How the DOL sets it
The DOL's OFLC derives the prevailing wage from the Bureau of Labor Statistics' Occupational Employment and Wage Statistics (OEWS) survey, broken down by SOC occupation code and by metropolitan/non-metropolitan area.
Each occupation+area has four wage levels (I–IV) that correspond to experience and complexity, currently mapped to roughly the 17th, 34th, 50th, and 67th percentiles of the local wage distribution.
Why it matters to you
The wage your employer must pay is the higher of (a) the prevailing wage for your role and area at your level, and (b) what the employer actually pays similar workers. Paying below that violates the LCA and the back wages are recoverable.
Even where there's no legal requirement (for example OPT, L-1, O-1, TN), the prevailing wage is a useful market benchmark: an offer well below it is a negotiating signal.
Frequently asked
- Is the prevailing wage the same as minimum wage?
- No. Minimum wage is a flat legal floor for all jobs; the prevailing wage is occupation- and area-specific and is usually far higher for professional roles.
- Who has to pay the prevailing wage?
- Employers of H-1B, E-3, and H-1B1 workers commit to it on the LCA. PERM green-card cases also use a prevailing-wage determination. OPT/STEM-OPT, L-1, O-1, and TN have no prevailing-wage requirement.