DHS will change the H-1B registration selection (lottery) process
The U.S. Department of Homeland Security (DHS) recently finalized a new rule that will change the H-1B registration selection (lottery) process beginning with the FY 2027 cap season. The rule will take effect on February 27, 2026. According to DHS, the traditional random selection model has been exploited by some employers to hire foreign workers at wages lower than those offered to U.S. workers, and DHS stated that it will therefore implement a new Weighted Selection Process.
DHS explains that the purpose of this change is to incentivize employers to offer higher wages, or to petition for positions that require higher skill levels and higher-skilled beneficiaries consistent with higher wage levels.
Under the prior system, the initial registration stage was completed using relatively limited information, such as employer information and basic beneficiary details including the passport number. Under the new rule, however, USCIS will assign a weight based on which OEWS wage level (Level I–IV) the proffered wage meets or exceeds for the relevant SOC code in the area of intended employment.
Under this process, a registration (or a petition, if registration is suspended) will be categorized by OEWS wage level and entered into the selection pool as follows:
- Wage Level IV (generally, fully competent/highly specialized roles, often with managerial or supervisory responsibilities): entered 4 times
- Wage Level III (generally, experienced roles with substantial independent responsibility): entered 3 times
- Wage Level II (generally, qualified roles requiring mid-level experience and judgment): entered 2 times
- Wage Level I (generally, entry-level roles performed under supervision): entered 1 time
Although each beneficiary is still counted only once for purposes of the annual cap allocation, the different frequency of entry into the selection pool means it is reasonable to expect differences in selection probability by wage level.
DHS indicated that this weighted selection would apply when the number of H-1B registrations exceeds the annual numerical limits, 65,000 regular cap numbers, plus 20,000 for the U.S. master’s (or higher) exemption. In practice, demand in prior years has significantly exceeded the cap, so this weighted selection process is likely to be used in future seasons.
In addition, based on a presidential proclamation announced in September 2025 and subsequent USCIS guidance, certain “new H-1B” cases, particularly those involving visa issuance and entry from outside the United States, may face an additional $100,000 fee requirement. This may affect overall cost planning and strategy for employers.
As a result, H-1B strategy may become more complex than simply “luck in the lottery.” Employers and beneficiaries may need to consider the proffered wage level, the consistency of the position including job duties, worksite location, and SOC code; and overall cost exposure. While many international students and professionals pursue H-1B to continue their careers in the United States, depending on the circumstances it may also be helpful to evaluate other employment-based nonimmigrant options, such as O, L, or E classifications.
If you are interested in all employment non-immigrant visa such as H-1B, O, L and E and immigrant visa, please contact us at mail@songlawfirm.com.
