DOL Proposed Rule: Wage Percentile Changes — What It Means for FY2028

On March 27, 2026, the Department of Labor published a proposed rule that would make every H-1B wage level significantly more expensive to reach. It is the second half of the 2026 wage-policy one-two punch: DHS made levels decide lottery odds in February; DOL now proposes to raise the salary bar behind each level.

This is a tracking post: the rule is proposed, not final, and the numbers below could change before anything takes effect. We update this page as the rulemaking moves — the "updated" date at the top always reflects the last revision.

What DOL proposed

The rule — formally Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States (Docket ETA-2026-0001, 91 FR 15454) — keeps the four-level prevailing wage structure but raises the OEWS percentile that defines each level:

Wage level	Current percentile	Proposed percentile
Level I (entry)	17th	34th
Level II (qualified)	34th	52nd
Level III (experienced)	50th	70th
Level IV (fully competent)	67th	88th

Read that table carefully: under the proposal, today's Level II becomes tomorrow's Level I. The whole ladder shifts up by roughly one rung. A salary at the current Level III line (the local median) would land at Level I if the new percentiles take effect.

The rule would apply across H-1B, H-1B1, E-3, and PERM — so it reaches green card sponsorship too, not just the lottery. The rulemaking stems from the September 2025 presidential proclamation that directed DOL to revise prevailing wage levels upward.

What "+$14,000 a year" actually means

DOL's own impact estimate puts the average increase in required wages at roughly $14,000 per worker per year. That is an average across occupations and metros, so treat it as an order of magnitude, not a quote for your case. The real impact is intensely local:

• Dense mid-market occupations (software, data, accounting in mid-cost metros) tend to see thousands of dollars per percentile step in the middle of the distribution — the Level I→II and II→III gaps widen meaningfully.
• Top-decile metros (San Jose, San Francisco, New York) already price many offers above Level IV, so marginal impact there is smaller.
• Entry-level hiring absorbs the hit. Raising Level I from the 17th to the 34th percentile is, in effect, a large increase in the minimum salary at which a foreign graduate can be sponsored at all.

To see what the shift would do to a specific offer, run today's numbers in the wage level calculator and compare them against the proposed column above — if a final rule lands, the calculator's thresholds update with it.

Where the rulemaking stands

• March 26, 2026 — DOL releases the proposal.
• March 27, 2026 — Published in the Federal Register (91 FR 15454); 60-day comment period opens.
• May 26, 2026 — Comment period closes. Roughly 1,155 comments were filed, with opposition comments outnumbering support about two to one — employer groups and universities objecting to entry-level impacts, worker-advocacy groups largely in favor.
• Now (July 2026) — DOL is reviewing comments. Next step is a final rule, a modified re-proposal, or withdrawal; there is no statutory deadline.

DOL also invited comment on alternatives, including an "experience benchmarking" approach that would set Level I to the estimated median wage of comparably educated and experienced U.S. workers instead of a fixed percentile. Nothing signals which direction the final rule will take — assume nothing until it publishes.

Litigation is a live possibility here as well. A similar Trump-era percentile increase (October 2020) was blocked by federal courts before taking effect, and the 2026 proposal could face legal challenges on related grounds if finalized.

What it means for FY2027 vs. FY2028

FY2027 (this season): nothing changes. Registration closed in March, selections ran under current thresholds, and petitions are being adjudicated now. The current 17/34/50/67 percentiles govern.

FY2028 (March 2027 registration): this is where to focus. If DOL finalizes the rule before the next cap season — and a fall 2026 final rule with a spring 2027 effective date is a plausible track — the interaction with the weighted lottery gets interesting:

• Same salary, lower level. Thresholds jump, so a fixed offer maps to fewer pool entries. A salary worth 3 entries (Level III) this year could be worth 1 next year.
• Level compression. More registrations pile into Level I because fewer offers clear the raised Level II line. DHS's estimated odds (15.3%/30.6%/45.9%/61.2%) were computed on the old pool distribution — the FY2028 picture depends on both rulemakings at once.
• Negotiation targets move. The gap to the next level gets bigger, which makes knowing your thresholds earlier — at offer stage, not March — more valuable. Browse certified LCAs filed by employers in the H1B Levels database to see which companies already pay at the higher lines for your role.

PERM filers: prevailing wage determinations issued before any final rule's effective date would generally stand, which is why some attorneys are evaluating whether to lock in current prevailing wages now. That is a case-specific judgment — raise it with counsel.

How we are tracking it

We will update this post when any of the following happens: a final rule publishes, an effective date is set, litigation is filed, or DOL signals withdrawal. The wage level calculator always runs on the thresholds currently in force, with the OEWS effective year shown on every result, and the odds simulator picks up any final rule the day it takes effect — so both tools stay correct even as this story moves.

Frequently asked questions

Is the DOL wage percentile rule in effect? No. It is a proposed rule published March 27, 2026; the comment period closed May 26, 2026. Current thresholds (17/34/50/67) remain in force unless and until a final rule says otherwise.

What would it change? The percentile behind each level: I 17th→34th, II 34th→52nd, III 50th→70th, IV 67th→88th — DOL estimates roughly $14,000 more in required wages per worker per year on average, across H-1B, H-1B1, E-3, and PERM.

Does it affect the FY2027 lottery? No. FY2027 ran under current thresholds. The stakes are FY2028: if finalized, the same salary could map to a lower wage level and fewer lottery entries.

Sources

• DOL proposed rule, Federal Register, March 27, 2026 (91 FR 15454, Docket ETA-2026-0001) — via GreenCardClock comment-period recap: https://greencardclock.com/blog/dol-prevailing-wage-rule-comment-period-closed-may-2026
• Boundless: DOL proposes H-1B prevailing wage overhaul: https://www.boundless.com/blog/dol-h1b-prevailing-wage-nprm-2026
• Reddy & Neumann, P.C.: proposed percentile changes and employer considerations: https://www.rnlawgroup.com/proposed-2026-h-1b-prevailing-wage-rule-should-employers-file-lcas-now/
• Berardi Immigration Law: percentile shift 17th→34th and 67th→88th: https://berardiimmigrationlaw.com/new-dol-rule-would-raise-h-1b-wages-to-34th-88th-percentile-what-employers-should-do-now/
• Penn Wharton Budget Model: analysis of the NPRM and the experience-benchmarking alternative: https://budgetmodel.wharton.upenn.edu/p/2026-05-25-the-experience-benchmarking-alternative-to-the-2026-h-1b-prevailing-wage-rule/

This site is an independent data tool and is not affiliated with any government agency. Nothing on this site constitutes legal advice or immigration advice. Lottery odds shown are statistical estimates based on DHS-published figures and assumptions; actual outcomes depend on the annual registration pool and USCIS processing. Consult a licensed immigration attorney for advice about your specific situation.

Data source: U.S. Department of Labor, Office of Foreign Labor Certification (OFLC) disclosure files, updated quarterly. LCA filing data reflects applications certified by DOL; an LCA is a labor condition application and does not by itself constitute an approved H-1B petition or an employment offer. Wage level thresholds are derived from BLS Occupational Employment and Wage Statistics (OEWS). Last data update: Q2 FY2026.