A US Department of Labor (DOL) regulation that could increase prevailing wage requirements for H-1B visa holders and employment-based green card applicants has reached the final stage of federal review, potentially paving the way for higher salary thresholds for employers sponsoring foreign workers.
The final rule has been submitted to the Office of Management and Budget (OMB), which is reviewing the regulation before its publication in the Federal Register, according to November 9 update. The regulation would revise prevailing wage minimums under the federal government’s four-level wage system, affecting employers hiring foreign workers through the H-1B , H-1B1 and E-3 visa programs, as well as those sponsoring workers through the PERM labor certification process. The March 2026 proposal sought to raise the wage benchmarks across all four categories. In its March 26 announcement, the department said the changes would help align compensation for foreign workers with wages paid to similarly employed US workers and prevent foreign labor from undermining domestic wages and employment opportunities. The timing could make the regulation relevant to the next H-1B cap season, which begins in late winter or early spring 2027, although the actual impact will depend on the final rule’s publication and effective dates, according to Fragomen.
Under the existing system, prevailing wages are divided into four levels based on experience, skills and job requirements. The final wage levels have not yet been disclosed, and the published regulation could differ from the March proposal.
