U.S. Department of labour Proposes New Wage Rules for H‑1B and PERM Programs

Overview

The U.S. Department of labour (DOL) has issued a new proposed rule to update wage guidelines for both the H-1B visa program and the Permanent labour Certification (PERM) process. The objective is to modernize wage levels so they more accurately reflect current labour market conditions and to reinforce protections for U.S. workers, while still enabling employers to access international talent.

While this remains a proposed regulation and is not yet in force, employers, immigration stakeholders, and international workers should proactively assess the potential operational, financial, and compliance implications. In particular, organisations may wish to model different wage scenarios, review current H-1B and PERM compensation structures, and identify roles or locations that could be most affected by revised prevailing wage levels. Early awareness will allow global mobility, HR, and legal teams to adjust workforce planning, budget forecasts, and internal policies in a timely manner, helping to minimise disruption and maintain compliance if and when the rule is finalised.

What Is Being Proposed?

The DOL’s proposed rule primarily focuses on changes to how prevailing wages are set and applied:

• Revised wage level definitions to align more closely with actual compensation patterns
• Changes to how wage levels are calculated for H-1B visas
• Adjustments in wage criteria used in PERM (labour Certification) filings
• Updated statistical sources and methodologies for wage determination

The goal is to modernise the wage matrix to reflect evolving labour market dynamics and strengthen wage protections for domestic workers.

Why the DOL Is Updating Wage Rules?

The Department of labour’s stated purpose for the proposed changes includes:

• Increasing alignment between wage levels and actual pay in the U.S. economy
• Reducing incentives for employers to underpay foreign nationals compared with U.S. counterparts
• Modernising outdated wage data and methodologies
• Promoting fairness in employment-based immigration pathways

The proposed changes affect both employers seeking to sponsor foreign talent and foreign workers in H-1B or PERM pipelines.

What Changes Will Applicants See?

If finalised, the proposed rule could affect:

• Employers sponsoring H-1B visa holders
• Companies filing PERM labour certification applications
• H-1B beneficiaries and potential hires
• Global mobility teams and HR professionals
• Immigration attorneys and advisors

Because prevailing wage levels are critical to both initial filings and renewals, changes could impact petition strategy, wage determination timelines, and recruitment planning.

Key Impacts to Consider

Although the rule is still under comment and revision, stakeholders should understand several potential effects:

1. Higher wage thresholds
   If prevailing wage levels increase, employers may need to pay more to meet minimum wage requirements for visa sponsorship.
2. Recruitment planning adjustments
   Hiring timelines and compensation budgets may shift to accommodate revised wage benchmarks.
3. Document preparation implications
   Wage-related documentation including prevailing wage requests and PERM filings could require new data sources or strategies.
4. Longer administrative timelines
   Transition to new wage calculations may introduce delays as employers and agencies adjust.

What Employers Should Do Now? 

To prepare for potential changes, employers should consider:

• Reviewing current wage practices for H-1B and PERM positions
• Auditing compensation bands to align with stronger wage protections
• Communicating early with legal and immigration counsel
• Preparing for possible adjustments to talent acquisition budgets

Early engagement can help reduce risk and minimise disruptions if the rule is finalised as proposed.

What Workers Should Know

Foreign nationals on H-1B, or pursuing employment-based permanent residency, should:

• Stay informed about potential wage rule changes
• Understand how wage impacts could affect job offers and renewals
• Engage employers and immigration advisors about compensation planning

Awareness of these changes can help workers plan career timelines more effectively.

What Happens Next?

The DOL is currently accepting public comments on the proposed rule. During this period, employers, industry groups, worker advocates, and other interested parties can submit feedback, raise concerns, and suggest technical or operational adjustments to the draft text. Once the comment period closes, the agency will review the input received, evaluate whether changes are warranted in light of stakeholder feedback and legal considerations, and may revise the proposal accordingly. The DOL will then move to publish a final rule, which will include an official effective date and any transition or phase‑in provisions.

The finalisation timeline has not yet been determined. However, the rulemaking process typically spans several months from the close of the comment period to publication of a final rule, and complex wage regulations can take longer if substantial revisions are required. In practice, this means that stakeholders should continue to track DOL announcements and updates closely, monitor for any supplemental guidance or FAQs, and factor potential timing scenarios into workforce planning, budget cycles, and upcoming H‑1B or PERM filings. Proactive monitoring will help organisations adapt quickly once the final parameters and implementation dates are confirmed.

Key Takeaway

In a context where employment-based immigration is increasingly scrutinised, the DOL’s proposed wage rule reforms for H‑1B and PERM underline a clear trend: tighter alignment between immigration strategy, compensation, and labour market realities. For employers, this is not simply a compliance update; it is a structural shift that may influence how, where, and at what cost they recruit and retain international talent.

Organisations that rely on skilled foreign workers should therefore treat this proposal as an opportunity to stress‑test their current models. That means mapping impacted roles and locations, reviewing salary bands and offer policies, and simulating different prevailing wage outcomes for both new hires and renewals. It also requires close coordination between HR, Global Mobility, Legal, Finance, and business leaders to ensure that future H‑1B and PERM pipelines remain both compliant and economically sustainable.

Now is the right time to conduct impact assessments, refine workforce planning, and reinforce transparent communication with affected employees and candidates. By anticipating potential changes and embedding them into budgets, timelines, and mobility policies, employers can reduce operational risk while continuing to attract and secure the specialist skills they need in the U.S. market.

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Anywr is a French international group specializing in global mobility solutions.
Founded in 2012, Anywr operates in 12 countries across 4 continents. Our mission is to support companies in addressing their Human Resources challenges. We respond to your needs in terms of international mobility, particularly in terms of immigration policies, relocation, the implementation of mobility policies and EOR.

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