H-1B Wage Levels: Tiers, Selection, and Actual Wage Rules

H-1B wage levels are a four-tier prevailing wage scale the Department of Labor uses to set the minimum salary for an H-1B worker, with each tier tied to a percentile of local pay for that occupation: roughly the 17th percentile at Level I, 34th at Level II, 50th at Level III, and 67th at Level IV. The tier fixes the prevailing wage floor, but that’s only half the rule. The employer must actually pay the higher of two numbers: the prevailing wage for the assigned level, or the “actual wage” the employer already pays its own workers in the same role with comparable qualifications.¹

The Four Tiers and What Each One Covers

Each level maps a description of the job to a percentile of the wage distribution for that occupation in the specific metropolitan area. The tier isn’t about the worker in the abstract; it’s about how much education, experience, judgment, and supervisory responsibility the position itself demands compared to the norm for the occupation.

Level I (Entry) is for routine work performed under close supervision, by someone still gaining initial experience in the field. Set near the 17th percentile of local wages for the occupation.
Level II (Qualified) covers moderately complex assignments handled with limited independent judgment, by a worker with enough background to go beyond entry tasks. Near the 34th percentile.
Level III (Experienced) is for workers who understand the full scope of the occupation, handle complex tasks, exercise independent judgment regularly, and may supervise junior staff. Around the 50th percentile, which is the local median.
Level IV (Fully Competent) applies to deep mastery: planning and directing work independently, providing high-level technical guidance, or holding a leadership role. Near the 67th percentile.

The dollar gap between Level I and Level IV can be large. For a software developer in San Francisco, the spread between the 17th and 67th percentile can run $50,000 or more. That’s why the level assignment carries so much weight, and why it’s the piece workers and DOL investigators tend to scrutinize.

The underlying dollar figures come from the Bureau of Labor Statistics Occupational Employment and Wage Statistics survey (OEWS), broken out by Metropolitan Statistical Area, so the prevailing wage for the same occupation looks very different in rural Iowa than in Manhattan.² Current figures are searchable through the wage tool at flag.dol.gov.

How the Department of Labor Picks the Level

The level isn’t chosen by the employer’s preference or the worker’s resume alone. A wage analyst at the National Prevailing Wage Center compares the employer’s stated requirements and duties against baseline expectations for that occupation in the Occupational Information Network (O*NET), which groups every occupation into a Job Zone reflecting typical education, training, and experience.³

The analyst works through a points-based worksheet that starts at Level I. Points are added when the employer’s requirements exceed the O*NET baseline: more education than typical, experience beyond the usual range, supervisory duties, or a license or certification not standard for the occupation. Enough points push the determination up through the tiers.³

When a job blends duties from occupations with different classification codes, DOL defaults to the code tied to the higher-paying occupation. A hybrid role that mixes engineering and piloting, for instance, gets priced against whichever of the two commands more pay.⁴

The Actual Wage: The Number That Can Override Your Tier

The prevailing wage is the floor set by federal survey data. The actual wage is the floor set by the employer’s own pay practices. Whichever is higher wins.⁵

The prevailing wage exists to stop an employer from importing labor at below-market rates for the region. The actual wage exists to stop an employer from paying H-1B workers less than the U.S. workers next to them doing the same job. If a company already pays its Denver software engineers $130,000 and the Level II prevailing wage for that role and city is $115,000, the H-1B worker must be paid at least $130,000.

When calculating the actual wage, the employer has to account for experience, education, job responsibilities, specialized knowledge, and other legitimate business factors that shape pay for comparable workers.¹ If there are no other employees in a comparable role at that location, the actual wage is simply what the employer pays the H-1B worker. The employer must also apply the same pay adjustments given to other employees in the same occupation, such as cost-of-living raises or promotions.

Part-Time Positions

Part-time H-1B roles are allowed, but the wage floor is prorated, not reduced arbitrarily. If the full-time prevailing wage for the occupation is $120,000 based on a 40-hour week, a 20-hour-per-week position must pay at least $60,000. The Labor Condition Application has to specifically state the position is part-time and list the exact hours or a narrow range.¹ An employer can’t petition for full-time work and quietly let the worker put in fewer hours. When the LCA lists a range, pay must cover at least the average hours normally worked and never fall below the stated minimum.

A Proposed 2026 Change to the Percentiles

In March 2026, the Department of Labor published a proposed rule that would raise the percentile target for every tier: roughly the 34th, 52nd, 70th, and 88th percentiles instead of the current 17th, 34th, 50th, and 67th.⁶ If finalized, required salaries would rise across all four levels. The rule is still in notice-and-comment and has not taken effect, so current determinations continue to use the existing percentiles. Anyone planning a new prevailing wage request should track the rule’s progress before assuming today’s numbers will hold.

If Your Level or Pay Looks Wrong

The most common way workers discover a problem is by comparing what they earn to what the employer certified on the LCA. Every H-1B employer has to keep a public access file for each LCA and make it available within one business day of filing. Anyone can ask to see it.⁷ The file must contain the LCA itself (Form ETA 9035), the H-1B worker’s pay rate, a description of the actual wage system used to set pay for comparable workers, the prevailing wage rate and its source, proof the posting notice was given, and a summary of benefits offered to U.S. and H-1B workers.⁸ You don’t get to keep copies, but you can view, photograph, or transcribe the documents.

If the pay you’re receiving is less than what the LCA certifies, you can file a complaint with the Department of Labor’s Wage and Hour Division using Form WH-4, or by calling 1-866-487-9243.⁹ Complaints are confidential and the law prohibits your employer from retaliating for filing one or cooperating with an investigation.¹⁰ Bring pay stubs, the offer letter, the LCA number if you have it, and a description of the work you actually perform. Documentation shortens the investigation.

Confirmed underpayments trigger back wages for the full shortfall, and violations can carry fines and program debarment against the employer.¹¹

1
eCFR. 20 CFR 655.731 – What Is the First LCA Requirement, Regarding Wages
2
U.S. Department of Labor. Prevailing Wage Information and Resources
3
U.S. Department of Labor. Prevailing Wage Determination Policy Guidance
4
U.S. Department of Labor. Prevailing Wage Determination Policy Guidance
5
Flag.dol.gov. Prevailing Wages
6
U.S. Department of Labor. US Department of Labor Issues Proposed Rule Revising Prevailing Wage Methodology
7
U.S. Department of Labor. Fact Sheet 62F – What Records Must an H-1B Employer Make Available to the Public
8
eCFR. 20 CFR 655.760 – What Records Are to Be Made Available to the Public
9
U.S. Department of Labor. Instructions for Form WH-4 – H-1B Nonimmigrant Information
10
U.S. Department of Labor. How to File a Complaint
11
eCFR. 20 CFR Part 655 Subpart I – Enforcement of H-1B Labor Condition Applications