On March 27, 2026, the Trump administration published a proposed rule that would significantly raise the minimum wages required to hire H1B workers. If finalized as written, the rule would increase prevailing wage requirements by 21 to 33 percent depending on experience level, making it harder for employers to qualify H1B positions at lower salary ranges.
This is a proposed rule, not a final rule. It is not yet in effect. But it matters now for two reasons: the comment period is open, and the direction of travel is clear. Employers and H1B workers should understand what this rule would change before it reaches final form.
What Prevailing Wages Are and Why They Matter
Every H1B petition requires a Labor Condition Application (LCA), in which the employer attests that the H1B worker will be paid the prevailing wage for their occupation and location. The prevailing wage is set by the Department of Labor using the Occupational Employment and Wage Statistics (OEWS) survey data.
DOL divides prevailing wages into four levels based on experience and responsibility:
- Level I — entry-level, limited experience, routine tasks under close supervision
- Level II — qualified, some experience, tasks requiring judgment but mostly routine
- Level III — experienced, independent work, some supervisory or specialized duties
- Level IV — expert, high complexity, often supervisory or highly specialized
The level an employer uses on the LCA determines the minimum wage they must pay. Using a lower level than the role actually requires is a basis for denial or fraud findings. Under the FY2027 wage-weighted lottery, the wage level also determined lottery odds, making level selection more consequential than ever.
What the Proposed Rule Would Change
The current prevailing wages are based on OEWS survey data from 2022-2023. The proposed rule would update the underlying wage data and restructure how wage levels are calculated, resulting in across-the-board increases:
- Level I: approximately 21 percent increase over current thresholds
- Level II: approximately 24 percent increase
- Level III: approximately 29 percent increase
- Level IV: approximately 33 percent increase
To put this in concrete terms: if the Level II prevailing wage for a software developer in San Jose is currently $130,000, the proposed rule would push that threshold to approximately $161,000. An employer filing an H1B LCA at Level II would need to pay at least $161,000 to qualify.
The increases are larger at higher wage levels, which compounds the pressure on employers who have been filing at Level III and IV to capture better lottery odds under the wage-weighted system.
When Would This Take Effect
The proposed rule is in the public comment period as of late March 2026. Federal rulemaking requires a notice-and-comment process under the Administrative Procedure Act. After the comment period closes, DOL reviews comments and publishes a final rule with an effective date.
Typical timelines for a major wage rule run 6 to 12 months from proposed to final. If DOL moves quickly, a final rule could be effective as early as late 2026 or early 2027. FY2028 H1B registrations (opening March 2027) would almost certainly be subject to the new wage floors if the rule is finalized on that timeline.
Petitions being filed in the April-June 2026 FY2027 window use current prevailing wages. The proposed rule does not affect filings happening right now.
Impact on Current and Future Petitions
FY2027 Petitions (April-June 2026 filing window)
No impact. The rule is proposed, not final. LCAs filed now use the current OEWS-based prevailing wages. Employers filing in this window do not need to adjust salary offers based on the proposed rule.
H1B Extensions Filed in 2026
Depends on timing. If the rule is finalized and effective before an extension LCA is filed, the new wages would apply. Extensions are typically filed 6 months before the current status expires, so workers whose H1B expires in mid-to-late 2027 or beyond should monitor whether the rule is finalized before their LCA needs to be submitted.
FY2028 Lottery and Beyond
This is where the rule has the most significant impact. If finalized, FY2028 H1B registrations would require wage level attestations that meet the new thresholds. The combination of a wage-weighted lottery (where higher wage levels get more entries) and higher wage floors at every level would further tighten the economics of H1B sponsorship.
A company that currently pays $115,000 for a Level II software developer role in Austin might clear the current Level II threshold but fall short of the proposed one. They would need to either raise the salary or register at Level I, taking a significant lottery odds penalty in the process.
How to Comment on the Proposed Rule
The public comment period is open. Anyone, including employers, workers, industry associations, and individuals, can submit comments to DOL. Comments that are substantive (citing specific impacts, data, or legal arguments) carry more weight than form letters.
Comments can be submitted at regulations.gov. Search for the DOL H1B prevailing wage proposed rule docket. Your immigration attorney can help draft a substantive comment specific to your employer's situation.
Key arguments that employers and workers have raised in prior wage rulemakings include: the OEWS survey underweights smaller employers and rural markets, the four-level system does not capture the full distribution of roles within occupations, and abrupt wage floor increases create compliance gaps for employers who cannot renegotiate salaries mid-petition cycle.
What to Do Now
- File FY2027 petitions without delay. Current prevailing wages apply. The proposed rule does not affect petitions filed now.
- Model salary ranges against the proposed new thresholds. If your HR or compensation team sets salary bands, run the proposed wage levels against your current bands now. Identify positions where the proposed rule would create a gap.
- Submit a comment if you have substantive input. Employers with data on how the current wage levels affect their H1B programs have an opportunity to shape the final rule.
- Watch for finalization timing. H1B extensions due in 2027 or later need to track whether the rule is final before LCA submission.
- Consult your immigration attorney on FY2028 planning. If the rule is finalized, FY2028 lottery strategy changes. Salary offers that secured Level III lottery entries this year may only qualify for Level II next year.
The Broader Picture
This proposed rule is one of three concurrent H1B wage-related changes. The FY2027 wage-weighted lottery (already in effect) ties lottery odds to wage levels. The $100,000 presidential proclamation fee (already in effect) adds cost for certain new filings. The prevailing wage proposed rule (pending) would raise the floor at every level.
Taken together, the direction is unmistakable: the H1B program is being restructured to favor higher-paid, more experienced positions. Entry-level roles face the most pressure from the lottery odds change. Mid-level roles face the most pressure from rising wage floors. Employers who have built H1B programs around lower wage levels will need to adjust.
For H1B workers, the practical implication is to negotiate salary aggressively and understand which wage level your role actually qualifies at. A salary that clears the current Level II threshold may not clear the proposed one, affecting both your odds in future lotteries and your employer's compliance obligations.
Calculate how your salary maps to wage levels under current prevailing wage data