| Update Applicable to: | Effective Date |
| All Covered Employers | See Details Below |
What happened?
On July 17, 2025, the U.S. Department of Homeland Security (DHS) submitted a proposed rule to the Office of Management and Budget (OMB) titled “Weighted Selection Process for Registrants and Petitioners Seeking to File Cap-Subject H-1B Petitions.”
Overview:
The proposed rule would prioritize H-1B registrations based on criteria such as:
- Wage levels (aligned with Department of Labor standards)
- Educational qualifications
- Other merit-based factors
It builds on the beneficiary-centric selection model introduced in March 2024, which limits multiple entries for the same individual.
If finalized, the rule would significantly change how H-1B visa registrations are selected by replacing the current lottery system with a weighted selection process.
What This Means for Employers
- Hiring Strategy: Employers may need to offer higher wages or restructure job roles to improve selection chances.
- Budget Impact: Increased salary offers could affect budgets for international hiring.
- Compliance: Accurate wage and job classifications will be essential, requiring coordination between HR, legal, and compensation teams.
- Employee Relations: Employers may face pressure to offer promotions or reclassifications to help current H-1B workers remain competitive.
Timeline
- OMB Review: Up to 90 days
- Federal Register Publication: Triggers a 60-day public comment period.
- Final Rule: May take effect 30–60 days after public feedback is reviewed.
Source References
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