The Department of Labor’s long-awaited prevailing-wage overhaul for foreign workers has reached the White House Office of Information and Regulatory Affairs (OIRA), the last stop before publication in the Federal Register. The draft final rule—officially titled “Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Immigrants and Non-immigrants in the United States”—was delivered to OIRA on 6 November and appeared on OIRA’s public dashboard on 12 November 2026. If cleared in its current form, the rule would substantially raise the government-set pay floors that employers must meet when filing H-1B, H-1B1, E-3 or PERM green-card cases. Early agency summaries indicate that Level 1 wages would jump to the 45th percentile of local earnings (up from the 17th), while Level 4 would climb to the 95th percentile. The Labor Department argues the change is necessary to “better protect U.S. workers from downward wage pressure,” but business groups warn the increases could price smaller firms—and even some Fortune 500 employers—out of the skilled-worker market. Because the rule is in final form, OIRA has up to 90 days to complete its cost-benefit review and inter-agency consultations. Immigration counsel expect publication in late January, with an effective date 60 days later unless litigation intervenes. Companies therefore have a narrow window to file cases under the current, lower wage levels and to budget for dramatically higher labor-condition-application (LCA) costs in FY 2027. The measure dovetails with the administration’s broader effort to discourage low-wage filings. Earlier this year USCIS introduced a wage-weighted H-1B lottery, and DHS has floated a $103,265 “H-1B integrity fee.” Taken together, the initiatives could shift recruitment away from entry-level positions toward senior, high-salary roles—or out of the United States altogether if employers relocate projects to Canada, Mexico or offshore delivery centers. Practical next steps for mobility teams include auditing current salaries against the proposed tables, flagging roles likely to become non-viable, and briefing business leaders on budget impacts. Employers with PERM cases in progress should also consider requesting prevailing-wage determinations immediately, because determinations issued before a new rule’s effective date remain valid for the ensuing 90 days.
Source: Wocult
