H-1B Wage Levels and Prevailing Wage: How DOL Sets Your Salary

The "prevailing wage" is the floor your employer must pay you on H-1B, but it's far from a simple number. The Department of Labor categorizes every role into four wage levels based on the role's complexity, supervision, and required experience. The level your job is filed under ripples into your salary, your RFE risk, your green card category, and even how easily you can negotiate a raise later.

Most H-1B candidates discover the wage level system only after their offer arrives, and only the savvy ones realize they can influence it. This guide walks through how DOL determines wage levels, what each level actually means, and how to read your LCA so you know what you're being filed under before you sign.

The four wage levels

Level 1, entry level

Roles requiring "basic understanding of duties and tasks" and "close supervision." DOL says Level 1 is appropriate for fresh graduates with no relevant work experience. Salaries are at the 17th percentile of the wage distribution for the role and location.

Level 2, qualified

Roles requiring "moderately complex tasks" with "supervision." Typical of workers with 2+ years of experience or specialized training. Salaries are at the 34th percentile.

Level 3, experienced

Roles requiring "judgment in independently performing tasks" and minimal supervision. Typical of senior individual contributors. Salaries are at the 50th percentile.

Level 4, fully competent

Roles requiring "advanced independent judgment" and often supervisory responsibility. Salaries are at the 67th percentile.

How DOL decides which level applies

The employer (through their attorney) selects a level using a 5-factor worksheet from the DOL Prevailing Wage Determination Policy Guidance:

1. Education: Does the role exceed the standard requirement? If yes, +1 level.
2. Experience: Does the role require experience above the SOC code minimum? If yes, +1 level.
3. Special skills: Specialized requirements beyond the standard role? +1 level.
4. Supervision: Does the role supervise others? +1 level.
5. Travel / hazardous conditions: Rare for H-1B but possible +1.

The base level is 1. Adding factors moves the role up. A typical post-grad software engineer with 3 years of experience and no supervisory duties files at Level 2; a senior engineer with 7+ years files at Level 3.

Why your level matters beyond salary

RFE risk

Level 1 wage filings for "senior" or "specialty" job titles trigger USCIS scrutiny. The agency questions whether the role is truly a specialty occupation if the employer rates it as entry-level. Level 1 RFEs are common; Level 2+ filings rarely trigger wage-related RFEs.

Green card path

EB-2 requires that the role normally require a master's degree OR a bachelor's plus 5 years of progressive experience. Level 1 filings are difficult to convert to EB-2 PERM later, often forcing workers into the longer EB-3 queue.

Future raises and titles

The LCA wage is a floor for the duration of your H-1B period (typically 3 years). Below-market wages compound. You'll start your next negotiation from this number, not from market rate.

How to read your LCA

The LCA (Form ETA-9035) is a public document. Before signing your offer, ask your employer's HR or attorney for a copy. Look at:

• SOC code. The occupation classification (e.g., 15-1252 for Software Developers). Check this matches your real role.
• Wage level: Level 1, 2, 3, or 4. Anything Level 1 on a senior role is a red flag.
• Prevailing wage source, typically OES (Occupational Employment Statistics) or a private survey.
• Worksite location. The wage is location-specific. A NYC role at SF wage is non-compliant.
• Period of intended employment, typically 3 years.

What to do if your level seems wrong

If you suspect your offer is being filed at a lower level than your role warrants:

• Look up the prevailing wage for your role and zip code on FLAG (flag.dol.gov).
• Compare to your offered salary. If your offer is above the next-level threshold, push to file at the higher level. The employer may resist (it's a fee impact), but it benefits you long-term.
• If the employer refuses, weigh whether to accept. A Level 2 filing at a startup is often a better long-term position than Level 1 at a big-name employer.

Special wage sources

Universities and non-profit research orgs can use a private wage survey (e.g., CUPA-HR for higher ed) instead of OES. This often produces lower numbers. One reason academic H-1B salaries lag private industry significantly.

For specialty roles where OES doesn't have a clean match (machine learning research, blockchain engineering), employers can commission a custom wage survey. These take 8-12 weeks but can be more accurate.

Pushing back on a Level 1 filing, a case study

Take Aisha, a senior data engineer with six years of experience. Her offer letter from an SF startup arrived with an LCA showing Level 1 at $108,000. Well below her actual offered salary of $172,000.

"A friend who's an immigration attorney looked at the LCA and her face dropped. She told me Level 1 for a senior role would haunt me at PERM. I pushed back with HR. Politely, with specific reference to my six years of progressive experience. They re-filed at Level 3 with a $148,000 prevailing wage. The startup paid me my offered $172,000. Two years later when PERM started, EB-2 was actually achievable. If we'd gone with Level 1, EB-3 would have been my only option."

Takeaway: The wage level on your LCA shapes your salary floor and your green card path. Push to review before signing. Most candidates only learn this exists after it's too late to change.

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