What's Happening?
The U.S. Citizenship and Immigration Services (USCIS) has announced changes to the H-1B cap lottery system for the fiscal year 2027 registration season. The new system, effective February 27, 2026, introduces a weighted, wage-level-based selection process. This change prioritizes higher-skilled and higher-paid foreign workers by giving those with higher offered wages a better chance of selection. The registration period will run from March 4 to March 19, 2026. Employers must electronically register each beneficiary and pay a $215 fee per registrant. The selection process will now consider the wage level offered to the beneficiary, with higher wage levels receiving more entries into the selection pool. This system aims to align with the Department
of Labor’s Occupational Employment and Wage Statistics database, which categorizes wages into four levels based on occupation and location.
Why It's Important?
This change in the H-1B selection process is significant as it shifts the focus towards attracting higher-paid foreign workers, potentially impacting the U.S. labor market. By prioritizing higher wage levels, the new system may reduce opportunities for entry-level professionals and those with lower salaries. This could lead to a more competitive environment for employers seeking to hire foreign talent, as they may need to offer higher wages to increase their chances of selection. The policy could also influence the types of jobs and industries that benefit from H-1B visas, potentially favoring sectors that can afford to pay higher wages. Additionally, the introduction of a $100,000 fee for new H-1B petitions could further impact employers' hiring strategies.
What's Next?
Employers are advised to prepare for the upcoming H-1B registration period by strategizing early. This includes confirming job titles, SOC Codes, and places of employment for potential candidates to assess their chances in the lottery. Employers should also be aware of the ongoing litigation challenging the new $100,000 H-1B fee, which applies to new petitions requesting consular or port-of-entry notification. As the changes take effect, stakeholders will likely monitor the impact on the labor market and the availability of foreign talent in the U.S.
