Prevailing Wage Levels I-IV: How the DOL Assigns Each Level

The Department of Labor sorts sponsored job offers into four prevailing wage levels tied to local pay data for the occupation: Level I sits near the 17th percentile, Level II near the 34th, Level III near the 50th, and Level IV near the 67th.¹ Every determination starts at Level I and moves up based on a five-step worksheet that scores the employer’s education, experience, special skill, and supervisory requirements against the O*NET baseline for the occupation. Employers sponsoring workers under H-1B, H-1B1, E-3, or PERM must pay the prevailing wage for the assigned level, or the wage they already pay similar employees, whichever is higher.²

Where the Level Numbers Come From

Each level is a point on the local pay distribution for that occupation, drawn from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics survey. Level I is the average wage in the bottom third of the distribution, which lands near the 17th percentile. Level IV is the average of the upper two-thirds, near the 67th percentile. Levels II and III are spaced evenly between those anchors, at roughly the 34th and 50th percentiles.¹

Because the data is broken out by occupation and geographic area, the same title carries a very different dollar figure in San Francisco than in Tulsa. You can look up the current prevailing wage for any occupation and location through the OFLC Online Wage Library before you file anything.³

The prevailing wage is a floor, not a ceiling. If you already pay your U.S. employees more than the prevailing wage for a given role, you must pay the sponsored worker at that higher “actual wage” rate instead.²

How the DOL Assigns a Level: The Five-Step Worksheet

Every prevailing wage determination starts at Level I. The National Prevailing Wage Center then works through a five-step worksheet, comparing the employer’s stated job requirements against the O*NET baseline. Each time the requirements exceed the norm, points are added, and the total decides the final level.⁴

Step 1 sets the baseline. The reviewer identifies the correct O*NET-SOC code and records the typical education, experience, and Specific Vocational Preparation range for that occupation.
Step 2 scores experience. Requiring experience at the low end of the O*NET range adds 1 point, the high end adds 2, and requiring more experience than the range provides adds 3.
Step 3 scores education. Requiring a Master’s when the standard is a Bachelor’s adds 1 point. Requiring a Ph.D. when the standard is a Bachelor’s adds 2.
Step 4 scores special skills not reflected in the O*NET profile. A foreign language requirement other than English almost always counts. Professional licenses are evaluated case by case.
Step 5 scores supervisory duties. If the role involves supervising other workers and supervision is not already a standard duty for that occupation, 1 point is added.

The points are totaled. Zero stays at Level I, 1 point yields Level II, 2 points yield Level III, and 3 or more points yield Level IV. Anything above the Level IV threshold is capped there.⁴

A Note on Professional Licenses

A license does not automatically add a point. If it is a standard entry requirement for the occupation, such as a law license for attorneys or a teaching certificate for teachers, no point is awarded. Where licenses have tiers, though, requiring the higher tier (a Master Plumber where Journeyman is the entry standard) can justify a point under experience, education, or special skills. The reviewer will not double-count the same license across steps.⁴

What Each Level Looks Like in Practice

Level I: Entry-Level

Level I applies to jobs where the worker performs routine, clearly defined tasks under close supervision. The employer’s education and experience requirements do not exceed the O*NET baseline, and the role calls for minimal independent judgment. Nothing in the job description pushes the score above zero.⁴

Level I does not mean unskilled. H-1B positions by definition require at least a bachelor’s degree in a specialty field. A junior software developer fresh out of college and a senior architect both hold specialty occupations; the junior role simply sits at the introductory end of that specialty.

Level II: Qualified

Level II covers workers who have moved past the introductory stage. They handle more than routine assignments, exercise moderate independent judgment, and operate with less direct oversight. On the worksheet, these positions score 1 point above the Level I baseline. A single elevated requirement is usually enough: requiring a master’s when a bachelor’s is the standard, or experience at the low end of the O*NET range when the occupation typically starts below it.⁴

Level III: Experienced

Level III reflects an experienced worker who handles complex assignments with significant autonomy and exercises independent judgment regularly. These positions score 2 points, which usually means the employer’s requirements exceed the O*NET baseline in two separate categories. A role requiring both a master’s degree (when the norm is a bachelor’s) and experience at the high end of the O*NET range is a textbook combination. Work at this level is reviewed for results and sound judgment rather than step-by-step accuracy.⁴

Job titles that include “lead” or “senior” are flags for the reviewer to consider Level III. If the role involves supervising others and the occupation does not inherently include supervision (as a “First-Line Supervisor” classification would), Step 5 picks up 1 point. Combined with even one elevated requirement in education or experience, that supervision point pushes the determination to Level III. If supervision is customary for the occupation itself, no point is added, because the prevailing wage data already accounts for it.⁴

Level IV: Expert

The highest tier is for positions that score 3 or more points. These roles demand mastery of advanced techniques, consistent high-level judgment, and little to no direct oversight. Reaching Level IV usually requires the employer’s requirements to exceed the O*NET baseline across education, experience, and at least one additional factor. A role requiring a Ph.D. (2 education points above a bachelor’s-degree occupation) plus experience above the O*NET range (3 experience points) lands well into Level IV territory. The total is capped there regardless of how high the point count climbs.⁴

Requesting a Determination

Start by identifying the correct O*NET-SOC code for the position through O*NET OnLine, which lists typical tasks, education, experience ranges, and Specific Vocational Preparation scores.³ Getting the code right matters more than any other step. Pick the wrong occupation and every downstream number is off.

The formal request goes on Form ETA-9141, which requires a detailed job title, specific duties, and the minimum education and experience the employer demands. Supervisory responsibilities, travel requirements, and special skills all need to be described clearly, because the reviewer compares these entries against the O*NET baseline when running the worksheet.⁴ Vague descriptions are where most wage-level disputes start. The completed form is submitted electronically through the Foreign Labor Application Gateway (FLAG).⁵

Once issued, a prevailing wage determination is valid for no less than 90 days and no more than one year from the determination date. The specific expiration is printed on the determination itself. If it expires before you file your labor condition application or begin required recruitment, you need a new one.⁶

If You Think the Level Is Wrong

Two layers of review are available. The first is a redetermination request to the director of the National Prevailing Wage Center, filed within 30 days of the original determination. The request must identify the specific determination being challenged, lay out the grounds for disagreement, and include all materials from the original record. The director reviews that same record and can affirm or modify the outcome.⁷

If the redetermination still comes back unfavorable, the employer can escalate to the Board of Alien Labor Certification Appeals within 30 days of the director’s decision. The appeal is limited to the existing record and legal arguments; no new evidence.⁷ The tight 30-day deadlines at each stage mean employers who suspect an error should begin preparing their challenge immediately.

Proposed Changes to the Percentile Anchors

In March 2026, the DOL published a proposed rule that would significantly raise the percentile floors for all four levels. Level I would move from the 17th percentile to the 34th, Level II from the 34th to the 52nd, Level III from the 50th to the 70th, and Level IV from the 67th to the 88th.¹ The comment period runs through May 26, 2026, and the rule has not been finalized as of that date.

If adopted, the impact would be substantial. A Level I wage that currently sits near the bottom of the local pay scale would jump to roughly the median entry point, and Level IV would move close to the 90th percentile. The rule’s final form, timing, and whether it survives legal challenge are all uncertain, so employers filing new prevailing wage requests should track the rulemaking closely.

1
Federal Register. Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States
2
eCFR. 20 CFR 655.731 – What Is the First LCA Requirement, Regarding Wages
3
U.S. Department of Labor. Prevailing Wage Information and Resources
4
U.S. Department of Labor. Prevailing Wage Determination Policy Guidance
5
Foreign Labor Application Gateway. Foreign Labor Application Gateway
6
eCFR. 20 CFR 656.40 – Determination of Prevailing Wage for Labor Certification Purposes
7
eCFR. 20 CFR 656.41 – Review of Prevailing Wage Determinations