Expert Analysis - Prevailing wage determination (PWD) DOL proposed prevailing wage rule: How employers can prepare for the impact Share this article LinkedIn Facebook X (Twitter) May 29, 2026 Article Authors Justin Parsons Partner Tysons The Department of Labor (DOL) has proposed a rule that will significantly increase the minimum prevailing wage levels for employer-sponsored foreign nationals and directly affect the hiring and retention of global talent across all industries. Although the rule is not yet final, employers should start planning how to address the challenges this proposed policy presents for their immigration programs and workforce operations. Following are insights on the proposed rule and practical steps HR and immigration professionals can take now to help adapt their talent strategy, align stakeholders and maintain compliance. What wage levels mean and why they matter Wage levels are distinct from actual salaries in that they compare workers across an overall occupational tier. Historically, wage level percentiles were established by Congress as an eligibility screen to help ensure that the employment of foreign workers under certain nonimmigrant visa programs, such as H-1B and PERM-based EB-2 and EB-3, does not adversely affect the wages or working conditions of U.S. workers. However, more recent policy developments, particularly the introduction of wage-based prioritization and substantial fees in the H 1B selection process, have paved the way for elevating wage levels, further influencing foreign worker visa eligibility and selection rates. Understanding the proposed rule and percentile breakdown The DOL’s March 2026 notice of proposed rulemaking (NPRM) preserves the four-tier wage level structure. Employers sponsoring foreign nationals must pay at least the prevailing wage for certain occupations by location, or the actual wage paid to similarly situated U.S. workers, whichever is higher. However, the rule would raise the wage percentiles associated with each of the four levels by about 17 to 21 percentile points. Ultimately, this would raise the wage floor across all levels and require employers to substantially increase foreign worker salaries to remain compliant. Current vs. proposed prevailing wage percentile increases Wage – Skill level Current percentile Proposed percentile Level I – Entry-level 17th 34th Level II – Qualified 34th 52nd Level III – Experienced 50th 70th Level IV – Fully competent 67th 88th To better understand how the prevailing wage level requirement works, think of the prevailing wage percentiles as data points that represent how a worker’s pay compares with the broader job market in a specific location. Employers use either government-sourced prevailing wage surveys, known as Occupational Employment and Wage Statistics (OEWS) surveys or alternative, private wage non-OEWS surveys as part of the wage determination process. The percentiles help reveal what percentage of workers in each job and area earn less than that specific wage. For example, if there are 100 people performing the same job in one location, ranked from the lowest-paid to the highest-paid, the percentiles help identify where a foreign worker fits within that range. Using government guidance on current wage percentiles and skill levels, the breakdown can be summarized as follows: • Level I (Entry-Level / 17th Percentile): The foreign worker is paid more than 17% of the people doing this job. This is typically a beginner or entry-level rate for someone needing close supervision and performing routine tasks. • Level II (Qualified / 34th Percentile): The foreign worker earns more than 34% of their peers. This applies to workers with some experience who perform moderately complex tasks. • Level III (Experienced / 50th Percentile): This is the median. The foreign worker earns more than half of the workers in that occupation and less than the other half. They possess specialized skills or knowledge and may have supervisory responsibilities. • Level IV (Fully Competent / 67th Percentile): The foreign worker earns more than 67% of similarly employed people. This role is for highly experienced workers with advanced skills or expertise, who typically have management or supervisory responsibilities. What is not changing (for now) Certain elements of the current system would remain unchanged under the proposed rule, including: Role classification. Rather than altering how roles are classified, job level classification would continue to rely on long-standing DOL guidance and role-based factors. Default government surveys. OEWS surveys remain the default wage data source. Private survey alternatives. Employers could continue using private or alternative wage surveys where appropriate. Impact of the proposed rule on employers and foreign workers The proposal would apply broadly across employment-based immigration programs that rely on prevailing wage determinations, including: · PERM labor certifications for EB 2 and EB 3 sponsorships · Labor Condition Applications (LCAs) for H 1B, H 1B1 and E 3 visas The rule would apply prospectively to prevailing wage determinations pending or filed after the effective date and to LCAs filed without an existing wage determination. Given that many H 1B filings are concentrated at wage levels I and II, increases at these levels are expected to have a substantive impact on employers’ cost structures and eligibility thresholds. If implemented, the proposal is expected to increase compensation requirements across all wage levels. Possible disproportionate impact on early-career talent Because the OEWS wage data source is segmented into four broad levels, roles are ultimately grouped within a wide-ranging occupational wage distribution that does not distinguish between more precise levels of experience. Consequently, entry-level roles could see the most significant percentage increases because they are benchmarked against a spectrum of workers that includes more experienced employees. The result could subject employers to inflated wage levels for early career roles. This dynamic is particularly significant for employers relying on F 1 student talent transitioning to H 1B status. Entry-level wage increases may affect sponsorship feasibility and hiring decisions for this population. What employers can do now Employers should consider reassessing sponsorship strategies and operational approaches to better prepare for this shifting immigration policy, including: Greater reliance on alternative wage surveys Heightened scrutiny of wage determinations by the DOL Increased documentation requirements supporting wage level selection Location-based strategies to manage wage exposure across markets Increased focus on Standard Occupational Classification (SOC) code selection, job level rationales and role structuring Proactive steps employers can take in advance of the final rule include: Inventorying current and projected filings that rely on OEWS data Modeling potential wage exposure across occupations and geographic locations Evaluating timing considerations for filing prevailing wage determinations under current rules Aligning internal stakeholders to account for potential changes Preparing recruiters and hiring managers to shift eligibility thresholds Reassessing early career sponsorship and pipeline planning Looking ahead Significant uncertainty remains regarding both the timing and final shape of the rule. Once the public comment period concludes on May 26, 2026, the proposed rule may undergo further revision and could also face legal challenges before being finalized and implemented. Employers should continue to monitor: Final regulatory outcomes and amendments Litigation developments Developing impacts on talent pipelines and workforce planning strategies While the proposed rule preserves the structural framework employers are familiar with, the increased wage thresholds signal a seismic shift in how prevailing wages function in practice. Wage levels are likely to play an increasingly central role, not only in compliance but also in broader workforce strategy and operations. Contact our team of legal experts to discuss how the forthcoming prevailing wage rule may directly impact your immigration program and practical preparation strategies.