DOL's Routine Annual Prevailing Wage Data Refresh Took Effect July 1, 2026 — the Separate Proposed 21–33% Wage-Level Increases Have Not Yet Taken Effect
Employers sponsoring H-1B workers or PERM green cards are facing two separate wage developments that should not be confused. First, DOL's routine annual refresh of Occupational Employment and Wage Statistics (OEWS) prevailing wage data took effect July 1, 2026, and governs prevailing wage determinations and Labor Condition Applications filed on or after that date.1 Second — and separately — DOL's proposed rule to raise the wage-level percentiles by roughly 21–33% remains pending and is not reflected in the July 1 data.2
What Took Effect July 1, 2026
Each July 1, DOL's Office of Foreign Labor Certification refreshes the OEWS wage data used for H-1B, H-1B1, E-3, and PERM cases; the 2026–2027 dataset is valid through June 30, 2027.1 This is a data refresh, not a rule change: the four wage levels are still calculated under the existing methodology, with Level 1 at approximately the 17th percentile. Year-over-year movements track ordinary wage growth by occupation and location — meaningful for budgeting, but far smaller than the pending percentile restructuring. Salary benchmarks built on last year's figures should be re-verified before filing.
The Pending Proposed Rule
The larger budget threat is the proposed rule DOL published March 27, 2026 (Doc. 2026-06017). The 60-day comment period closed May 26, 2026, and a final rule is anticipated in late 2026 or early 2027.2 It would move each wage level to a substantially higher percentile of the OEWS distribution:
- Level 1 (entry): 17th → 34th percentile — roughly +33%, the largest jump
- Level 2: → 52nd percentile — roughly +24%
- Level 3: → 70th percentile — roughly +21%
- Level 4: → 88th percentile — roughly +22%
DOL estimates the average certified wage would rise about $14,000 per worker per year, though actual increases vary by occupation and location.3 The higher percentiles apply only if and when a final rule takes effect. The proposal preserves the option to use a compliant private wage survey instead of OEWS data — worth evaluating where government survey figures run high.
Why the Current Window Matters — Our View
Cases governed by prevailing wage determinations issued under the current percentile framework are generally expected to keep those wage levels; filings after a final rule's effective date would face the higher numbers. Because a PERM case takes months from prevailing wage request through recruitment to filing, employers planning sponsorships should start now. Entry-level roles are hit hardest — a Level 1 wage rising 33% may make some sponsorships financially difficult. Higher required wages also compound at the I-140 stage, where USCIS requires the employer to demonstrate ability to pay the proffered wage from the priority date until the beneficiary obtains the green card.
Employer Action Items
- Re-verify salary benchmarks against the OEWS data effective July 1, 2026 before filing prevailing wage requests or LCAs.
- Accelerate planned PERM cases to secure prevailing wage determinations under the current percentile framework.
- Model sponsored-role salaries against the proposed 34th/52nd/70th/88th percentiles to flag at-risk positions, especially entry-level.
- Budget for higher wage and ability-to-pay obligations in 2027 hiring and sponsorship plans.
- Ask counsel whether a compliant private wage survey could support specific occupations under the new rule.
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