How to determine, look up, and comply with Department of Labor prevailing wage requirements for H-1B sponsorship.
The prevailing wage is the cornerstone of H-1B compliance. Every employer sponsoring an H-1B worker must pay at least the prevailing wage for the occupation in the geographic area where the employee will work. Understanding how wage levels are determined and how to stay compliant is essential to a successful petition and avoiding DOL enforcement actions.
The prevailing wage is the average wage paid to workers in a specific occupation within a specific geographic area. The Department of Labor (DOL) uses data from the Occupational Employment and Wage Statistics (OEWS) survey to set prevailing wages. Employers must pay the higher of the prevailing wage or the actual wage paid to similarly employed workers at the company.
DOL defines four wage levels based on experience and supervision requirements:
Use the DOL's Online Wage Library at flcdatacenter.com to look up prevailing wages. You will need the Standard Occupational Classification (SOC) code for the role, the state and metropolitan statistical area (MSA) where the employee will work, and the appropriate wage level. For example, a Level 1 Software Developer (SOC 15-1252) in San Francisco has a very different prevailing wage than the same role in rural Texas.
While you can use the Online Wage Library for LCA filings, requesting a formal Prevailing Wage Determination (PWD) from the National Prevailing Wage Center (NPWC) is recommended for PERM labor certification and provides more certainty. PWDs are valid for specific timeframes and take 6–8 months to process. Many employers request PWDs early to avoid delays in the sponsorship process.
Paying below the prevailing wage is a serious violation. The DOL Wage and Hour Division can audit employers and impose back pay, penalties of up to $35,000 per violation, and debarment from the H-1B program for up to three years. Maintain accurate payroll records and ensure raises keep pace with updated prevailing wage data, which changes annually.
Search thousands of verified H-1B sponsors by company, industry, and location.
Search H-1B Sponsors on Wisa →The prevailing wage is locked at the time the LCA is certified for the duration of that LCA's validity period (up to 3 years). However, when you file a new LCA for an extension or amendment, you must meet the current prevailing wage at that time. Budget for potential wage increases when planning long-term sponsorship.
Yes, and many employers do. The prevailing wage is a floor, not a ceiling. Paying above the prevailing wage is perfectly legal and can strengthen your petition by demonstrating the role's complexity and the worker's qualifications.
The wage level must reflect the actual job requirements, not be chosen to minimize costs. USCIS scrutinizes Level 1 wages closely — if the job duties suggest an experienced role but you file at Level 1, it may trigger an RFE. Match the level to the actual complexity, supervision, and experience required.
The base salary must independently meet the prevailing wage. However, guaranteed bonuses, commissions, and other guaranteed compensation can count toward the total. Discretionary bonuses and equity grants generally cannot be used to meet the prevailing wage requirement.