Annual DOL Prevailing Wage Updates Effective July 1st: Employers Urged to File LCAs
The Department of Labor (DOL) will implement its annual update to the prevailing wage data used for employment-based immigration programs on July 1, 2026. Because the prevailing wage serves as a required minimum salary for several visa categories, these updates routinely result in higher wage floors across the country.
Employers planning to file new or extended H-1B, H-1B1, or E-3 petitions in the near future are strongly advised to initiate their cases immediately. Filing a Labor Condition Application (LCA) prior to June 30 allows employers to lock in the current, generally lower wage rates for the entire validity period of the visa.
Background on Prevailing Wages
Under U.S. immigration law, employers must pay foreign workers holding H-1B, E-3, H-1B1, or PERM-based visas a wage that is no less than the “prevailing wage” for the occupation in the intended area of employment. This requirement ensures that the hiring of foreign nationals does not adversely impact the wages and working conditions of similarly employed U.S. workers.
The DOL determines these wage levels by dividing occupational wage data into four tiers (Level I through Level IV), which correspond to the level of experience, education, and supervision required for the specific position.
The July 1st Data Refresh
The DOL does not conduct its own continuous wage surveys. Instead, it relies on the Occupational Employment and Wage Statistics (OEWS) survey, a massive data collection effort conducted by the Bureau of Labor Statistics (BLS). Every year, the DOL updates the Foreign Labor Application Gateway (FLAG) system with newly finalized OEWS data. This annual refresh strictly goes into effect on July 1st.
Because U.S. labor market salaries generally increase over time due to standard cost-of-living adjustments, inflation, and talent competition, the July 1st data update almost always results in a corresponding increase in prevailing wage requirements. Any LCA or Prevailing Wage Determination (PWD) request filed on or after July 1st will be subject to the new, updated wage data.
Examples of Anticipated Increases
Historically, prevailing wages experience a mandatory year-over-year increase across the board, reflecting the natural growth of U.S. market salaries. In high-demand sectors such as technology and engineering, these consecutive increases compound quickly.
To illustrate the trajectory of these mandatory updates, the table below demonstrates the actual year-over-year percentage growth for a Level II (Qualified) worker across five of the common IT occupations and metropolitan areas over the last three wage cycles.
Year-Over-Year (YoY) Prevailing Wage Increases (Level II)
| Occupation & SOC Code | Metro Area (MSA) | July 2023 Update | July 2024 Update | July 2025 Update | 3-Year Compounded Growth |
|---|---|---|---|---|---|
| Software Developers (15-1252) |
San Jose-Sunnyvale, CA | +6.5% | +9.1% | +5.6% | ~22.6% |
| Computer Systems Analysts (15-1211) |
New York-Newark, NY-NJ | +4.6% | +6.3% | +4.6% | ~16.3% |
| Software QA Analysts (15-1253) |
Seattle-Tacoma, WA | +5.7% | +8.6% | +5.8% | ~21.4% |
| Info. Security Analysts (15-1212) |
Dallas-Fort Worth, TX | +4.3% | +6.8% | +5.4% | ~17.4% |
| Network & Systems Admins (15-1244) |
San Francisco-Oakland, CA | +4.9% | +7.5% | +5.7% | ~19.2% |
As demonstrated above, the annual July 1st data refresh routinely forces wage floors higher, often peaking during periods of high inflation or tight labor markets. Employers who wait until July to file their Labor Condition Applications (LCAs) will immediately be subject to the forthcoming 2026 percentage hikes.
Strategic Recommendation: An LCA locks in the prevailing wage in effect on the day the application is filed. By successfully submitting an LCA on or before June 30, employers can utilize the previous year’s lower wage metrics for up to a three-year H-1B validity period—potentially saving thousands of dollars per employee.
Action Required: File LCAs Before June 30
To avoid being subject to the higher wage data that will take effect next month, employers should identify any upcoming filings and begin preparation immediately.
Specifically, employers should prioritize:
- H-1B Extensions and Amendments: Any employee whose H-1B status expires within the next 6 to 8 months.
- New H-1B Petitions: Including individuals transitioning from F-1 OPT or other visa categories.
- H-1B1 and E-3 Filings: Which also rely heavily on LCAs and the DOL prevailing wage system.
Because the FLAG system frequently experiences high traffic, latency, and processing delays in the final days of June as employers rush to file, waiting until the last week of the month poses significant operational risks. We strongly recommend initiating your requests as soon as possible.
Further Updates and News
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About the Author: Dimo Michailov
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The Capitol Immigration Law Group has been serving the business community for over 15 years and is one of the most widely respected immigration law firms focused solely on U.S. employment-based immigration. Disclaimer: we make all efforts to provide timely and accurate information; however, the information in this article may become outdated or may not be applicable to a specific set of facts. It is not to be construed as legal advice.