DOL Proposed Rule Changes Prevailing Wage Calculation
The U.S. Department of Labor has published a proposed rule that would change how prevailing wages are calculated for many international employee visa categories.
On March 27, 2026, the Department of Labor (DOL) published a proposed rule that would significantly revise how prevailing wages are calculated for certain foreign national employment programs, including H‑1B, H‑1B1, E‑3, and employment sponsored permanent residency under the PERM system (EB‑2 and EB‑3). These visa categories are commonly used by universities to employ international faculty, researchers, and professional staff. The H‑1B, H‑1B1 (for citizens of Chile and Singapore), and E‑3 (for Australian nationals) are temporary work visa classifications, while PERM is the labor certification process used for employment-based permanent residency (green cards) in EB‑2 and EB‑3 categories. All of these require employers to meet or exceed federally determined prevailing wage levels.
Under the current process, the DOL’s National Prevailing Wage Center (NPWC) determines wages primarily using Bureau of Labor Statistics Occupational Employment Wage Statistics (OEWS) data. The NPWC first classifies a position into a standard occupational category by reviewing the job title, duties, and requirements, and then assigns one of four required wage levels—ranging from entry-level (Level I) to fully competent (Level IV)—based on factors such as education, experience, skills, and supervision. The prevailing wage is then set using the corresponding percentile wage for that occupation and geographic area.
The proposed rule would raise wage levels across all four tiers by shifting the percentiles used in these calculations. Specifically, Level I wages would increase from the 17th to the 34th percentile (approximately a 33% increase), Level II from the 34th to the 52nd percentile (24%), Level III from the 50th to the 70th percentile (21%), and Level IV from the 67th to the 88th percentile (22%). While the overall structure and methodology for determining wage levels would remain in place, these adjustments would result in higher required salary thresholds for positions sponsored under these programs.
The DOL indicates that the proposed changes are intended to address concerns that current prevailing wage levels may undercut wages for U.S. workers. The public comment period for this proposed rule closed on May 26, 2026, and the DOL is now expected to review submitted feedback before determining next steps in the rulemaking process. If finalized, the rule could have notable implications for hiring and compensation planning involving international faculty and staff, including increased labor costs and potential adjustments to salary structures. As the rule is still in the proposal stage, no immediate changes are in effect at this time.
The Office of International Services is committed to providing high-level immigration guidance to the university community and to fostering a supportive environment for international students, scholars, and employees. Anyone with questions is welcome to connect with an advisor or email ois@uic.edu.
Please note that the information shared in this message is intended for educational purposes only and does not constitute legal advice.