entry restriction that Proclamation 11069 extended.

What this means for you

For now, nothing changes in your filing. A rule that is proposed has no legal effect on a prevailing wage determination or LCA issued today.

The risk is timing. If you are in a PERM case, a final rule could land between your prevailing wage request and your filing, so ask your attorney how the effective-date terms would apply to your case. DOL also has a second PERM rule, RIN 1205-AC29, under OIRA review (reginfo.gov, OIRA review list); our post on rules under White House review tracks it.

Your checklist
  • Note your prevailing wage determination date and its validity window.
  • Watch the OIRA list for RIN 1205-AC30 moving to a final rule stage.
  • Check the Federal Register for a final rule and its effective date.
  • If you are early in the process, ask whether an employer-independent route fits, as compared in our EB-2 NIW vs PERM guide and our list of green card routes without PERM.

Where to start

If a higher wage floor could make your employer's PERM sponsorship harder, it is worth knowing whether you qualify for a self-petition. Our free evaluation checks your profile against EB-1A and EB-2 NIW criteria, and Frank finds real opportunities for the criteria you are missing. When you are ready, petitions are reviewed and filed by our partner law firm, Lai & Turner.

Sources

All checked October 21, 2026.

Frequently asked questions

Is the 2026 DOL prevailing wage rule final?

No. As of October 21, 2026, the Labor Department's prevailing wage rule (RIN 1205-AC30) is still a proposed rule. It was published on March 27, 2026, and comments closed on May 26, 2026. The Federal Register shows no final rule, and the rule does not appear on OIRA's list of regulatory actions under review. Employers still use the existing four wage levels for PERM prevailing wage determinations and H-1B Labor Condition Applications.

What wage levels would the proposed DOL rule set?

The proposal would move Level I from about the 17th to the 34th percentile of the Bureau of Labor Statistics OEWS wage distribution, Level II from the 34th to the 52nd, Level III from the 50th to the 70th, and Level IV from the 67th to the 88th. Levels II and III would still be calculated with the formula in the Immigration and Nationality Act, which splits the gap between Levels I and IV into thirds.

Would the new prevailing wage rule affect my approved PERM or prevailing wage determination?

As proposed, no. The Department of Labor said it does not propose to apply the new methodology to prevailing wage determinations, PERM applications or Labor Condition Applications approved before the rule's effective date. The new levels would apply to determination requests pending or filed on or after that date. A final rule could change these terms, so your attorney should check the final text if one is published.

How will I know when the prevailing wage rule is about to become final?

Watch two public sources. The OIRA list on reginfo.gov shows rules sent to the White House for review, and the proposed version of this rule went through that review from December 17, 2025 to February 20, 2026. The Federal Register is where a final rule would be published with its effective date. Neither shows a final prevailing wage rule as of October 21, 2026.

Does the prevailing wage proposal affect the weighted H-1B lottery?

The weighted H-1B selection rule, effective February 27, 2026, gives more weight to registrations at higher OEWS wage levels. The Labor Department's proposal is a separate rulemaking that would change how those wage levels are calculated. The proposal does not finalize anything, so the FY 2027 lottery ran on the current levels. How a final wage rule would interact with future lotteries is something to check in the final text.

Green Card Guide AI is not a law firm and this article is not legal advice. It describes evidence-building strategy in general terms; your attorney determines what belongs in your petition and how it's argued.

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