The Department of Labor assigns prevailing wage levels to every H1B position. Understanding wage levels is critical for both approval odds and your actual compensation. **The four DOL wage levels:** **Level I (17th percentile):** Entry-level. Workers have only basic understanding of the occupation. They perform routine tasks that require limited, if any, exercise of judgment. Typical: 0–2 years experience, no supervisory responsibility. **Level II (34th percentile):** Qualified. Workers have attained a reasonably proficient level of competence. They perform tasks requiring judgment. Typical: 2–5 years, minimal supervision. **Level III (50th percentile):** Experienced. Workers have a sound understanding of the occupation and have attained, through experience, special skills or knowledge. Typical: 5–8 years, may supervise others. **Level IV (67th percentile):** Fully competent. Workers complete tasks independently and may be expected to supervise others. They are at the highest level of expertise in the occupation. **Why wage levels matter:** Filing at Level I for a 5-year experienced engineer is a major red flag — USCIS may deny or RFE arguing the wage level doesn't match the stated experience. Level I is appropriate for true entry-level recent graduates. Aggressive downleveling by employers to reduce salary costs is a common audit trigger. **2026 prevailing wages (Software Engineer, San Francisco MSA):** Level I ~$115K, Level II ~$148K, Level III ~$182K, Level IV ~$215K.