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Department of Labor, Department of State, + Department of Homeland Security Updates

MAY 26, 2026
Munsch Hardt Immigration Insights

The Department of Labor Proposes Overhaul of Prevailing Wage Framework for Specialty Occupation and PERM Programs  – Department of Labor

The U.S. Department of Labor (“DOL”) has proposed new rules that would change how prevailing wages are calculated for several employment-based immigration programs, including the H-1B, H-1B1, E-3, and PERM labor certification programs.

Under the proposal, the DOL would use updated wage data from the Bureau of Labor Statistics to establish higher prevailing wage levels. According to the agency, the goal is to ensure that foreign workers are compensated at rates more consistent with those earned by U.S. workers in comparable positions.

Key provisions of the proposal include:

  1. Revised methodology for determining wage levels based on updated market data
  2. Increased prevailing wage requirements across multiple experience levels, particularly for entry-level positions
  3. Application of new wage calculations to both temporary and permanent employment-based visa programs

If finalized, the rule could significantly increase salary requirements for sponsored positions and raise overall labor costs for employers. The changes may also affect eligibility for H-1B petitions and PERM applications, particularly for entry- and mid-level positions.

June 2026 Visa Bulletin: Significant Retrogression Affects India EB-1 and EB-2 Categories – State Department

The Department of State's June 2026 Visa Bulletin marks a notable reversal for Indian nationals in the employment-based immigration queue, with pronounced retrogressions in both the EB-1 and EB-2 categories driven by sustained high demand for immigrant visas.  While certain categories experienced modest forward movement, the overall trend signals longer processing and waiting times for many employment-based green card applicants.

The Department of State cautions that further retrogressions remain possible before the fiscal year closes on September 30, 2026.

USCIS Memorandum Signals Potential Shift in Adjustment of Status Adjudications – Department of Homeland Security

On May 21, 2026, U.S. Citizenship and Immigration Services (“USCIS”) issued a new policy memorandum emphasizing that Adjustment of Status (“AOS”) is a discretionary benefit—not an entitlement—and should not be viewed as a substitute for immigrant visa processing through a U.S. consulate abroad.

The policy signals increased scrutiny for individuals applying for permanent residence from within the United States. USCIS officers are now directed to weigh all positive and adverse factors when determining whether an applicant merits a favorable exercise of discretion. In some cases, USCIS may determine that applicants should instead complete the immigrant visa process abroad through consular processing. While adjustment of status remains available, the guidance suggests a more restrictive approach to adjudication moving forward.

At this time, very limited information is available regarding how USCIS intends to implement the policy. Questions also remain regarding the legal authority cited in support of such a significant procedural change, and additional government clarification is expected in the coming days and weeks. Legal challenges to the policy may also follow.

Given the uncertainty surrounding the announcement, employers and applicants are likely to have questions regarding the potential impact on pending and future green card applications. At present, the most prudent approach is to continue monitoring developments while awaiting further government guidance before drawing definitive conclusions or making strategic changes. Please continue to monitor Immigration Insights for updates.

Did You Know?

Munsch Hardt’s Immigration Practice Group recently advised a multinational organization on immigration enforcement preparedness, including workforce training and the development of a strategic response protocol.  This engagement highlights the growing need for employers to implement proactive compliance measures and coordinated response strategies in an increasingly complex enforcement environment.