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31 March 2026

US Department of Labor proposes rule to change computation of prevailing wages

On 27 March 2026, the US Department of Labor (DOL) published a Notice of Proposed Rulemaking (NPRM) proposing revisions to the computation of prevailing wage levels used for prevailing wage requests (PWRs) for the PERM Labor Certification Program and the Labor Condition Applications (LCAs) for the H-1B, H-1B1, and E-3 non-immigrant visa programs. Under the proposal, DOL seeks to increase the prevailing wage floors for Wage Level I from the 17th percentile to the 34th percentile, for Wage Level II from the 34th to the 52nd, for Wage Level III from the 50th to the 70th, and for Wage Level IV from the 67th to the 88th, relying upon wage data provided by the OEWS survey. If finalized as proposed, these changes will increase the required prevailing wages for positions sponsored under EB2 and EB3 employment-based immigrant visa categories and H-1B, H-1B1, and E-3 non-immigrant programs. Under the proposed rule, employers will still be permitted to rely on employer provided wage surveys that meet DOL's acceptance criteria. The public comment period closes 26 May 2026.

A Tax Alert prepared by EY Law LLP group, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2026-0768

 
 

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