New H-1B Wage Rule: DOL Proposes Salary Increase of up to 30% in 2026

The Department of Labor's proposed H-1B wage rule would increase minimum salary requirements, depending on experience level, affecting H-1B, H-1B1, E-3, and PERM applicants. The rule entered a 60-day public comment period on March 26, 2026, with comments due by May 26, 2026. No changes take effect until the rule is finalized.

On March 26, 2026, the US Department of Labor issued a proposed rule that would raise prevailing wage rates for foreign workers across several visa categories. The rule represents the most significant change to H-1B wage requirements in recent memory and would meaningfully increase labor costs for US employers who sponsor foreign workers.

What is the new H-1B wage rule?

The H-1B wage rule refers to a proposed DOL regulation that would raise the prevailing wage levels used to certify that employers are paying foreign workers fairly. Under current rules, employers must pay the greater of the prevailing wage for the position or the wage paid to workers with similar experience. The proposed rule increases each wage tier in that four-level system, with the largest impact at the entry level, where minimum salary requirements would rise by approximately 30 percent.

Prevailing wage levels are drawn from the Occupational Employment and Wage Statistics (OEWS) survey published by the Bureau of Labor Statistics. The DOL's stated rationale for the increase is that current wage levels have been set too low relative to market rates, particularly for entry-level and early-career positions, creating conditions where employers can substitute foreign workers for domestic ones at below-market pay.

Which visa types would be affected by the new prevailing wage rule?

The proposed wage rule applies to employers sponsoring workers under the following visa and immigration categories:

• H-1B visa holders (specialty occupation workers)
• H-1B1 visa holders from Chile and Singapore
• Australian E-3 visa holders
• EB-2 and EB-3 PERM candidates for employment-based green cards

The rule would also allow employers to continue using private survey wage data as an alternative to OEWS data when calculating prevailing wages, though this option is not guaranteed to survive in the final rule. Employers should not plan around it until finalization.

When does the H-1B wage rule take effect?

The rule is not yet in effect. It entered a 60-day public comment period on March 26, 2026, with the comment deadline set for May 26, 2026. After the comment period closes, the DOL will review submissions before publishing a final rule with an effective date. No implementation timeline has been confirmed.

According to Littler, if implemented, the rule will affect only new or pending wage determinations and Labor Condition Applications (LCAs) that are pending with the DOL’s Office of Foreign Labor Certifications’ National Processing Centers as of the rule’s effective date (TBD). It will also apply to new Labor Condition Applications and Prevailing Wage Requests submitted on or after that date, without retroactive changes to applications that were previously approved.

How will this affect H-1B applications and employer hiring costs?

For most employers, the primary impact is salary cost. A 30% increase at the entry level translates directly to higher base compensation obligations for every new H-1B hire at that tier. Organizations with large H-1B workforces, particularly in tech and professional services, should model the cost impact across open requisitions and renewal cycles.

Secondary impacts include increased PERM labor certification costs, higher wage floors for EB-2 and EB-3 green card candidates, and potential delays as employers recalibrate offer packages to meet new minimums. The rule creates pressure to resolve pending applications before finalization where possible.

How should employers prepare for the H-1B wage rule changes?

The comment period is the most immediate action item. Employers directly affected by H-1B wage rule changes should submit formal comments to the DOL before May 26, 2026. Comments should include specific data on cost impact, workforce composition, and recruitment timelines. SHRM and other employer associations are coordinating comment campaigns for members.

In parallel, employers should take the following steps now:

• Audit all open and pending LCAs for affected visa categories to understand exposure.
• Model salary cost increases across H-1B headcount at each wage tier.
• Consult immigration counsel on whether accelerating pending applications is advisable.
• Determine whether private wage survey data is currently in use and how its potential removal would affect wage certifications.
• Monitor the DOL rulemaking docket for the final rule publication date.

Safeguard Global tracks regulatory changes affecting global workforce compliance in real time. For questions about how this rule may affect your workforce strategy, contact our team. And for more information about the H-1B visa, please visit this blog.

Sources

HR Dive | SHRM | Littler | DOL Press Release