The U.S. Department of Labor (DOL) has indicated an intent to revise the prevailing-wage framework. On March 26, 2026, DOL issued a Notice of Proposed Rulemaking (NPRM) that, if finalized as proposed, would significantly increase prevailing wage levels.
The NPRM was published in the Federal Register on March 26, 2026, with comments due in 60 days. While the effective date of any final rule remains uncertain and may shift based on comments received and the rulemaking process, implementation could occur as early as July. This means employers should start evaluating whether they need to file any H-1B transfers, amendments, or extensions sooner rather than later. Filing now allows employers to take advantage of the current wage structure.
For the moment, H-1B extensions, amendments, and many change-of-employer filings can still be supported using the current prevailing wage framework:
- Level I → 17th percentile
- Level II → 34th percentile
- Level III → 50th percentile
- Level IV → 67th percentile
Once a new rule is finalized and implemented, those same filings may need to meet significantly higher wage thresholds. Employers should not assume there will be meaningful grandfathering for cases filed after the effective date.
What This Means, Practically
If you wait:
- Extension costs rise immediately as required wages increase.
- Some roles may no longer be viable as employers may no longer be able to afford the increased wages.
- RFEs may become tougher, especially on wage-level selection and justification.
- Filing PERMs becomes tougher especially as financial ability to pay a higher wage will be harder to demonstrate
If you file now:
- You lock in today’s wage levels, at least for another three years.
- You preserve current job structures and classifications.
- You reduce exposure to future wage-driven scrutiny.
Once the new rule takes effect it will be immediate, requiring employers to start paying the increased wages.
Who Should Act First
This is not a “wait and see” scenario. Prioritize filings for:
- H-1B employees approaching extension deadlines.
- Employers planning amendments (promotions, location changes, duty changes).
- Employers filing H-1B transfers.
- Individuals in early-stage PERM planning.
If a case is ready to file, file now. There is no point waiting to see what happens. If DOL gets its way wages will increase.
Conclusion
Given the real possibility of higher wages, employers are advised to act now and file their H-1B transfers, extensions and amendments under the current wage system. Level I and II wages are most likely to be impacted by the changes so employers should prioritize these cases.
If you have any questions regarding the above, please contact PSBP Law Partner Chris Prescott at cprescott@psbplaw.com.