In a major shift to the H-1B employment-based immigration system, the U.S. Department of Homeland Security (DHS) has finalized a rule that fundamentally changes how cap-subject H-1B petitions are selected. Beginning with the Fiscal Year (FY) 2027 cap season, applications will no longer be chosen through a random lottery. Instead, the selection process will be weighted in favor of petitioners offering higher wages and, by implication, more skilled positions, a policy the administration says is designed to protect American workers and better align the visa program with U.S. economic priorities.
From Equal Chance to Weighted Selection
For decades, when the number of H-1B registrations exceeded the annual cap of 85,000 (65,000 regular plus 20,000 advanced degree exemptions), U.S. Citizenship and Immigration Services (USCIS) held a random lottery to determine which registrations could proceed to full petition adjudication. Under the new rule, registrations will still be entered into a selection pool — but not all entries are equal. Instead:
- Registrations tied to jobs at the highest prevailing wage level (Level IV) will receive four entries in the selection pool.
- Those at Level III receive three entries.
- Level II registrations receive two.
- Level I (entry-level) registrations receive one entry.
This wage-based weighting system uses the Department of Labor’s Occupational Employment and Wage Statistics (OEWS) framework, which categorizes wage levels by percentile relative to typical pay for that occupation and location. The change effectively increases the odds of selection for higher-paying jobs and diminishes the likelihood that lower-wage or entry-level positions will be chosen.
Implementation Timeline
The new weighted selection process is set to take effect on February 27, 2026, ahead of the FY 2027 H-1B cap registration period expected in March 2026 for visas beginning on October 1, 2026. Employers preparing petitions for that cycle should be ready to indicate prevailing wage levels at the registration stage and adjust hiring strategies accordingly.
This new rule is another step to further change the H-1B nonimmigrant visa program. It is in line with other key changes the administration has made, such as the Presidential Proclamation that requires employers to pay an additional $100,000 per visa as a condition of eligibility.
In addition to the selection overhaul, the broader immigration policy landscape has included complementary measures, from increased filing fees to proposals affecting Optional Practical Training (OPT).
With the U.S. ending the H-1B lottery for a new weighted system favoring higher wages and skills, employers must strategically align job roles, job classification, wages (using DOL wage levels), and SOC codes, conduct internal pay equity audits, and prepare for heightened scrutiny by auditing descriptions, compensating appropriately, and exploring alternative visas (O-1, L-1, TN) to secure critical talent, ensuring compliance and robust justification for higher-wage positions to maximize selection odds.
