diff -up openssl-1.1.1/crypto/x509/x509_vfy.c.seclevel openssl-1.1.1/crypto/x509/x509_vfy.c
--- openssl-1.1.1/crypto/x509/x509_vfy.c.seclevel	2018-09-11 14:48:22.000000000 +0200
+++ openssl-1.1.1/crypto/x509/x509_vfy.c	2018-10-01 09:52:23.535298908 +0200
@@ -3220,6 +3220,7 @@ static int build_chain(X509_STORE_CTX *c
 }
 
 static const int minbits_table[] = { 80, 112, 128, 192, 256 };
+static const int minbits_digest_table[] = { 80, 80, 128, 192, 256 };
 static const int NUM_AUTH_LEVELS = OSSL_NELEM(minbits_table);
 
 /*
@@ -3264,6 +3265,8 @@ static int check_sig_level(X509_STORE_CT
 
     if (!X509_get_signature_info(cert, NULL, NULL, &secbits, NULL))
         return 0;
-
-    return secbits >= minbits_table[level - 1];
+    /* Allow SHA1 in SECLEVEL 2 in non-FIPS mode */
+    if (FIPS_mode())
+        return secbits >= minbits_table[level - 1];
+    return secbits >= minbits_digest_table[level - 1];
 }
diff -up openssl-1.1.1/doc/man3/SSL_CTX_set_security_level.pod.seclevel openssl-1.1.1/doc/man3/SSL_CTX_set_security_level.pod
--- openssl-1.1.1/doc/man3/SSL_CTX_set_security_level.pod.seclevel	2018-09-11 14:48:22.000000000 +0200
+++ openssl-1.1.1/doc/man3/SSL_CTX_set_security_level.pod	2018-10-01 09:52:23.535298908 +0200
@@ -81,8 +81,10 @@ using MD5 for the MAC is also prohibited
 
 =item B<Level 2>
 
-Security level set to 112 bits of security. As a result RSA, DSA and DH keys
-shorter than 2048 bits and ECC keys shorter than 224 bits are prohibited.
+Security level set to 112 bits of security with the exception of SHA1 allowed
+for signatures.
+As a result RSA, DSA and DH keys shorter than 2048 bits and ECC keys
+shorter than 224 bits are prohibited.
 In addition to the level 1 exclusions any cipher suite using RC4 is also
 prohibited. SSL version 3 is also not allowed. Compression is disabled.
 
diff -up openssl-1.1.1/ssl/ssl_cert.c.seclevel openssl-1.1.1/ssl/ssl_cert.c
--- openssl-1.1.1/ssl/ssl_cert.c.seclevel	2018-09-11 14:48:23.000000000 +0200
+++ openssl-1.1.1/ssl/ssl_cert.c	2018-10-12 15:29:12.673799305 +0200
@@ -951,8 +951,8 @@ static int ssl_security_default_callback
             if (level >= 2 && c->algorithm_enc == SSL_RC4)
                 return 0;
             /* Level 3: forward secure ciphersuites only */
-            if (level >= 3 && (c->min_tls != TLS1_3_VERSION ||
-                               !(c->algorithm_mkey & (SSL_kEDH | SSL_kEECDH))))
+            if (level >= 3 && c->min_tls != TLS1_3_VERSION &&
+                               !(c->algorithm_mkey & (SSL_kEDH | SSL_kEECDH)))
                 return 0;
             break;
         }
@@ -983,6 +983,9 @@ static int ssl_security_default_callback
             return 0;
         break;
     default:
+        /* allow SHA1 in SECLEVEL 2 in non FIPS mode */
+        if (nid == NID_sha1 && minbits == 112 && !FIPS_mode())
+            break;
         if (bits < minbits)
             return 0;
     }
diff -up openssl-1.1.1/test/recipes/25-test_verify.t.seclevel openssl-1.1.1/test/recipes/25-test_verify.t
--- openssl-1.1.1/test/recipes/25-test_verify.t.seclevel	2018-09-11 14:48:24.000000000 +0200
+++ openssl-1.1.1/test/recipes/25-test_verify.t	2018-10-01 09:52:23.535298908 +0200
@@ -342,8 +342,8 @@ ok(verify("ee-pss-sha1-cert", "sslserver
 ok(verify("ee-pss-sha256-cert", "sslserver", ["root-cert"], ["ca-cert"], ),
     "CA with PSS signature using SHA256");
 
-ok(!verify("ee-pss-sha1-cert", "sslserver", ["root-cert"], ["ca-cert"], "-auth_level", "2"),
-    "Reject PSS signature using SHA1 and auth level 2");
+ok(!verify("ee-pss-sha1-cert", "sslserver", ["root-cert"], ["ca-cert"], "-auth_level", "3"),
+    "Reject PSS signature using SHA1 and auth level 3");
 
 ok(verify("ee-pss-sha256-cert", "sslserver", ["root-cert"], ["ca-cert"], "-auth_level", "2"),
     "PSS signature using SHA256 and auth level 2");