Under INA §212(p)(4), the DOL periodically updates the prevailing wage standards based on the Bureau of Labor Statistics (BLS) Occupational Employment Statistics data. Employers are advised to consult the latest compliance requirements on the USCIS website (uscis.gov) before filing to ensure they meet the ability-to-pay standard [2]—the separately proposed 21–33% wage-level increases have not yet taken effect
Employers sponsoring H-1B employees or PERM green cards currently face two separate and distinct wage-policy developments that should not be confused.1 Second—and independent of the first—the DOL's proposed rule to raise the wage-level percentiles by approximately 21–33% remains under review and is not reflected in the July 1 data.2
What Takes Effect on July 1, 2026
1 This is a data update, not a rule change: the four wage levels are still calculated under the existing methodology. Under INA §212(p)(4), the four prevailing wage levels are derived from the BLS Occupational Employment Statistics (OES) data according to a statutory formula, and employers should ensure that the offered salary meets the statutory standard before filing. The year-over-year data movement reflects normal wage growth across occupations and geographic areas—material for budget planning, but far smaller in magnitude than the structural percentile adjustment still under review. Compensation benchmarks established on last year's data should be re-verified before filing.The Proposed Rule Still Under Review
2 The rule would substantially raise each wage level to a higher percentile of the OEWS distribution:- Level I (entry level): 17th percentile → 34th percentile—approximately +33%, the largest increase
- Level II: → 52nd percentile—approximately +24%
- Level III: → 70th percentile—approximately +21%
- Level IV: → 88th percentile—approximately +22%
The DOL estimates that the average increase in certified wages would be approximately $14,000 per employee per year, though the actual increase varies by occupation and geographic area.3 The higher percentiles would apply only when (if) a final rule takes effect. The proposed rule preserves the option for employers to use a compliant private wage survey in place of the OEWS data—worth evaluating where the government survey data runs high.
Why the Current Window Matters—Our View
Cases that obtain a prevailing wage determination under the current percentile framework are generally expected to retain the original wage levels, whereas applications filed after the effective date of a final rule would be subject to the higher wage standards. Because a PERM case takes several months to move from the prevailing wage request through the recruitment process to formal filing, employers planning to sponsor should begin immediately. Entry-level positions are hit hardest—a 33% increase in Level I wages could make some sponsorships financially untenable. Higher statutory wage requirements also have a compounding effect at the I-140 stage: under 8 CFR § 204.5(g)(2) and USCIS official guidance, an employer must demonstrate its Ability to Pay the proffered wage through federal tax returns, audited financial statements, or annual reports, with the specific evidentiary requirements available on the USCIS website at uscis.gov [2]; at the same time, given the potentially lengthy wait times, applicants are advised to monitor the Visa Bulletin published at travel.state.gov closely to plan the green card application timeline appropriately [1].
Employer Action Points
- Accelerate planned PERM cases to obtain a prevailing wage determination under the current percentile framework.
- Model the compensation of sponsored positions against the proposed 34th/52nd/70th/88th percentiles to identify high-risk positions, especially entry-level roles.
- Budget for higher wage standards and ability-to-pay obligations in 2027 hiring and sponsorship planning.
- Consult counsel to assess whether a private wage survey compliant under the new rule can be used for particular occupations.