The U.S Department of Labor (DOL) has successfully cleared a federal review of a proposal to raise H-1B and PERM wage requirements.
The proposal, titled “Improving Wage Protections for H-1B and PERM Employment in the United States,” completed its review at the Office of Management and Budget (OMB) on February 20, 2026, marking a critical step toward its formal publication in the Federal Register.
The cleared proposal to raise H-1B and PERM wage requirements. is categorized as “economically significant,” signaling that its impact on the U.S. economy and the private sector will be substantial.
While the full text remains confidential until official publication, immigration experts anticipate the rule will restructure the current four-level prevailing wage system.
By raising the minimum salary benchmarks, the administration seeks to ensure that foreign workers are not used to undercut the domestic labor market.
”This rule is designed to prioritize high-skilled talent while ensuring that the floor for compensation remains competitive with American standards,” noted a policy analyst familiar with the filing.
Further checks revealed that according to the regulatory filing, the proposal falls under the Department of Labor’s Employment and Training Administration. It does not carry a legal deadline and is not linked to homeland security, federalism, or pandemic response measures.
The filing indicates that the rule would have private sector implications and may affect businesses, including small entities.
According to the update, the proposed rule could revise the prevailing wage system used in both programs.
The review requires significant federal regulations to undergo OMB scrutiny before publication. With the review now concluded, the next step is publication in the Federal Register, where the full text will be made public.
The timing of this development is particularly sensitive for businesses. With the FY 2027 H-1B cap registration period set to open in early March 2026, many companies are already grappling with the new wage-weighted lottery system.
If the updated H-1B and PERM wage requirements are implemented quickly, employers may need to reassess their budget projections for both temporary H-1B specialty workers and long-term green card sponsorships through the PERM process.
