Key Points
- DOL has published the H-1B Prevailing Wage Final Rule in the Federal Register
- The Final Rule will take effect March 15, 2021
- The Final Rule will be implemented in multiple phases
- All LCAs and PWDs are subject to the new wages on July 1, 2024
Overview
Today, the Department of Labor (DOL) published the H-1B Prevailing Wage Final Rule in the Federal Register as anticipated. The agency also outlined the rule’s phased implementation plan, with new wage levels effective on July 1, 2021.
What are the Changes?
As it previously announced, the DOL has published the H-1B and PERM Prevailing Wage Final Rule in the Federal Register. The Final Rule modifies the Interim Final Rule that the agency issued on October 8, 2020. The Final Rule is effective on March 15, 2021.
The new Prevailing Wage Levels are as follows:
Level I: 35th percentile
Level II: 53rd percentile
Level III: 72nd percentile
Level IV: 90th percentile
In addition to setting new prevailing wages, the Final Rule includes a four-stage wage adjustment period for some H-1B employees who are seeking permanent residence status.
What Should Employers and Applicants Know?
In Phase I of the Final Rule, all Prevailing Wage Determinations (PWDs) that are issued and all Labor Condition Applications (LCAs) that are filed between March 15, 2021 through June 30, 2021, will be subject to current prevailing wage levels. For Phase II, the new Final Rule wage levels will begin with applications filed between July 1, 2021 and June 30, 2022. In Phase III of the Final Rule’s implementation, which begins on July 1, 2022 and continues thereafter, the new wage levels are fully effective. There are no wage adjustments in this phase.
Looking Ahead
Additional litigation is expected. Updates will be provided as available.
