The U.S. Department of Labor recently introduced a proposed rule titled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States.” Published on March 27, 2026, this proposal aims to adjust the prevailing wage requirements for employers sponsoring foreign national workers under the H-1B, H-1B1, E-3, and PERM (employment-based green card) programs. Specifically, it would raise the prevailing wage thresholds for employers who rely on the Department of Labor's Occupational and Employment Wage Statistics (OEWS) when sponsoring foreign nationals under these visa programs.
The public is invited to comment on these changes through May 26, 2026. Once this comment period closes, the Department of Labor must review all submissions before publishing a final version of the rule. While there is no official timeline for when that final version will be released, the new provisions are scheduled to go into effect 30 days after the final rule is published.
The changes, once finalized, are expected to have significant financial implications for employers. Although the exact prevailing wage requirements will depend on the specific job duties, occupational category, and geographic location, the Department of Labor estimates that the average certified prevailing wage could rise by approximately $14,000 per year for each worker. These adjustments will apply to all sponsoring organizations, including H-1B "cap-exempt" entities such as universities and non-profit research institutions.
International Student and Scholar Services is currently evaluating how these proposed increases will affect our existing and future sponsorship programs. We will continue to monitor the situation and share updates as soon as more definitive information becomes available.
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