A Department of Labor (DOL) proposed rule would revise how prevailing wages are calculated for several employment‑based visa programs, including the permanent labor certification (PERM) process used for EB‑3 employment‑based green cards.

Published March 27, 2026, the proposal would significantly raise the wage levels that employers must meet when sponsoring foreign workers for permanent residence.

What is a prevailing wage determination

The PERM process is a required step for most employers seeking to sponsor a worker for an EB‑3 green card. It is designed to ensure that hiring a foreign worker does not negatively affect U.S. workers. PERM has two core components: a labor market test to determine whether there are sufficient U.S. workers available for the position, and a prevailing wage determination to ensure that the foreign worker will be paid at least the wage paid to similarly employed U.S. workers in the same geographic area.

Some healthcare occupations, including registered nurses, are listed on Schedule A and are exempt from the labor market test. However, employers sponsoring Schedule A workers must still obtain a prevailing wage determination (PWD) from DOL’s Office of Foreign Labor Certification before filing a labor certification application and must attest that the offered wage meets or exceeds that prevailing wage.

How prevailing wages are currently calculated

Under current regulations, DOL relies primarily on data from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics (OEWS) survey to calculate prevailing wages. Wages are assigned using a four‑tier structure that reflects increasing levels of education, experience, and responsibility. Level I generally corresponds to entry‑level positions, while Level IV reflects the highest levels of experience and skill. For more than two decades, these wage levels have been set at approximately the 17th, 34th, 50th, and 67th percentiles of OEWS wage data.

What the proposed rule would change

The proposed rule would retain the four‑tier wage structure but substantially increase the percentile used to set each wage level. Specifically, DOL proposes to raise the wage floors as such: Level I from the 17th percentile to the 34th percentile, Level II from the 34th to the 52nd percentile, Level III from the 50th to the 70th percentile, and Level IV from the 67th to the 88th percentile.

According to DOL, these changes are intended to better align prevailing wages with the wages paid to U.S. workers who are similarly employed in the occupation and area of intended employment. The department also states that the revisions are meant to strengthen program integrity by reducing incentives for employers to use visa programs to replace, rather than supplement, the U.S. workforce with lower‑paid foreign workers.

Although the rule applies to several visa categories, including H‑1B, H‑1B1, and E‑3 visas, it would also apply to the PERM program used for EB‑2 and EB‑3 green cards. The department emphasizes that these programs are closely connected, noting that a significant share of PERM applications are filed on behalf of workers who are already employed in the United States in temporary visa status.

Why this is relevant to LeadingAge members

Many LeadingAge members rely on the EB‑3 program to recruit and retain registered nurses and certified nursing assistants amid persistent workforce shortages. Because prevailing wage determinations are a required step in EB‑3 sponsorship, any changes to how those wages are calculated could affect the cost, feasibility, and timing of sponsoring workers for permanent residence. At this stage, the rule is only a proposal, and no changes are in effect. If finalized as written, the rule would apply prospectively to new and pending prevailing wage requests that rely on OEWS data; it would not impact previously approved determinations.

Comment period and next steps

The proposed rule is subject to a 60‑day public comment period. Written comments must be submitted by May 26, 2026. LeadingAge is reviewing the proposal and assessing its potential implications for aging services providers that use EB‑3 visas as part of their workforce strategies. Members with questions, concerns, or experiences related to prevailing wage determinations or EB‑3 sponsorship are encouraged to reach out to LeadingAge staff to help inform that ongoing assessment.