H-1B Wage Rule 2026: What Higher Pay Floors Mean for You

What the government wants to change

The US Department of Labor has proposed a new rule that would raise the minimum wages employers must pay H-1B workers. Right now, employers use a four-level wage system to decide how much to pay. The government says the current Level I (entry-level) wage is too low — it is based partly on wages paid to workers who do not need a college degree. Because H-1B visas are only for specialty jobs that require at least a bachelor's degree, the government argues that comparing those workers to lower-skilled workers is unfair to both H-1B workers and American workers in the same field.

The proposed rule would push all four wage levels higher. The government's own data shows that in fiscal year 2024, over 50 percent of all Labor Condition Applications (LCAs — the forms employers must file before hiring an H-1B worker) were for computer and information technology jobs. The five most common job types included software developers, IT project managers, and computer systems engineers. The government found that some of these jobs were being classified at entry-level wages even though the positions required specialized skills. Under the new rule, employers would have to pay wages that better match the actual skill level of the job.

The financial impact could be large. The government estimates the rule could result in up to $6.85 billion per year in higher wages paid to H-1B workers. The goal, according to the Department of Labor, is to stop employers from using H-1B workers as a cheaper replacement for US workers. A recent court case — Palmer v. Cognizant Technology Solutions — found that one major tech employer was about seven times more likely to fire non-South Asian workers than South Asian workers, and replaced US employees with visa holders at lower pay grades. The proposed rule is partly a response to patterns like this.

What this means for H-1B workers and employers

If the rule takes effect, employers who sponsor H-1B workers will need to offer higher salaries to meet the new prevailing wage requirements. This could affect new H-1B petitions, H-1B extensions, and Labor Condition Applications filed after the rule's effective date. Workers already on H-1B status are not automatically affected, but their next extension or job change could be. The filing fee for Form I-129 (the petition employers file to sponsor an H-1B worker) remains $730 in 2026. Workers who also hold or are applying for a work permit using Form I-765 (the Employment Authorization Document, or EAD) face a filing fee of $520 in 2026.

What to do

• If your employer sponsors your H-1B, ask them whether your current salary meets the proposed new prevailing wage for your job title and location. You can look up wage data by occupation at the Bureau of Labor Statistics website (bls.gov).
• If you are planning an H-1B extension in 2026, talk to an immigration lawyer before your employer files Form I-129. The new wage rules could affect whether your petition is approved.
• If you are on H-1B status and your employer is paying you at Level I (entry-level), document your actual job duties. Lawyers recommend keeping records of your responsibilities, since wage level assignments must match the real complexity of your work.
• If you are also pursuing a green card through an employer (EB-2 or EB-3 categories), ask your immigration lawyer how the new prevailing wage rules may affect your Labor Condition Application or PERM (Permanent Electronic Review Management — the process employers use to prove no qualified US worker is available for the job).