H-1B Lottery Changes for FY 2027 (March 2026 Registration): What Employers Need to Know

The H-1B cap registration process continues to evolve, and employers planning ahead for the FY 2027 H-1B cap season should be aware of important upcoming changes. While the H-1B program has always been competitive, recent regulatory developments signal a shift toward a more strategy-driven and compliance-focused registration process.

For employers that rely on foreign national talent—and for professionals planning to remain in the United States long term—understanding these changes well before the March 2026 registration period is critical.

Why the FY 2027 H-1B Cap Season Matters

In recent years, USCIS has taken steps to increase integrity and transparency in the H-1B selection process. After moving to a beneficiary-centric system, DHS has now announced plans to introduce a weighted H-1B cap selection system, expected to apply beginning with the FY 2027 cap season.

While USCIS is still expected to use a lottery format, registrations may no longer be treated equally. Instead, wage level, job details, and worksite information may play a larger role in selection outcomes.

This change may have a meaningful impact on:

  • Employers hiring early-career professionals
  • Employers sponsoring recent graduates
  • Organizations with lower wage structures or multiple worksites

How Wage Levels May Influence Selection

Under the anticipated weighted selection framework, registrations tied to higher prevailing wage levels may receive greater selection weight. Wage levels are determined by several factors, including:

  • Job duties and requirements
  • Occupational classification
  • Geographic location of the worksite
  • Salary offered

As a result, employers should not view H-1B registration as a last-minute task. Careful review of wage levels and job structure before registration opens is now more important than ever.

Why Job Location Accuracy Is Critical

Prevailing wages vary significantly by geographic location. The same position and salary may fall into different wage levels depending on where the employee will work.

Because USCIS may review whether registration details align with the later-filed petition, employers should:

  • Confirm the intended worksite at the outset
  • Avoid placeholder or speculative locations
  • Ensure consistency across registration, LCA, and petition filings

Inconsistencies may result in increased scrutiny or delays.

The $100,000 Presidential Proclamation Fee: A Separate Consideration

Employers should also be aware of a Presidential Proclamation that may affect certain newly filed H-1B cases.

Under this rule:

  • Certain H-1B cases processed outside the United States may be subject to a $100,000 government fee
  • The rule generally does not apply to approved change-of-status cases inside the U.S.
  • Applicability depends on individual facts and circumstances

Because policy developments and litigation are ongoing, employers should evaluate this issue carefully before proceeding with international travel or consular processing.

Planning Ahead for the March 2026 Registration

The evolving H-1B landscape reinforces the importance of early planning. Employers should consider:

  • Reviewing job descriptions and wage levels now
  • Identifying which employees require sponsorship
  • Evaluating alternative visa options if selection becomes less likely
  • Coordinating closely with immigration counsel well before registration opens

Foreign nationals on F-1 OPT or STEM OPT should also plan ahead to avoid gaps in work authorization.

FAQ

When will the new H-1B selection changes take effect?
The weighted H-1B selection system is expected to apply beginning with the FY 2027 cap season, with registration anticipated in March 2026.

Does this mean the H-1B lottery is eliminated?
No. USCIS is expected to continue using a lottery system, but registrations may receive different selection weight based on wage level.

Are entry-level positions still eligible?
Yes. Entry-level positions remain eligible, though they may face lower selection odds compared to higher-wage roles.

Why is worksite information so important now?
Wage levels vary by geographic location. Accurate worksite information helps ensure the correct wage level is applied at registration.

Does this affect current H-1B employees?
No. These changes primarily impact new cap-subject H-1B registrations and do not affect existing H-1B approvals or extensions.

Are there alternatives if an employee is not selected?
Depending on qualifications and nationality, alternatives may include L-1, O-1, TN, E-3, or E-2 visas.

Key Takeaway

The H-1B registration process is becoming more strategic and detail-driven. For the FY 2027 cap season, early planning, accurate job details, and thoughtful wage analysis can help employers reduce risk and improve outcomes.

Employers and foreign nationals are encouraged to consult with experienced immigration counsel to develop a compliant and forward-looking H-1B strategy.

Contact Information
If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information.