H-1B Prevailing Wage: What It Is, How It Works, and Why It Matters

What Is the Prevailing Wage?

The prevailing wage is the average wage paid to similarly employed workers in a specific occupation in the area of intended employment. Under the H-1B program, employers must pay the higher of:

• The prevailing wage for the occupation in the work location, OR
• The actual wage the employer pays to other workers in the same position

This requirement protects both H-1B workers (ensuring fair compensation) and U.S. workers (preventing wage depression through lower-paid foreign labor).

Where Does Prevailing Wage Data Come From?

The DOL derives prevailing wages from the BLS Occupational Employment and Wage Statistics (OEWS) survey, which surveys approximately 1.1 million establishments semi-annually. The data is organized by:

• SOC Code — Standard Occupational Classification (what the job is)
• Geographic Area — Metropolitan Statistical Area or nonmetropolitan area (where the job is)
• Wage Level — Percentile bands (Level I = 17th, II = 34th, III = 50th, IV = 67th)

The OFLC publishes updated prevailing wage data annually, typically effective July 1. Our database contains 449,440 wage records covering 848 SOC codes across 400+ metro areas.

How Much Do Prevailing Wages Vary?

The geographic variation is enormous. Here are the highest and lowest prevailing wage metros for Software Developers (15-1252):

Highest Prevailing Wages

Lowest Prevailing Wages

The Level IV threshold ranges from $81,910 to $264,513 — a 222% difference for the exact same job classification.

Two Ways to Obtain a Prevailing Wage Determination

1. OFLC Online Wage Library (Faster)

Use the OFLC Online Wage Search at flag.dol.gov to look up wage thresholds by SOC code and geographic area. Results are instant and free. This is what most employers use for LCA filings.

Or use our Wage Level Calculator which uses the same OFLC data.

2. National Prevailing Wage Center (NPWC) Determination (Slower, Binding)

Employers can request a formal prevailing wage determination from the NPWC. This takes 3-6 months but provides an official, binding determination that USCIS accepts. Required for PERM (green card) applications but optional for H-1B LCAs.

Common Prevailing Wage Mistakes

• Wrong geographic area. Using the company HQ location instead of the actual work location
• Outdated data. OFLC updates annually — ensure you're using current-year thresholds
• Wrong SOC code. A broader or narrower code can significantly change the thresholds
• Not documenting. Print/save the wage lookup with the date — you may need it as evidence
• Ignoring the actual wage. Even if the prevailing wage is $80K, if the employer pays $100K to others in the same role, the required wage is $100K