One of the key things that is important for H1B Visa approval and compliance is to have proper wage paid to the H1B worker. The minimum wage or salary for H1B workers is defined and set by concept of ‘Wage Levels’. The wage levels for a job depends on some factors like experience, area, SOC Code, and location.
In this article, we review all the details of Wage Levels, how they are determined, and importance of the same in H1B LCA for approval from USCIS.
Why minimum wage required for H1B LCA?
The reason for having H1B wage levels and setting a minimum wage for H1B workers is to make sure H1B workers are paid on par with US workers and not exploited by employers as cheap labor. Also, they are required to provide similar working conditions like US workers.
To meet these requirements, H1B employers submit wage level, location, job title, and other information for compliance as part of the Labor Condition Application ( LCA ) that is submitted to US Dept of Labor.
Background of Wage Levels
The concept of Wage levels was first introduced in October 1997, where they introduced two skill levels, Level I for beginning level employees and Level II for fully competent employees. While, this worked well for sometime, there were many issues on determining the wage for management roles and advanced judgment based skills. The concept of Four wage levels was introduced in 2004 under the “H1B Visa Reform Act of 2004”. That’s how the prevailing wage levels came into existence.
Now that you know the background, let’s look at the details
What are H1B Wage Levels by US Dept of Labor ?
H1B Wage Levels are defined by the US Department of Labor (DOL). It is based on the prevailing wages data collected under Occupational Employment Statistics(OES) Program by them based on a location, job title, experience, and few other criteria.
The H1B wage levels are set so that H1B workers are paid the prevailing wage that are based on education, experience and location, similar to US workers. The wage levels are filled as part of the H1B LCA as part of the Labor Condition Application Process.
There are 4 H1B Wage levels that are defined by DOL based on OES program. Each wage level is defined as percentile. Percentile is not Percentage. Check Percentile Wikipedia to know more. Below are the H1B wage levels definitions and percentiles.
- H1B Wage Level 1 – Entry : This wage level is for entry level H1B workers with basic understanding of job. This wage level corresponds to 17th Percentile.
- H1B Wage Level 2 – Qualified: This wage level is for qualified workers with education, experience and who can perform moderate tasks with limited judgment. This wage level corresponds to 34th percentile
- H1B Wage Level 3 – Experienced : This wage level is for experienced workers who have deeper experience that is attained with education and experience. This level work requires judgment and may also manage people. This wage level corresponds to 50th percentile
- H1B Wage Level 4 – Fully Competent: This wage level the most expert level of workers, who can do complex tasks and can exercise a lot of judgment in their activities. It may include management responsibilities too. This wage level corresponds to 67th percentile.
If we have to summarize in a simple table, it looks like blow.
|Prevailing Wage Level||H1B LCA Wage Percentile|
|Wage Level I||17th percentile|
|Wage Level II||34th percentile|
|Wage Level III||50th percentile|
|Wage Level IV||67th percentile|
Changes to Wage Levels Proposed & Cancelled by Court : In October 2020, there was an Interim Final Rule published by DOL to change the H1B, PERM prevailing wage levels to 45th, 62nd, 78th, and 95th percentile for Wage Level 1 to Wage Level 4. Later in December 2020, two courts issued order to cancel the changes to wage levels as DOL did not follow proper notice and comment period. Eventually, DOL issued announcement cancelling the H1B, PERM Wage Levels Changes.
Determining Prevailing Wage Levels
Department of Labor (DOL) has official guidance on how the prevailing wage levels are set and what data is used for the same. Read Prevailing Wage Determination Policy Guidance for complete information on the process of setting the wage levels and other key information that is relevant for minimum wage.
Prevailing Wage Requirement – H1B Visa Petition, LCA
It is H1B employer’s responsibility and wage requirement to make sure the H1B worker is paid on par with the prevailing wage or minimum wage defined for the H1B job position similar to a US worker working in similar job. H1B workers cannot be working below the minimum wage for the position offered in that area. It is based on various factors related to the job position offered like experience, geographic location and education.
The minimum wage related information for various job positions are available at Foreign Labor Certification Data Center website. It is the online wage library for H1B workers to know the minimum wage for a position. The FLCDataCenter website is the official source of prevailing wage information and by the State of Utah under contract with the US Department of Labor, Office of Foreign Labor Certification.
H1B Lottery to be based on H1B Wage Levels ?
On January 8th, 2021, DHS published a final rule in Federal Regiser that changes the H1B Visa Lottery Selection process from random selection to be based on H1B Wage Levels. What it means is that, USCIS will use the H1B wage level submitted by the employer for lottery selection. They will first select the wage level 4, followed by wage level 3, then wage level 2 and finally wage level 1. For detailed info, read H1B Lottery to be based on Wage Levels article.
Due to extreme demand, it is predicted that about 163,000 H1B filings that are filed as Level 1 and Level 2 may not be picked as there is extreme demand for H1B visa. You can check H1B Visa Lottery Cap Filings History to get an idea. We do not know yet, if this will be final for H1B FY 2022 season, we are waiting for USCIS update on this.
Now that you know the basics of minimum wage requirements, current news, let’s look at how to find out the prevailing wage for a position.
We will look at two options to check Prevailing Wage Levels for H1B LCAs, one is at FLCDataCenter.com website and other is at H1BGrader.com website that uses the same official FLCDatacenter.com website data. H1BGrader website has better UI and you can even check history as well.
Check H1B Prevailing Wage Levels for a Job, Location, History
Below is step by step guide to find the H1B prevailing wage for a position in an area.
Step 1 : Navigate to H1BGrader.com Prevailing Wage Search Page
Step 2 : Enter the Job Title SOC Code and Area Name. You can start typing and you will get suggestions. Select them like below and hit on Search button.
Step 3 : You will see the search results of the H1B Prevailing Wage Levels with base salary that has to be paid to H1B worker for a particular wage level in that area. It looks like below.
You can even check history of prevailing wages for H1B based on wage levels for the last 5 years. For that you need to go to History of H1B Prevailing Wages and follow the same steps as above. It looks like below.
Now, let’s look at how you can check the prevailing wage on the official FLCDataCenter website. The UI is not the best.
Find H1B Wage Levels using FLCDataCenter
Below is the step by step guide to find the minimum wage (prevailing wage) for a H1B job position using FLCDatacenter.com website.
Step 1 : Navigate to website Foreign Labor Certification Data Center and select the search wizard from menu on the left. See below screenshot. You can also select Quick Search, if you want to directly go to search. The wizard lets you select state and let you go step by step.
Step 2 : Select the options for the Source of the Database for Prevailing wage. If you are not sure, just select all industries. You will need to select the Area where you will plan to work or your job location and then last option is to select the job title of the position. You can also chose to use the keyword option to enter, if you cannot find the job title. See below.
Step 3 : Once you select above options and hit search, you will get wage information like below. It will list all the wage levels and the minim wage for that wage level. One of the key things you need to ask your employer or know is the wage level that is being field for your position. It is critical for your H1B position and approval with DOL and USCIS. Also, you need to ask the Standard Occupation Classification (SOC) code that they plan to use for the position. You will be able to see that info as well.
How to find your current Wage Level from H1B LCA ?
You can find your current H1B Wage Level by looking at your H1B Labor Condition Application(LCA). It has all the information related to your H1B position. You can ask your employer to share the copy of LCA. In fact, they are supposed to share you a copy of your LCA.
To see the wage level info, you need to look at Section G, which tell the information of the Wage Level, Wage offered in that area and the Wage database year. See below screenshot.
If you know the LCA number, you can search for your LCA online on websites like H1BGrader.com LCA Search, to view the LCA details. They get the data from US Dept of Labor H1B LCA disclosure page. You can also go to the DOL Performance Data Disclosure Page and download the excels and search for your case number. The problem is the files are in hundreds of megabytes and not consumable.
It is important to have the right wage level selected as cases with Computer Programmer Level 1 wage are not considered speciality occupation and do not qualify for H1B Visa as per the New Policy Memorandum in April 2017
Yes, H1B Wage Levels prevailing wages were reverted back to previous levels in December 2020 based on Court order. DOL published a rule to change them in October 2020, but was canclled by courts.
USCIS would look at the H1B application as a whole and as part of that they would ensure that H1B worker is paid as per the prevailing wage. If there is any discrepancy, USCIS can report the wage violation for the employer to DOL or ask the employer why not paid on par with others.
Your employer is mandated to pay as per the wages and salary listed on the LCA. If they are not paying so, you can raise a complaint with Department of Labor by filling out WH4 Form. First thing to do is to raise it with employer and ask them to pay back wages or pay as per LCA. If they do not say so, then you can raise a request with WH4 form on DOL website
Yes, it can. The prevailing wage is based on wage surveys conducted by OES and it is published every year. When they publish the wage data, you need to watch closely for changes. You can check H1B Prevailing Wages History to find the history of H1B wage data that is curated by H1Bgrader. You always need to use the most recent Prevailing wage as they mention on the FLCDataCenter website when you file new LCA.
Did we miss anything ? Your thoughts ?