What Are H-1B Wage Levels?
The four H-1B wage levels correspond to different tiers of occupational skill and experience. Level 1 represents entry-level positions requiring basic understanding and limited judgment. Level 2 covers positions requiring slightly more independent judgment and working knowledge. Level 3 applies to experienced workers who operate independently. Level 4 represents fully competent workers who may supervise others or possess specialized expertise.
The Department of Labor defines these levels in conjunction with the wage data it publishes. Each level corresponds to a wage percentile: Level 1 is typically the 17th percentile, Level 2 the 34th percentile, Level 3 the 50th percentile, and Level 4 the 67th percentile.
Employers cannot simply choose the lowest wage level to minimize costs. The selected level must accurately reflect the job duties, required experience, and complexity of the position being offered.
How Is the Correct Wage Level Determined?
The correct wage level depends on the specific job duties, not just the job title. A software developer position could be Level 1 if it requires only basic skills with significant supervision, or Level 4 if it involves complex architecture decisions and team leadership.
According to DOL guidance, the level should reflect the actual complexity and requirements of the position. Using a lower level than the job duties warrant violates wage requirements and can result in enforcement action.
Review the position description carefully and compare it against the DOL's level descriptions. When duties span multiple levels, the position should generally be classified at the level covering the most complex regular duties.
What Are SOC Codes and How Are They Used?
SOC codes are six-digit numbers from the Standard Occupational Classification system maintained by the Bureau of Labor Statistics. These codes categorize all occupations into a unified framework used across federal agencies.
For H-1B purposes, the SOC code determines which occupational category applies to your position. Different occupations have different prevailing wages, even in the same geographic area. A computer programmer (15-1251) has different wage requirements than a software developer (15-1252).
The DOL's Foreign Labor Certification Data Center publishes prevailing wage data organized by SOC code and metropolitan statistical area. Employers use this data to determine the minimum wage they must offer.
How Do You Find the Correct SOC Code?
Finding the correct SOC code requires matching your job duties to the official occupation descriptions. The O*NET database provides detailed descriptions of each occupation including typical tasks, required knowledge, and necessary skills.
Start with the job description and identify the primary duties. Compare those duties against occupation descriptions to find the best match. When duties could fit multiple codes, select the code that most accurately represents the core functions of the position.
Using an incorrect SOC code can result in using the wrong prevailing wage data, which may lead to wage violations or USCIS scrutiny of the petition.
How Do Wage Levels and SOC Codes Work Together?
The SOC code identifies the occupation, and the wage level identifies the complexity tier within that occupation. Together, they produce the specific prevailing wage that applies to the position.
For example, a Level 2 software developer in San Francisco has a different prevailing wage than a Level 2 software developer in Houston, and both differ from a Level 3 software developer in either location. The combination of code, level, and location produces the applicable wage.
The Labor Condition Application filed by employers must specify the SOC code, wage level, and offered wage. USCIS and DOL use this information to verify compliance.
What Happens If the Wrong Combination Is Used?
Using an incorrect SOC code or wage level creates compliance problems. If the error results in paying less than the actual prevailing wage, the employer owes back wages to the worker and may face penalties from the Department of Labor.
Intentional misclassification to reduce wage obligations can result in debarment from the H-1B program. Even unintentional errors can trigger audits and require corrective action.
USCIS may also question mismatches between the stated wage level and the job requirements. A Level 1 classification for a position requiring years of experience may prompt a Request for Evidence asking how entry-level wages match senior job requirements.
Why Do Level 1 Wages Receive Extra Scrutiny?
Level 1 positions have received increased USCIS scrutiny in recent years. The concern is that some employers misuse Level 1 to minimize costs for positions that actually require more advanced skills.
A legitimate Level 1 position requires minimal experience and significant supervision. If the job posting or petition describes complex duties, independent work, or specialized skills, Level 1 classification appears inconsistent and raises red flags.
According to USCIS policy guidance, adjudicators examine whether the wage level corresponds to the job duties described. Employers should be prepared to explain why Level 1 is appropriate if that level is selected.
When Is Level 1 Appropriate?
Level 1 is appropriate for genuinely entry-level positions. A recent graduate performing basic programming tasks under close supervision would fit Level 1. A position requiring several years of specialized experience would not.
The position should require only basic understanding of the occupation, close supervision by senior employees, and limited judgment in applying established procedures. If the actual duties exceed this description, a higher level is warranted.
Document why Level 1 was selected if you choose it. This documentation can support the petition if USCIS questions the classification.
What Role Does Geographic Location Play?
Prevailing wages vary significantly by geographic location. Major metropolitan areas with high costs of living have higher prevailing wages than smaller markets. The same occupation at the same level can have wage differences of tens of thousands of dollars depending on location.
The OFLC Prevailing Wage Search tool allows lookup by metropolitan statistical area or non-metropolitan area. The work location on the LCA must accurately reflect where the H-1B worker will primarily perform duties.
Remote work arrangements have complicated this analysis. If a worker can work from anywhere, the location question becomes less straightforward. Recent guidance suggests using the location where the employer has a legitimate business presence and where work is directed.
What If the Work Location Changes?
If the H-1B worker's primary work location changes to a different wage area, the employer may need to file a new LCA and potentially amend the H-1B petition. Moving from a lower-wage area to a higher-wage area triggers new prevailing wage obligations.
Short-term travel or temporary assignments may not require new filings depending on duration and circumstances. Extended relocations generally do require updated documentation.
Employers should establish clear policies about remote work and location changes for H-1B workers to ensure ongoing compliance.
