The four DOL wage levels determine your H1B minimum salary, your lottery selection odds, and your green card PERM wage floor. This guide explains every level, how employers determine them, and how to look up your own wage.
H1B prevailing wage levels are the four-tier salary classification system the Department of Labor uses to set the minimum wage an employer must pay a sponsored worker — and since 2023, they directly determine your lottery selection tier. In this guide you will learn exactly how Levels I through IV are defined, how the OES data underpinning them is calculated, how to look up your wage at flcdatacenter.com, and how wage level choices by your employer affect your immigration trajectory from the H1B lottery all the way to PERM green card approval.
In FY2024, over 780,000 LCAs were filed. The majority — roughly 62% — were certified at Level I or Level II. Yet USCIS data from the same period shows Level I petitions receive RFEs at more than double the rate of Level III petitions. This mismatch between wage level filing patterns and USCIS scrutiny has major implications for workers whose employers consistently file low-level LCAs.
The four prevailing wage levels are defined by the DOL Employment and Training Administration in the Foreign Labor Certification regulations at 20 CFR 655.731. Each level corresponds to a specific percentile of the OES wage distribution for the occupational category in the geographic area, reflecting the nature of the work, experience required, and supervisory responsibilities involved.
| Level | OES Percentile | Worker Profile | RFE Rate | Lottery Odds |
|---|---|---|---|---|
| Level I | 17th percentile | Entry-level workers with basic understanding of the occupation. Perform routine tasks under close supervision. No significant prior experience required. | 38% | ~15% |
| Level II | 34th percentile | Qualified workers with good understanding of the occupation. Perform moderately complex tasks with limited supervision. Most common wage level in LCA filings. | 22% | ~28% |
| Level III | 50th percentile | Experienced workers with sound theoretical and practical knowledge. Exercise independent judgment. May provide guidance to others. | 14% | ~45% |
| Level IV | 67th percentile | Fully competent workers who are highly proficient in their occupation. May supervise others. Recognized as experts or senior contributors. | 9% | ~61% |
Level I is the most commonly misused wage level. USCIS has published guidance in multiple policy memoranda stating that Level I is appropriate only when the position genuinely requires no prior experience and involves routine, highly supervised tasks. When an employer classifies a software engineer with 5 years of experience at Level I, USCIS may issue an RFE questioning whether the position qualifies as a specialty occupation at that wage level — the argument being that a truly entry-level wage suggests the job may not actually require a specialized degree.
Level IV is comparatively rare — approximately 8% of all FY2024 LCAs — because it requires the employer to genuinely offer senior-level compensation. However, workers petitioned at Level IV enjoy the highest lottery selection probability under the current wage-based selection framework, making it an attractive path for employers competing for H1B talent.
For a detailed comparison of how different employers use wage levels, see our H1B salary comparison tool, which draws from DOL LCA disclosure data covering FY2022–FY2025.
The wage level determination process begins when an employer decides to sponsor an H1B worker. The employer must determine both the appropriate wage level (I–IV) and the specific prevailing wage for that level in the worksite's Metropolitan Statistical Area (MSA). The process involves three key steps: selecting the SOC code, identifying the MSA, and choosing between OES-based data and a private survey.
Select the SOC Code
The Standard Occupational Classification (SOC) code must accurately reflect the actual duties of the position. Employers sometimes select a lower-paying SOC code (e.g., using 'Computer Programmer' SOC 15-1251 instead of 'Software Developer' SOC 15-1252) to reduce the prevailing wage. USCIS scrutinizes SOC code selection and will issue RFEs when the duties described in the I-129 do not match the selected code.
Identify the MSA
The prevailing wage is geographically specific. The worksite address determines the MSA used for the wage determination. For remote workers, the place where work is actually performed determines the MSA — not the employer's headquarters. Multi-site LCAs require a separate wage determination for each MSA.
Obtain the Wage from FLC Data Center
Visit flcdatacenter.com, navigate to the Online Wage Library (OWL), enter the SOC code and MSA, and retrieve all four wage levels. The system returns annual and hourly figures. The employer must pay at least the prevailing wage for the selected level beginning on the H1B start date.
Determine the Actual Wage
Under INA 212(n)(1), the employer must pay the higher of the prevailing wage OR the actual wage paid to other employees in the same role with similar experience and qualifications. If a US employee with comparable experience earns $150,000 but the prevailing wage is $120,000, the required wage is $150,000.
The table below shows sample FY2025 prevailing wages across common H1B occupations and key metro areas. These figures are derived from DOL OES survey data. For exact and current figures, always verify at the official FLC Data Center .
| SOC | Title | MSA | Level I | Level II | Level III | Level IV |
|---|---|---|---|---|---|---|
| 15-1252 | Software Developer | San Francisco, CA | $130,000 | $170,000 | $215,000 | $275,000 |
| 15-1252 | Software Developer | New York, NY | $115,000 | $155,000 | $195,000 | $250,000 |
| 15-1252 | Software Developer | Seattle, WA | $120,000 | $158,000 | $200,000 | $258,000 |
| 15-2051 | Data Scientist | San Francisco, CA | $125,000 | $162,000 | $205,000 | $265,000 |
| 15-2051 | Data Scientist | New York, NY | $110,000 | $148,000 | $188,000 | $240,000 |
| 13-2051 | Financial Analyst | New York, NY | $88,000 | $118,000 | $155,000 | $200,000 |
| 17-2141 | Mechanical Engineer | Detroit, MI | $72,000 | $94,000 | $120,000 | $154,000 |
| 29-1141 | Registered Nurse | San Francisco, CA | $98,000 | $122,000 | $148,000 | $182,000 |
Source: DOL OES FY2025 data via FLC Data Center. For reference only — verify at flcdatacenter.com before filing.
Employers have two options for obtaining prevailing wage data: the free OES-based data from the DOL FLC Data Center, or a private wage survey commissioned or purchased from a third-party provider. The comparison below explains when each is used and how they differ in terms of outcomes and USCIS scrutiny.
| Feature | OES (Free) | Private Survey |
|---|---|---|
| Data source | Bureau of Labor Statistics OES survey | Employer-commissioned salary surveys (e.g., Mercer, Willis Towers Watson) |
| Update frequency | Annual (July–October) | Varies; often 1–3 years old |
| Cost to employer | Free via flcdatacenter.com | $5,000–$50,000 per survey |
| Acceptance by DOL | Always accepted | Accepted if survey meets 20 CFR 655.731(b)(3) criteria |
| Result vs OES | Baseline | Often lower than OES — that is the point |
| USCIS scrutiny | Low | High — requires detailed documentation |
| Best for | Most petitions; straightforward roles | Niche roles, senior positions, geographic anomalies |
Private surveys are primarily used when OES data would result in a wage level that an employer believes is higher than what the market actually bears for a specific niche role. For example, a fintech startup might argue that the OES wage for "Software Developer" (15-1252) overstates the wage for a specific entry-level role in their company culture. However, DOL and USCIS have increasingly rejected private surveys that do not clearly meet the regulatory criteria at 20 CFR 655.731(b)(3)(iii).
For PERM green card applications, employers must use a DOL-issued prevailing wage determination (PWD) — private surveys are not permitted for PERM. This creates a situation where the LCA wage (used for H1B) may be based on a private survey while the PERM PWD (issued by DOL) is based on OES data and often higher. Workers should be aware that the green card process may require a wage increase. Learn more in our H1B to green card roadmap.
Employers who receive a prevailing wage determination from OFLC (for PERM purposes) can challenge it through a formal redetermination process. For H1B LCA purposes, wage level is self-certified — there is no formal DOL review before filing. However, workers who believe their employer filed an LCA at an inappropriately low wage level have recourse.
Under 20 CFR 655.731, a worker or anyone adversely affected by an LCA can file a complaint with the DOL Administrator for Wage and Hour within 12 months of the violation. The WHD can then investigate and determine whether the wage level is appropriate. If the WHD finds that a Level I classification was used for what is actually a Level III position, the employer can be ordered to pay back wages reflecting the correct level. See our H1B wage complaint guide for step-by-step filing instructions.
For PERM prevailing wage determinations issued by OFLC, an employer can request a redetermination within 30 days of receiving the PWD. The redetermination request must present evidence justifying a different wage level — such as showing that the position genuinely requires no more than entry-level experience. If the redetermination is unfavorable, the employer can appeal to the BALCA (Board of Alien Labor Certification Appeals).
The DOL Foreign Labor Certification wage page provides official guidance on wage determinations, including the O*NET-based methodology DOL uses to assign wage levels to job duties described in PERM applications.
Prevailing wages are determined at the Metropolitan Statistical Area (MSA) level — meaning a software developer in San Francisco has a significantly higher minimum wage than the same developer in rural Nebraska. The geographic component of prevailing wage is one of the most important concepts for both employers and H1B workers to understand.
When an H1B worker changes worksite locations to a new MSA, the employer must file a new LCA reflecting the prevailing wage in the new location before the worker begins work there. For example, a worker whose LCA specifies New York, NY (Level II: ~$155,000 for software developer) who is transferred to Austin, TX must have a new LCA filed at the Austin Level II wage (~$130,000) before the transfer. Failure to file a new LCA before the transfer is an LCA violation.
Short-term worksite assignments (typically under 30 workdays per year in an MSA) have different rules and may not require a new LCA if the worker maintains a regular worksite. However, indefinite assignments or placements exceeding 60 continuous workdays generally require a new LCA. This is particularly relevant for consulting and IT staffing arrangements — for more on those implications, see our H1B job change guide.
Remote work has added complexity to MSA-based prevailing wages. USCIS and DOL have clarified that when an H1B worker works entirely from their home, the home address MSA determines the prevailing wage — not the employer's headquarters. This has significant financial implications for companies headquartered in high-wage metros whose remote workers live in lower-cost areas.
The wage-based lottery selection framework introduced for FY2024 and continuing through FY2027 prioritizes H1B registrations from workers who will be paid at higher wage levels. The selection occurs in four sequential rounds: first all Level IV registrations are selected until the cap is reached or exhausted, then Level III, Level II, and finally Level I.
In practice, this means a worker offered Level IV wages has approximately a 61% probability of selection in any given lottery year — compared to just 15% for a Level I worker. Over three consecutive years, the cumulative selection probability for a Level IV worker exceeds 90%, while Level I workers face cumulative odds of less than 40%.
This framework has directly incentivized some employers to increase offered wages to secure higher-tier lottery selection, particularly for critical talent. For a detailed analysis, see our H1B prevailing wage lookup tool where you can see how specific wages map to lottery tiers for your role and location.
The USCIS H-1B specialty occupations page provides official updates on the lottery selection process and any rule changes for upcoming fiscal years.
The prevailing wage is even more consequential for the PERM labor certification process — the first step toward an employment-based green card for most H1B workers. For PERM, the employer must obtain a formal Prevailing Wage Determination (PWD) from OFLC before beginning the mandatory recruitment process. Unlike H1B LCAs, self-determination is not permitted for PERM.
OFLC typically issues PERM PWDs at Level III or Level IV, reflecting that green card positions are generally not entry-level. This means many workers who held H1B positions at Level I or Level II wages will need a wage increase when their employer begins the PERM process. Some employers include a clause in offer letters acknowledging that the wage will be increased to the PERM prevailing wage when the labor certification is filed.
The PERM process also requires that the job requirements listed in the PERM application match what the employer genuinely needs for the position — they cannot add requirements solely to make a US worker seem unqualified. This requirement, combined with the prevailing wage determination, makes PERM more rigorous than the H1B LCA process.
For a complete breakdown of the path from H1B to green card, including how wage levels affect your PERM timing and priority date, read our H1B to green card roadmap.
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Sumit Patel
SMIEEE · FBCS · FIETE | 16+ years data engineering | 30+ peer-reviewed publications
Sumit built H1BVisaJobs.com on 10 GB+ of DOL LCA disclosure data spanning FY2022–FY2025. He has analyzed over 3 million H1B petitions and writes authoritatively on prevailing wage compliance, lottery mechanics, and visa-to-green-card strategy. All immigration data on this site comes from primary government sources. Read full bio →