The Department of Labor (DOL) has proposed a rule to increase the prevailing wage levels used in employment-based immigration petitions, including L-1, EB-1C, and H-1B categories. This adjustment aligns with DOL’s ongoing efforts to better reflect current labor market conditions and ensure foreign workers receive appropriate compensation. For Chinese corporate executives, investors, and their U.S. employers, this change signals a need to reexamine wage-related documentation and petition strategies.

From our practical experience, wage level is a critical factor in USCIS’s adjudication, especially for H-1B and L-1B petitions where the Labor Condition Application (LCA) must demonstrate compliance with DOL wage rules (see 20 CFR §655.731). EB-1C petitions, while exempt from LCA, still require proof that the executive or manager is compensated at a level consistent with U.S. industry standards to satisfy USCIS’s ‘‘managerial capacity’’ criteria under 8 CFR §204.5(j)(5). The proposed increase in wage levels may lead to more Requests for Evidence (RFEs) if the submitted wage documentation appears outdated or insufficient.

We recently assisted a fintech client whose L-1B extension was initially flagged due to wage discrepancies. By promptly updating the wage analysis with a new prevailing wage report reflecting the proposed DOL standards, we successfully overcame the RFE without delaying the project timeline. This case underscores the importance of proactive wage verification before filing.

Actionable steps for clients include: First, immediately logging into the DOL’s Foreign Labor Certification Data Center to verify current prevailing wage levels applicable to their SOC code and geographic location. Second, coordinating with the company’s HR department to update or file new LCAs reflecting the higher wage thresholds. Since LCA processing typically takes 7-10 business days, early preparation is crucial to avoid filing delays. Third, for EB-1C applicants, preparing enhanced compensation evidence such as payroll records and industry salary surveys to meet USCIS’s managerial salary expectations.

Attorney Insight
From a strategic standpoint, we recommend that clients planning to file H-1B petitions for the 2025 cap season or L-1 petitions in the coming months incorporate the proposed wage increases into their budgeting and case planning. While the rule is not yet final, early alignment reduces the risk of RFE and potential denials. For EB-5 investors, although wage levels are less directly relevant, portfolio companies employing key executives under L-1 or H-1B should be mindful of these changes.

Looking ahead, based on historical policy implementation timelines, we predict the final rule could take effect as early as late 2024. Clients should monitor USCIS and DOL updates closely. Our team will continue to track the official wage level tables and provide tailored guidance once the new standards are finalized.

In summary, the DOL’s wage level proposal reflects a broader trend toward stricter wage scrutiny in employment-based immigration. For Chinese executives and investors, this means a more rigorous review of compensation evidence but also an opportunity to demonstrate compliance and strengthen petitions. Taking timely action to update wage documentation and coordinate with HR will be key to a smooth filing process.

What this means for you: Review your wage data now, work with HR to file updated LCAs if needed, and consider the timing of your next petition submission to stay ahead of this regulatory change.