What Is the Prevailing Wage for H-1B?
Quick Answer
The prevailing wage is the minimum salary an employer must pay an H-1B worker, as determined by the Department of Labor (DOL). It is based on the specific occupation, geographic area, and experience level, and is divided into four wage levels. Employers must attest to paying at least the prevailing wage on the Labor Condition Application (LCA).
Key Takeaway
The prevailing wage protects both H-1B workers and US workers by ensuring fair compensation. Check the DOL's Foreign Labor Certification Data Center to look up the prevailing wage for your occupation and location before accepting an H-1B position.
How the Prevailing Wage Is Determined
The prevailing wage is the average wage paid to workers in similar occupations in the same geographic area. The Department of Labor (DOL) determines prevailing wages using data from the Occupational Employment and Wage Statistics (OEWS) survey published by the Bureau of Labor Statistics. Employers can also request a prevailing wage determination (PWD) directly from the DOL's National Prevailing Wage Center.
The wage is based on three factors: the Standard Occupational Classification (SOC) code for the position, the metropolitan statistical area (MSA) or geographic location where the work will be performed, and the wage level (I through IV) based on the experience, education, and skill requirements of the position. These three factors together determine the minimum salary the employer must offer.
Employers must pay the H-1B worker the higher of either the prevailing wage or the actual wage paid to other employees with similar experience and qualifications in the same position. This dual requirement is designed to prevent H-1B workers from being underpaid relative to their peers.
The Four Wage Levels
The DOL defines four wage levels that correspond to increasing levels of experience, education, and supervisory responsibility. Level I represents entry-level positions requiring basic understanding of the occupation. Level II represents qualified positions requiring some experience. Level III represents experienced positions requiring specialized knowledge. Level IV represents fully competent positions requiring high levels of expertise or supervisory duties.
In practice, most H-1B petitions for new graduates are filed at Level I or Level II. The wage difference between levels can be substantial—in high-cost areas like San Francisco or New York, the gap between Level I and Level IV for a software developer can exceed $80,000 per year. USCIS has scrutinized Level I wages in certain specialty occupation adjudications, particularly for positions described as requiring significant expertise.
- Level I (17th percentile): Entry-level, limited experience, basic duties
- Level II (34th percentile): Qualified, some experience, moderate complexity
- Level III (50th percentile): Experienced, specialized skills, independent judgment
- Level IV (67th percentile): Expert, supervisory, highest responsibility
The Labor Condition Application (LCA)
Before filing an H-1B petition, the employer must submit a Labor Condition Application (LCA) to the DOL, attesting that they will pay the H-1B worker at least the prevailing wage. The LCA also requires attestations about working conditions, strike/lockout status, and notification to workers or their bargaining representative.
The LCA must be certified by the DOL before the H-1B petition can be filed with USCIS. DOL processing of LCAs is typically completed within 7 business days. The employer must post the LCA at the worksite for 10 business days to provide notice to US workers. The certified LCA is then included as part of the I-129 H-1B petition.
Employers who fail to pay the prevailing wage can face penalties including back pay, fines of up to $35,000 per violation, and debarment from the H-1B program. H-1B workers who are being paid below the prevailing wage should report violations to the DOL Wage and Hour Division.
Looking Up Prevailing Wages
You can look up prevailing wages for any occupation and location using the DOL's Foreign Labor Certification Data Center (FLCDATACENTER.com). Enter the SOC code or occupation title, select the state and area, and the tool will display the four wage levels. You can also search LCA disclosure data to see what wages other employers are offering for similar positions.
H-1B salary data is publicly available through the LCA disclosure file published quarterly by the DOL. Websites like H1BGrader, MyVisaJobs, and the DOL's own disclosure data allow you to search by employer, job title, and location to see actual H-1B salaries being offered. This data is valuable for salary negotiations and understanding market rates for your position.