H-1B wage rules may change as proposal clears federal review

A proposed rule titled “Improving Wage Protections for H-1B and PERM Employment in the United States” has completed regulatory review at the Office of Management and Budget. The proposal, submitted by the United States Department of Labor concluded review on February 20, 2026, and is marked as “Consistent with Change” at the Office of Information and Regulatory Affairs.

The rule is now positioned for publication as a proposed regulation. It is classified as economically significant and major under federal regulatory standards.

Proposal targets wage protections

The proposed rule seeks to improve wage protections under the H-1B visa and PERM labor certification programs. These programs govern temporary skilled foreign workers and employment-based permanent residence processes in the United States.


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. As per Fragomen, if adopted, the change may increase prevailing wages and raise the minimum salary employers must pay H-1B workers and offer in employment-based permanent residence cases under PERM.

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.