Prevailing Wage Determinations Explained for Employers

A prevailing wage determination (PWD) is the Department of Labor’s official answer to a simple question: what’s the going rate for this job, in this location, at this skill level? It’s the foundation of PERM and many work visas because the employer must pay at least this wage. Get it wrong and everything downstream is at risk.

What the PWD is

The PWD is a wage floor set by the DOL for a specific occupation, location, and level of experience. For PERM, the offered salary must meet or exceed it. It isn’t negotiable. It reflects what comparable workers in that area earn.

How the DOL sets it

The DOL classifies the role by occupation code and assigns a wage level (typically I through IV) based on the requirements, supervision, and complexity of the job. It then applies survey data, usually its own wage data, to produce the figure.

Why it gates everything

Recruitment can’t meaningfully begin until you know the wage, because the wage shapes the role and the offer. For PERM, the PWD must be valid when you file. For visas like H-1B, the wage attestation depends on it too.

Common pitfalls

Misclassifying the wage level, letting the determination expire, or writing job requirements that push the role into a higher and pricier level than intended. The PWD deserves attention early, not as an afterthought.

If you’re weighing your options, a consultation with Capitol Law Partners can map the right path for your situation. Schedule a consultation.

This article is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by this communication.

Attorney Cagatay Ersoy. Practical strategy for founders, investors, and growing companies.