On March 27, 2026, the Department of Labor published a proposed rule that would fundamentally change how prevailing wages are calculated for the H-1B and PERM programs. If finalized, entry-level (Level I) wages would jump from the 17th percentile to the 34th percentile — effectively making today's Level II the new floor.
This isn't theoretical. PermTrack has 279,666 real PERM cases from DOL disclosure data, and we can show exactly what this rule would mean for workers and employers across the country.
What's Changing
The DOL's four-tier prevailing wage system has been largely unchanged since 2005. The proposed rule would shift every tier upward:
| Wage Level | Current Percentile | Proposed Percentile | Estimated Increase |
|---|---|---|---|
| Level I (Entry) | ~17th | 34th | +33% |
| Level II (Qualified) | ~34th | 52nd | +25% |
| Level III (Experienced) | ~50th | 70th | +21% |
| Level IV (Fully Competent) | ~67th | 88th | +22% |
The DOL's own analysis found that the average wage offered to H-1B workers was roughly $10,000 lower than the average wage for comparable U.S. workers in the same occupations and locations. The proposed rule is designed to close that gap.
Why This Matters for PERM Applicants
This rule doesn't just affect H-1B holders — it directly impacts the PERM labor certification process. The same wage tiers used for H-1B Labor Condition Applications are also used for PERM prevailing wage determinations.
Here's what that means in practice:
Higher wage floors for PERM filings. If the rule takes effect, every new prevailing wage determination (PWD) request would be calculated using the higher percentiles. Employers who currently file PERM at Level I wages would need to offer significantly more — in many occupations, $14,000+ per year more.
Some employers may reconsider sponsorship. An average increase of $14,000 per worker per year is significant, especially for companies that sponsor large numbers of PERM cases. Smaller companies and startups may find the cost barrier even higher.
Existing PERM cases are not affected. The rule applies only to new LCA filings and PWD requests made after the effective date. If your PERM has already been filed, your prevailing wage determination stands.
What PermTrack Data Shows
Using PermTrack's database of 279,666 PERM cases, we can see which occupations and states would be most affected.
The Occupations Most Impacted
Software developers, computer systems analysts, and other IT occupations dominate PERM filings. These roles also tend to be filed heavily at Level I and Level II wages — exactly the tiers seeing the largest percentage increases.
You can explore PERM filings by occupation on our Occupations page to see filing volumes and current wage levels for any SOC code.
The States Most Impacted
States with the highest PERM filing volumes — California, Texas, New York, Washington, and Georgia — would see the broadest impact simply because of the sheer number of cases filed there. But the dollar impact varies by geography: a 33% increase on a Level I wage in San Francisco looks very different from the same percentage increase in Austin.
Our Wage Map lets you explore average PERM wages by state and occupation to see exactly how your location compares.
The Employers Most Impacted
The top PERM filers by volume include major tech companies and IT consulting firms. Companies that file large numbers of PERM cases at entry-level wages would face the biggest aggregate cost increase. You can look up any employer's PERM filing history on our Employers page — including total filings, approval rate, and average wages offered.
Timeline: When Would This Take Effect?
The rule is not final. Here's the expected timeline:
- March 27, 2026: Proposed rule published in the Federal Register
- ~May 26, 2026: Public comment period closes (60 days)
- Late 2026 / Early 2027: Final rule could be published (if it survives the comment period and potential legal challenges)
- 30–60 days after final rule: Effective date
It's worth noting that a nearly identical rule was attempted during the first Trump administration in 2020–2021. It was challenged in court and ultimately withdrawn by the Biden administration. Legal challenges to the current proposal are widely expected.
What Should You Do?
If your PERM is already filed: Nothing changes for you. Your existing prevailing wage determination is locked in.
If your employer is planning to file PERM soon: Encourage them to file the PWD request as soon as possible — before any final rule takes effect. Starting the process now means your wage determination would be calculated under the current (lower) percentiles.
If you're evaluating job offers: Use PermTrack's Employer Explorer to compare employers' PERM histories. Look at approval rates, processing times, and filing volumes. An employer with a strong track record of PERM approvals is a better bet in an environment of rising costs and uncertainty.
If you're an immigration attorney or HR professional: The 60-day comment window is your opportunity to provide feedback. Comments can be submitted at regulations.gov under Docket No. ETA-2026-0001.
Track Your PERM Timeline
Regardless of how this rule plays out, understanding where your case stands in the DOL queue is critical. PERM processing currently averages over 500 days — about 16.5 months.
PermTrack gives you free access to:
- 279,666+ searchable PERM cases — look up any employer, law firm, occupation, or state
- Processing time trends — see how fast (or slow) DOL is currently moving
- Green card timeline estimator — estimate your full journey from PERM to green card
- Visa Bulletin history — track priority date movements for your EB category and country
All free. No login required. Just data.
PermTrack uses public domain data from the U.S. Department of Labor, Office of Foreign Labor Certification (OFLC). This post is for informational purposes only and does not constitute legal advice. Consult a qualified immigration attorney for guidance on your specific situation.
Sources: DOL NPRM "Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States" (March 27, 2026), DOL FLAG Processing Times (March 5, 2026), OFLC Performance Data disclosure files.