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. The new system, effective February 27, 2026, introduces a weighted, wage-level-based selection process. This change aims to prioritize higher-skilled and higher-paid foreign workers by giving those with higher offered wages a better chance of selection. The registration period for the FY 2027 H-1B cap lottery will run from March 4, 2026, to March 19, 2026. Employers must electronically register each beneficiary and pay a $215 registration fee. 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 replaces
the previous random selection process, potentially reducing the chances for entry-level professionals.
Why It's Important?
The implementation of a wage-level-based selection process for H-1B visas marks a significant shift in U.S. immigration policy. By prioritizing higher wages, the system aims to attract more skilled workers, potentially benefiting industries that rely on specialized talent. However, this change could disadvantage entry-level professionals and smaller companies that may not offer competitive salaries. The new system may also lead to increased administrative burdens for employers, who must now provide detailed wage information during registration. This policy shift reflects broader efforts to align immigration practices with economic needs, potentially impacting the U.S. labor market and the global talent pool.
What's Next?
Employers are advised to prepare for the upcoming H-1B registration period by strategizing early and confirming job titles, SOC Codes, and employment locations for potential candidates. The new system requires employers to submit additional information, including the prevailing wage level, during registration. Employers should also be aware of a new $100,000 H-1B fee for certain petitions, which is currently under litigation. As the policy takes effect, stakeholders will likely monitor its impact on the labor market and immigration patterns, with potential adjustments based on feedback and legal challenges.
