Update Applicable to:	Effective Date
All Employers	February 27, 2026

What happened?

• On September 24, 2025, the Department of Homeland Security (DHS) proposed a rule to change how H‑1B visas are allocated, replacing the random lottery with a weighted system that prioritizes higher‑paying jobs while maintaining opportunities across all wage levels.

• On December 29, 2025, the United States Citizenship and Immigration Services (USCIS) finalized the rule; it is effective February 27, 2026, and will apply to the Fiscal Year 2027 cap season (registration expected in March 2026).

Overview

Random lottery replaced by wage‑weighted selection using Department of Labor (DOL) Occupational Employment and Wage Statistics (OEWS) levels. Below are the level types and parameters:

Level type:

• Wage Level I: 1 Entry (Entry-level, lowest wage).

• Wage Level II: 2 Entries (Qualified/Standard, second-lowest wage).
  
• Wage Level III: 3 Entries (Experienced/Complex duties, third-lowest wage).
  
• Wage Level IV: 4 Entries (Highly Skilled/Senior, highest wage).

Parameters:

• All tiers remain eligible; priority shifts toward higher‑paid/higher‑skill roles.

• Caps unchanged: 65,000 regular + 20,000 for U.S. advanced degrees.

• Beneficiary‑centric controls continue (one unique beneficiary, regardless of number of registrations).

Why this matters

• Selection odds now depend on wage level—meaning entry‑level roles may face reduced chances.

• Registration details must match the Labor Condition Application (LCA) and the H-1B petition because it may trigger inconsistencies such as:
  • Requests for Evidence (RFEs)
  • Petition denials
  • Fraud investigations

• Planning must start earlier to align Standard Occupational Classification (SOC) code, wage level, duties, and worksite(s).

• A $100,000 fee may apply in certain consular or change‑of‑status‑ineligible cases after selection (monitor litigation and agency guidance).

Action Steps for Compliance

• Audit roles for accurate SOC code and defensible OEWS wage levels; tighten job descriptions.

• Pre‑registration compliance check: confirm SOC code, wage level, worksite(s) and keep documentation to support selections.

• Model selection risk for Level I and Level II roles; consider genuine leveling or location strategies.

• Ensure immigration and compensation teams collaborate so the information in the USCIS registration, the Department of Labor Condition Application, and the USCIS Form I‑129 H‑1B petition all match on
  • job title and duties,
  • Standard Occupational Classification (SOC) code,
  • offered wage/wage level and
  • worksite location

• Assess pay‑equity impacts before raising wages; consult counsel.

• Identify candidates early: Review potential H‑1B candidates across these groups of graduates on:
  • Optional Practical Training (OPT) or STEM OPT
  • Circular Practical Training (CPT)
  • H 4 or L 2 dependent status
  • TN status under the United States-Mexico-Canada Agreement (USMCA)
  • E, H-1B, or L-1B status
  • Candidates outside the U.S. who are cap subject
  • Workers at cap exempt employers who have never been counted in the H 1B cap.

• Calendar deadlines: USCIS registration runs ≥14 days; dates announced ≥30 days in advance; expected early March window.

Additional Information

• Multi‑site & salary ranges: USCIS will use the lowest applicable wage level across listed worksites and the lowest end of the salary range for selection weighting.

• Multiple employers for one beneficiary: Weighting uses the lowest wage level among registrations.

• Location changes: USCIS may allow a post‑registration move to a lower wage‑level location if consistent with the original bona fide offer.

• “Higher‑than‑skill” wages permitted: Paying above typical level for a role does not invalidate weighting.

• Context: In recent seasons, there were approximately 750,000 H‑1B registrations competing for 85,000 available cap numbers, so plan your capacity and consider alternatives.

Source References

• Federal: Department of Homeland Security Proposes Rule on Wage-Based H-1B Selection Process (VensureHR)
• USCIS – H-1B Electronic Registration Process
• USCIS – DHS Changes Process for Awarding H-1B Work Visas to Better Protect American Workers
• Federal Register – Final Rule – 90 FR 60864 – Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions

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