Everything you need to know about how prevailing wages work in the H-1B program — wage levels, determination process, SOC codes, and employer obligations.
The prevailing wage is the foundation of H-1B compensation law. Every H-1B employer must pay at least the prevailing wage for the occupation and geographic area where the worker will be employed. Understanding how prevailing wages are determined, what the four wage levels mean, and how to verify your wage is critical for both H-1B workers protecting their rights and employers ensuring compliance. This comprehensive guide covers the entire prevailing wage system as it applies in 2026.
| Company | Total H-1B Filings |
|---|---|
| Amazon | 55,150 |
| Microsoft | 34,626 |
| 33,416 | |
| Infosys | 32,840 |
| Tata Consultancy Services | 28,950 |
| Cognizant | 26,700 |
| Deloitte | 18,200 |
| Apple | 15,800 |
| Meta | 14,900 |
| JPMorgan Chase | 12,400 |
The prevailing wage system is administered by the Department of Labor's Office of Foreign Labor Certification (OFLC). When an employer files a Labor Condition Application (LCA) for an H-1B worker, they must specify the Standard Occupational Classification (SOC) code for the position and the geographic area where the worker will be employed. The DOL then determines the applicable prevailing wage based on data from the Bureau of Labor Statistics' Occupational Employment and Wage Statistics (OEWS) survey.
Prevailing wages are divided into four levels, each corresponding to a percentile of wages in the occupation and area. Level 1 (Entry) is the 17th percentile — intended for positions requiring basic understanding and limited experience. Level 2 (Qualified) is the 34th percentile — for positions requiring a solid understanding and moderate experience. Level 3 (Experienced) is the 50th percentile (median) — for positions requiring advanced knowledge and significant experience. Level 4 (Fully Competent) is the 67th percentile — for positions requiring expert knowledge and extensive experience.
The correct wage level is determined by the complexity of the specific job duties, the level of independent judgment required, the degree of supervision, and the experience needed. A common area of dispute is when employers classify experienced workers at Level 1 to minimize wage obligations. USCIS has increasingly scrutinized wage levels in H-1B petitions, and filing at Level 1 for roles that clearly require experienced workers can trigger Requests for Evidence (RFEs) or denials.
A: Visit the DOL's Foreign Labor Certification Data Center at flag.dol.gov. Select the Online Wage Library and enter your SOC code, state, and metropolitan area. The system will display prevailing wages for all four levels. You can also request a formal prevailing wage determination (PWD) from the OFLC, which takes 3-6 months but provides an authoritative determination.
Q: Can my employer file at Level 1 if I have 5+ years of experience?
A: This is a red flag. Level 1 is intended for entry-level positions requiring basic understanding. Filing at Level 1 for an experienced worker can result in an RFE from USCIS and is a common tactic used to suppress wages. If your employer files at Level 1 and you have significant experience, the DOL or USCIS may challenge the filing. Consult an immigration attorney if you believe your wage level is incorrect.
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Search H-1B Sponsors on Wisa →Level 1 (Entry) is the 17th percentile — for positions requiring basic understanding. Level 2 (Qualified) is the 34th percentile — for moderate experience. Level 3 (Experienced) is the 50th percentile (median) — for advanced knowledge. Level 4 (Fully Competent) is the 67th percentile — for expert-level roles. The correct level depends on job complexity, supervision needed, and experience required.
The DOL uses data from the Bureau of Labor Statistics' Occupational Employment and Wage Statistics (OEWS) survey, which collects wage data from employers across the country. Prevailing wages are calculated by SOC occupation code and Metropolitan Statistical Area (MSA). The OFLC Online Wage Library publishes these wages annually, and employers can also request formal prevailing wage determinations.
The prevailing wage is the DOL-determined minimum for the occupation and area. The actual wage is what the employer pays other employees with similar experience in the same role. H-1B employers must pay the HIGHER of these two amounts. If the employer pays U.S. workers $150,000 for a role but the prevailing wage is $120,000, the H-1B worker must be paid at least $150,000.
The prevailing wage locked in at the time of LCA filing remains valid for the LCA's duration (typically up to 3 years). However, when the LCA is renewed or a new petition is filed, the current prevailing wage applies. Prevailing wages are updated annually by the OFLC based on new OEWS survey data, so wages can increase between filing periods.