DOL Revives Major Wage Overhaul for H-1B, PERM and Other Programs – New Proposal Sent to OMB for Review in March 2026

DOL revives major wage overhaul for H-1B, PERM and other programs – new proposal sent to OMB for review in March 2026.

Washington, D.C., March 25, 2026 — The U.S. Department of Labor has quietly resubmitted a revised proposal to overhaul wage rules for the H-1B, H-1B1, E-3, and PERM labor certification programs to the Office of Management and Budget (OMB) for inter-agency review.

This marks the second time in recent months that DOL has sent a wage-related rule to OMB. An earlier version cleared review in February 2026 and was expected to be published for public comment shortly afterward. However, the agency has since made changes and restarted the review process, suggesting the final proposal may differ from the initial draft.

While the exact content remains confidential until it is published in the Federal Register, the proposal is widely expected to restructure the prevailing wage system used across these programs, potentially raising the minimum wage floors that employers must meet when sponsoring foreign workers.

Background: A Return to the 2021 Debate

The move echoes a controversial regulation finalized during the first Trump administration in 2021. That rule aimed to significantly increase wages at all four prevailing wage levels:

• Level I: from the 17th to the 35th percentile

• Level II: from the 34th to the 53rd percentile

• Level III: from the 50th to the 72nd percentile

• Level IV: from the 67th to the 90th percentile

The 2021 rule faced immediate legal challenges and was ultimately withdrawn by the Biden administration after several delays. The current proposal may follow a similar direction, though DOL has not confirmed whether it is identical to the earlier version.

What This Could Mean for Employers and Workers

If the new rule advances in a form similar to 2021, it would raise the bar for H-1B sponsorship and PERM labor certification. Employers would need to pay higher wages to foreign workers in many occupations, particularly in tech, engineering, healthcare, and other professional fields where Level I and Level II wages are commonly used.

Potential impacts include:

• Higher labor costs for companies sponsoring H-1B and green card candidates

• Stronger protection for U.S. workers in lower wage brackets

• Possible reduction in H-1B approvals for entry-level or mid-level positions

• Increased focus on truly specialized roles that justify higher pay

The timing is notable: H-1B registration for FY 2027 is currently underway, and many employers are simultaneously navigating PERM backlogs that already average 15–18 months.

Next Steps and Timeline

Once OMB completes its review, the proposal will be published in the Federal Register with a public comment period expected to last 30 or 60 days. After reviewing comments, DOL would issue a final rule, which could take several additional months.

Immigration attorneys and industry groups are closely watching the process. Many expect the proposal to spark intense debate, similar to the 2021 experience, with business associations likely arguing that higher wages could harm competitiveness, while labor groups may support stronger wage protections.

For the latest updates on H-1B, PERM processing times, prevailing wage changes, and compliance strategies in 2026, read our detailed guide

Frequently Asked Questions

When will we know the exact details of the new wage rule?

After OMB review is complete, the proposed rule will be published in the Federal Register. No firm date has been announced.

Will the rule apply retroactively?

Proposed rules typically apply prospectively. Existing H-1B and PERM cases are usually grandfathered under the rules in effect at the time of filing.

Does this affect current H-1B holders?

Current visa holders are generally unaffected until their next extension or change of status filing.

This latest development signals that wage reform remains a high priority for the Department of Labor. Employers sponsoring foreign talent should monitor the Federal Register closely and prepare for potential increases in required wage levels later this year.