WASHINGTON (Diya TV) — The U.S. Department of Labor has proposed a major change to how it calculates prevailing wages for foreign worker programs. The rule, issued March 26, 2026, could reshape hiring costs and compliance rules for U.S. employers. The proposal targets key visa categories, including H-1B, H-1B1, and E-3, as well as the PERM labor certification process. If finalized, it would mark one of the biggest shifts in wage rules in more than 20 years. The proposal appeared in the Federal Register on March 27, starting a 60-day public comment period. After that, the department will review feedback before issuing a final rule.
The DOL wants to revise how it sets prevailing wages. These wages act as the minimum pay employers must offer foreign workers. The goal is to ensure that hiring foreign talent does not lower wages for U.S. workers. The proposal would update wage levels and calculation methods. It may raise required salaries in many roles. The DOL says the change will better reflect real market wages. The rule also aims to improve transparency. Employers would see clearer guidance on how wage data gets calculated. This could reduce confusion during the filing process.
The H-1B visa program allows U.S. companies to hire skilled foreign workers in fields like tech, engineering, and finance. The PERM process supports employers seeking permanent residency for foreign employees. Higher prevailing wages could increase hiring costs. Some companies may need to adjust salary offers to stay compliant. Others may rethink hiring strategies or timelines. Small and mid-sized firms may feel the impact more. Large companies often have more flexibility to absorb higher wages. Still, all employers must follow the same rules.
Labor market conditions have shifted in recent years. Wage growth, inflation, and talent shortages have all played a role. The DOL says the current system does not fully reflect these changes. The proposed update aims to align wages with actual job markets. It also responds to ongoing concerns about wage suppression in certain industries. Critics argue that higher wages may limit access to global talent. Supporters say the change will protect U.S. workers and create fair competition.
The rule remains in the proposal stage. The public comment period lasts 60 days from publication. During this time, businesses, workers, and advocacy groups can submit feedback. After reviewing comments, the DOL may revise the rule. The final version could take several months to appear. Once issued, employers will need time to adjust. Experts expect the full process to extend into late 2026 or beyond. Companies should not wait until the final rule to prepare.
Employers should review current wage structures now. They should compare existing salaries with potential new benchmarks. This step can help avoid surprises later. Companies may also want to audit ongoing H-1B and PERM cases. Early adjustments can reduce compliance risks. Legal and HR teams should stay informed about updates. It is also wise to participate in the comment process. Employers can share concerns and suggest improvements. This feedback may influence the final rule.
