A proposed revision to prevailing wage methodology would substantially raise the required wage levels used in employment-based immigration filings that rely on Department of Labor (DOL) wage survey data. The proposal, which would primarily impact wage requirements for the H-1B, H-2B and PERM processes, cleared an important regulatory hurdle on February 20, 2026.  

Publication of the proposed rule in the Federal Register is expected in the near future.  

Wage Level Comparison: Current vs. Proposed Percentiles  

Under the existing four-tier wage structure, prevailing wage levels correspond to the following percentiles:

Level I: 17th percentile
Level II: 34th percentile
Level III: 50th percentile
Level IV: 67th percentile

While the specific details of the proposed rule are currently unavailable, if the proposal adheres to the prevailing wage methodology proposed by DOL in a similar rule in 2020, the wage levels would experience a substantial upward shift (28 percentiles) across all four wage levels:

Level I: 45th percentile
Level II: 62nd percentile
Level III: 78th percentile
Level IV: 95th percentile 

Practical Impact  

The most dramatic change would occur at Level I, which would move from the 17th to the 45th percentile — effectively shifting entry-level wages to nearly the midpoint of the occupational wage distribution.

Similarly:
Level II would move well above traditional lower-range compensation.
Level III would shift significantly above the median.
Level IV would approach the top of the occupational wage scale (95th percentile).

If implemented, these changes would materially increase required wage offers for many H-1B, H-2B and PERM employment-based filings, requiring employers to significantly alter their compensation structures. 

Status of the Proposed Regulation  

DOL’s proposed prevailing wage regulation has completed review by the Office of Management and Budget (OMB), an important required step before publication. However, the proposal has not yet been published in the Federal Register and the required 30-60-day notice and comment period has not begun.

Once the comment period has closed, DOL must then review and respond to all comments before issuing the final rule. The final regulation will include an effective date, typically 60 days after publication, to provide a transition period before implementation.

Until publication occurs, the current prevailing wage percentile structure (17th / 34th / 50th / 67th) remains in effect. 

Recommendations 

Because the proposed prevailing wage restructuring will not take effect for at least several months, employers may wish to consider options for mitigating its impact, including accelerating the filing of prevailing wage requests under the current wage structure and developing alternatives to the DOL’s prevailing wage system in the event the revised wage levels move forward.  

Organizations that rely on foreign talent should also proactively assess their compensation structures and options well in advance of the rule’s effective date. 

About Meltzer Hellrung 

Meltzer Hellrung advises employers and individuals nationwide on complex employment-based immigration matters, including H-1B, PERM labor certification, and strategic workforce planning. Our team monitors regulatory developments closely to help clients anticipate change, manage risk, and maintain compliance in a rapidly evolving and increasingly challenging immigration environment.

If you have questions about how the proposed prevailing wage restructuring may affect your organization, please contact our office for further guidance.