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DOL’s March 2026 Proposal to Raise PERM Prevailing Wage Levels — What It Means for EB-3 Sponsors

Lorn & Partner Team
31 November 2025

DOL’s March 2026 Proposal to Raise PERM Prevailing Wage Levels — What It Means for EB-3 Sponsors

For U.S. employers sponsoring foreign workers for permanent residence through the EB-3 employment-based green card process, wages are about to become an even more important part of immigration planning.

 
On March 27, 2026, the U.S. Department of Labor (DOL) published a significant Notice of Proposed Rulemaking (NPRM) that would change the methodology used to calculate prevailing wages for the PERM labor certification program. The proposal, titled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States,” would affect employers sponsoring workers through both EB-2 and EB-3, as well as certain temporary visa programs. 

For EB-3 sponsors, the potential impact is substantial. If finalized, the proposal could require employers to offer higher wages for sponsored positions, increase recruitment and budgeting challenges, and make careful PERM case preparation even more important.
But there is an important point to understand: this is a proposed rule—not a final rule. Employers should therefore avoid assuming that the proposed wage levels are already mandatory. 

What Is PERM and Why Does the Prevailing Wage Matter?

The PERM labor certification process is an important step for many employers sponsoring foreign nationals for employment-based permanent residence.

 
Before filing a PERM application with DOL, an employer generally must obtain a prevailing wage determination and conduct required recruitment. The employer must demonstrate that there are not sufficient able, willing, qualified, and available U.S. workers for the position and that hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.

The prevailing wage therefore plays a central role.
An employer generally must offer at least the applicable prevailing wage for the sponsored position. If the required wage increases, the employer may need to reconsider its compensation structure, job requirements, recruitment strategy, and overall immigration budget. 

DOL's March 2026 proposal is specifically designed to revise how these wage levels are calculated. The Department says its goal is to better align prevailing wages with wages paid to similarly employed U.S. workers and to strengthen protections for the U.S. labor market. 

What Is DOL Proposing to Change?

The current PERM prevailing wage methodology uses a four-level wage structure based on the Department of Labor's Occupational Employment and Wage Statistics (OEWS) data.
Under the proposed rule, DOL would significantly increase the percentile thresholds used for the four wage levels.
The proposal would change the wage levels approximately as follows:

Wage Level Current Percentile Proposed Percentile
Level I 17th percentile 34th percentile
Level II 34th percentile 52nd percentile
Level III 50th percentile 70th percentile
Level IV 67th percentile 88th percentile

These proposed changes are particularly important because Level I would effectively move to the current Level II percentile, while the higher levels would also move considerably upward. 

In other words, an employer that currently receives a relatively modest Level I prevailing wage could face a substantially higher wage requirement if the proposed methodology becomes final. 

Why This Matters for EB-3 Employers?

EB-3 sponsorship is used for several types of employment-based immigration, including professionals, skilled workers, and other workers.


Many EB-3 positions involve employers that operate within tight labor and compensation budgets. A significant increase in prevailing wage requirements could therefore have practical consequences. 

For example, an employer may have developed a PERM position based on a particular salary range. If the applicable prevailing wage rises under a new methodology, the employer may need to determine whether the offered wage still satisfies the requirement.
This can create a chain reaction: 

Higher prevailing wage → higher required salary → increased employment cost → possible recruitment and budgeting changes. 

For businesses sponsoring multiple workers, the financial impact could become even more significant.

Could the Proposal Make EB-3 Sponsorship More Expensive?

Potentially, yes.

 
DOL's proposal is intended to raise the prevailing wage thresholds across the four levels. Independent immigration analyses have estimated that the changes could produce substantial increases depending on the occupation and geographic area. One analysis of the proposal notes that the Department estimated an average increase of approximately $14,000 per year per affected worker based on its analysis of wage data. 

However, employers should be careful with generalized dollar estimates. 

There is no single percentage increase that applies to every EB-3 position. The actual wage depends on factors such as: 

        • The occupation and SOC classification;
        • The geographic area of employment;
        • The wage level;
        • The employer's job requirements;
        • The applicable OEWS wage data; and
        • Whether the proposed methodology ultimately becomes final. 

Therefore, employers should evaluate their own positions rather than assume that every PERM case will experience the same increase. 

What Does This Mean for Current EB-3 PERM Cases?

This is one of the most important questions employers are asking.

 
A proposed rule does not automatically replace the current regulations. The March 2026 NPRM begins a federal rulemaking process; it does not itself impose the proposed wage levels immediately. 

The proposal was published in the Federal Register on March 27, 2026, and DOL established a public comment period ending May 26, 2026. 

The proposed rule also discusses how revised wage levels would apply depending on when prevailing wage requests are pending or filed. Employers therefore need to examine the final regulatory text and any transition provisions if and when DOL issues a final rule.
This is why employers should not automatically delay a PERM case simply because a proposed rule exists. 

At the same time, businesses with upcoming sponsorship plans should monitor the rule closely
.

Should Employers Consider Moving Forward With PERM Cases Now?

For some employers, timing may become an important strategic consideration.

 
If an employer is already prepared to begin the PERM process, waiting indefinitely could create additional uncertainty. PERM sponsorship is already a multi-step process involving prevailing wage determinations, recruitment, preparation of the application, and adjudication.

 

Employers should evaluate their individual circumstances with immigration counsel before deciding whether to accelerate or postpone a case.
Important questions may include:

 

         • Has the employer already obtained a prevailing wage determination?
         • Is the prevailing wage determination still valid?
         • Has recruitment started?
         • Is the offered salary sufficient under the applicable rules?
         • Is the employee's priority date an important consideration?
         • Could the position qualify under a different wage level?
         • Would changing the job requirements create compliance concerns?
         • How would a potential wage increase affect the employer's budget? 

There is no universal answer for every employer.

Job Requirements Will Become Even More Important

A prevailing wage determination depends not simply on the employee's personal salary but on the occupation, position requirements, and work location.

 

That means employers should pay close attention to how the PERM position is described.
The job duties, minimum education, experience, skills, travel requirements, and other requirements should accurately reflect the employer's legitimate business needs. 

Employers should never artificially reduce job requirements simply to obtain a lower prevailing wage. Conversely, unnecessarily high requirements can create recruitment complications and potentially raise questions during the PERM process. 

A carefully designed job description can therefore become an important part of both immigration compliance and business planning.

Could Higher Wages Affect Recruitment?

Yes.
PERM recruitment is designed to test the U.S. labor market. Employers must follow regulatory recruitment requirements and demonstrate that the sponsored position has been made available to U.S. workers under the applicable rules.

 
If the prevailing wage increases, employers may need to consider how the compensation compares with the local labor market.
A higher offered wage could make a position more attractive to U.S. workers. However, it could also increase the employer's overall labor costs. 

Employers should therefore coordinate immigration strategy with human resources, payroll, finance, and management rather than treating PERM as an isolated legal process. 

What Should EB-3 Sponsors Do Now?

Employers do not need to panic but they should prepare.

 
1. Review upcoming PERM sponsorship plans

 Identify employees and positions that the company expects to sponsor in the coming months. 

2. Review current prevailing wage determinations 

Determine which cases already have prevailing wage determinations and whether those determinations remain valid.

 
3. Analyze compensation

Compare the offered wage against the applicable prevailing wage and consider how a potential methodology change could affect future sponsorships.

4. Review job descriptions

Make sure job duties and minimum requirements accurately reflect the actual position.

5. Coordinate with HR and finance

Potential wage increases can affect annual salary budgets, payroll obligations, and long-term employment costs.

6. Monitor the rulemaking process

Because the March 2026 proposal is not yet a final rule, employers should monitor DOL announcements and the Federal Register for further developments.

 
7. Obtain case-specific legal advice
Every PERM case has different facts. An immigration attorney can evaluate the position, wage level, recruitment strategy, and timing considerations before the employer commits to a particular approach. 

What EB-3 Employees Should Know?

Foreign workers should also understand that the proposed rule does not mean their green card case has automatically been delayed or denied.

 
The proposal primarily concerns the employer's labor certification obligations and the methodology for calculating prevailing wages.
If an employee is already in the PERM process, the appropriate response depends on the specific stage of the case. 

Employees should avoid making assumptions based solely on headlines about “higher PERM wages.” The actual impact can depend on whether the employer has obtained a prevailing wage determination, whether recruitment has begun, and whether the proposed rule becomes final. 

The Bigger Picture for Employment-Based Immigration

DOL's proposal reflects a broader effort to ensure that foreign-worker programs do not negatively affect U.S. workers' wages and working conditions.

 
The Department explained that the proposed methodology is intended to better align prevailing wage levels with compensation for similarly employed U.S. workers and reduce incentives for employers to use covered foreign-worker programs to replace rather than supplement U.S. workers. 

For employers, this means wage compliance is likely to remain a major focus of employment-based immigration.
For foreign workers, it underscores the importance of working with an employer that understands the PERM process and is prepared to satisfy the applicable wage and recruitment requirements. 

Final Takeaway: Preparation Is the Best Strategy

The DOL's March 2026 proposed rule could represent a major change for employers sponsoring workers through the EB-3 PERM process.

 
If finalized substantially as proposed, wage levels would increase across all four prevailing wage levels, potentially raising employer costs and requiring businesses to reconsider how they plan and budget for future green card sponsorships. 

But the rule is still a proposal. Employers should not treat the proposed wage levels as current law. 

The most practical approach is to review pending and planned PERM cases now, understand the potential financial impact, and monitor the rulemaking process closely. 

For employers, early preparation can mean fewer surprises. For foreign workers pursuing permanent residence, understanding how the employer's PERM obligations work can provide greater clarity about the road ahead. 

If your company is sponsoring an EB-3 employee—or planning to begin the PERM process—now is an excellent time to review the case strategy, prevailing wage requirements, and timing with experienced immigration counsel. 

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