Just cleared OMB: U.S. H-1B prevailing wage increase 2026 set to reshape employment immigration
- 22 hours ago
- 3 min read
Updated: 28 minutes ago
Published: 2026-02-23T12:15+05:30 (IST) Xavio
The U.S. Department of Labor (DOL) has taken a decisive step toward reshaping one of the most debated aspects of employment-based immigration: prevailing wage rules for H-1B specialty occupation visas and PERM labor certification (green card) cases. On February 23, 2026, the Office of Management and Budget (OMB) cleared the DOL’s long-awaited proposed rule for publication — meaning the public will soon see the exact details of what could become the most significant wage increase in over a decade.
This is the first major revival of wage restructuring since the 2021 Trump-era attempt (which was struck down in court and later withdrawn under Biden). Industry watchers and immigration attorneys expect the proposal to push prevailing wages higher across all four DOL wage levels, directly raising the minimum salary employers must offer H-1B workers and in PERM job offers.
What We Know So Far
OMB Clearance — The proposed rule has passed inter-agency review and is now queued for Federal Register publication (likely within the next 1–4 weeks).
Content Still Confidential — Until it appears in the Federal Register, the exact wage tables, level adjustments, and methodology remain under wraps.
Likely Impact — Higher minimum wages at Level I (entry) through Level IV (senior/expert), affecting tech, engineering, finance, healthcare, and other H-1B-heavy sectors.
Next Steps — After publication, a 30–60 day public comment period will open. DOL will then review feedback, make revisions (if any), and issue a final rule — which could take 6–18 months.
No Immediate Effect — The rule does not apply until finalized and published with an effective date.
Why This Matters for Employers & H-1B Holders
If the DOL follows historical patterns, Level I wages could rise 20–40% in high-cost metro areas, forcing companies to either pay significantly more or shift hiring strategies. For Indian professionals — who hold the largest share of H-1B visas — this could mean:
Higher salary expectations during H-1B lottery season
Increased scrutiny on PERM job offers for EB-2/EB-3 green card cases
Potential ripple effects on OPT-to-H-1B transitions and L-1B approvals
The timing is notable: it arrives just weeks after the March 2026 Visa Bulletin delivered strong forward movement in EB-2 Dates for Filing (India jumped 11 months to Nov 1, 2014), giving many applicants hope to file I-485 soon — only for wage costs to potentially rise.
Frequently Asked Questions
Q: When will the new wage rules take effect?
Not until the rule is finalized after public comment — likely late 2026 or 2027 at the earliest.
Q: Will current H-1B holders be affected immediately?
No — prevailing wage rules apply at the time of petition filing or LCA submission. Extensions usually follow the wage in effect at filing.
Q: Could this stop companies from sponsoring H-1B?
It may reduce filings in cost-sensitive roles, but large tech/finance/healthcare firms are expected to adapt.
Q: Where can I track the proposed rule?
Watch the Federal Register (federalregister.gov) and DOL’s Employment and Training Administration site for publication.
For official updates on the proposed DOL wage rule, H-1B LCA requirements, PERM labor certification, and the latest visa bulletin movements, visit the U.S. Department of Labor Foreign Labor Certification page.
For context on recent green card progress, see our fresh analysis of the March 2026 Visa Bulletin: March 2026 Visa Bulletin: EB-2 Dates for Filing Current for Most Countries – India Jumps 11 Months.
Stay ahead of U.S. immigration shifts — explore our dedicated U.S. immigration section for real-time updates, H-1B strategies, and green card filing guides.
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