The U.S. Department of Labor on April 2 published a proposed rule that would shift each of the four prevailing wage levels used in H-1B, H-1B1, E-3 and PERM applications to substantially higher percentiles of Bureau of Labor Statistics data. Entry-level (Level I) wages would jump from roughly the 17th percentile to the 34th, while senior-level wages would move from the 67th to the 88th percentile. If finalized, the change would force employers to raise salaries for thousands of foreign professionals or forego sponsorship—particularly in technology, consulting and health-care sectors that rely heavily on Level I and II filings. The proposal comes on the heels of DHS’s wage-weighted H-1B selection rule, signaling a coordinated push to align wages more closely with—or above—local market medians. The public-comment period runs through May 26, leaving a narrow window for businesses to submit economic-impact data. Immigration counsel urge companies to audit pending PERM cases and future STEM hiring plans: any application filed after the final rule’s effective date must use the elevated rates. Recruiters warn that smaller regional employers may be priced out of the H-1B market, driving talent toward Canada and the U.K. Meanwhile, labor advocates hail the proposal as a safeguard against wage suppression and a complement to enforcement efforts targeting third-party staffing firms. Assuming the rule is finalized by late June, it could coincide with publication of the new Occupational Employment and Wage Statistics survey, introducing further volatility. Employers are therefore advised to begin budgeting contingencies for October 1 start-dates in FY 2027.
Source: Crown World Mobility
