9 January 2026
On December 23, 2025, the U.S. Department of Homeland Security (DHS) announced a significant shift in how H-1B cap registrations will be selected in future years. Beginning with the FY 2027 H-1B cap season, U.S. Citizenship and Immigration Services (USCIS) will move away from a purely random lottery system and instead implement a wage-weighted selection process.
This new rule is scheduled to take effect on February 27, 2026, and is expected to apply to the H-1B registration period opening in March 2026.
For employers, HR teams, and foreign professionals who rely on the H-1B program, this change may substantially affect hiring strategies, wage planning, and compliance obligations. At VKM Law Group, we are already advising clients to prepare for a very different cap season ahead.
What Is the Weighted H-1B Cap Selection System?
For years, the H-1B program has been oversubscribed, with far more registrations submitted than the 85,000 visas available each fiscal year. To manage demand, USCIS has relied on a computer-generated lottery, where registrations generally had equal chances of selection within the regular cap and the advanced degree cap.
Under the new rule, USCIS will retain a lottery-based system, but registrations will no longer be treated equally. Instead, the agency will assign greater selection weight to higher-paid positions, increasing their probability of being chosen.
In practice, this means that wage level, not just luck, will now play a critical role in H-1B selection outcomes.
How Wage-Based Weighting Works (DOL Wage Levels I–IV)
The weighted system is tied to the U.S. Department of Labor’s prevailing wage structure, which categorizes positions into four wage levels based on experience, complexity, and responsibility.
Under the new framework, USCIS may assign:
- Wage Level I – 1 entry
- Wage Level II – 2 entries
- Wage Level III – 3 entries
- Wage Level IV – 4 entries
A registration filed at Wage Level IV could therefore receive up to four times the selection weight of a Level I registration.
DHS has stated that the goal of this approach is to discourage filings for lower-paid or less specialized roles and to prioritize higher-skilled, higher-compensated positions.
Registration Accuracy Is Now More Important Than Ever
Because wage level directly affects selection odds, USCIS is placing far greater emphasis on the accuracy of information submitted at the registration stage.
Employers will be required to carefully report:
- The correct wage level (I–IV)
- The appropriate occupational classification (SOC code)
- The worksite location where the employee will perform services
USCIS will rely on this information to determine how much weight a registration receives in the lottery.
Increased Scrutiny After Selection
Under the new rule, USCIS will closely review selected registrations to confirm that the information provided during registration was accurate and not misleading.
During petition adjudication, USCIS may examine whether:
- The wage level aligns with the job duties
- The occupational code matches the position described
- The worksite location is consistent
- The job offer is bona fide
- Any changes appear designed to manipulate selection odds
This means the registration process is no longer a low-risk, preliminary step. Errors or inconsistencies could lead to denials, revocations, or fraud findings.
Impact on Entry-Level Hiring and Smaller Employers
One of the most significant concerns surrounding the weighted system is its potential impact on:
- Recent graduates
- Entry-level professionals classified under Wage Level I
- Startups and small businesses with limited salary flexibility
- Employers that rely on early-career talent pipelines
Industries such as technology, healthcare, biotech, finance, consulting, and education, which often hire junior professionals, may experience reduced selection rates under this model.
At VKM Law Group, we expect this change to reshape workforce planning decisions, particularly for employers sponsoring large numbers of first-time H-1B candidates.
What Comes Next: Legal Challenges and Operational Risks
As with many major immigration policy changes, the weighted selection rule may face legal challenges. There is also the possibility of technical disruptions to the electronic registration system as USCIS implements the new framework.
Additionally, external factors such as government shutdowns could affect related processes, including Labor Condition Application (LCA) processing times.
Employers should plan conservatively and build flexibility into their immigration strategies.
What Employers Should Do Now
With the March 2026 registration period approaching, proactive preparation is essential. Employers should consider:
- Reviewing job descriptions and wage levels now
- Confirming accurate SOC code classifications
- Assessing wage competitiveness under the new system
- Identifying alternative visa options if H-1B selection becomes less likely
- Coordinating closely with experienced immigration counsel
Early planning can significantly improve outcomes and reduce compliance risks.
Frequently Asked Questions
When does the weighted H-1B selection rule take effect?
The rule becomes effective on February 27, 2026, and is expected to apply to the FY 2027 cap registration season.
Does this change the annual H-1B cap numbers?
No. The statutory cap remains unchanged, including both the regular cap and the advanced degree exemption.
Are Wage Level I filings still eligible?
Yes. Wage Level I registrations remain eligible but may have lower selection odds compared to higher wage levels.
What is the biggest compliance risk under the new system?
Providing inaccurate wage levels, job classifications, or worksite information during registration, which USCIS will later verify.
Can VKM Law Group help employers prepare for the new system?
Yes. VKM Law Group advises employers and foreign professionals on H-1B strategy, wage planning, compliance, and alternative visa options tailored to today’s evolving immigration landscape.