On December 23, 2025, the Department of Homeland Security (DHS) announced a major change to how H-1B cap registrations will be selected in future years. Instead of using a fully random lottery, USCIS will begin using a weighted selection system that gives higher chances of selection to higher-paid positions.
This change will apply starting with the FY 2027 H-1B cap registration season, which is expected to take place in March 2026. The final rule becomes effective on February 27, 2026.
For employers and foreign professionals who rely on the H-1B program, this update could change filing strategy, workforce planning, and hiring decisions.
What Is the “Weighted” H-1B Selection System?
For more than a decade, the H-1B program has been heavily oversubscribed. Each year, far more registrations are submitted than the number of available H-1B visas. Because of this, USCIS has relied on a computer-generated lottery where each registration had essentially the same chance of being selected (within the master’s cap or regular cap).
Under the new rule, USCIS will still use a lottery format—but the lottery will no longer treat every registration equally. Instead, USCIS will assign more “entries” to higher-paid H-1B registrations, increasing the probability that those registrations are selected.
How the Wage-Based Weighting Works (Wage Levels I–IV)
The regulation ties selection weight to the Department of Labor’s wage level system, which groups jobs into four categories (Level I through Level IV). Under the new rule, a registration may receive:
- Level I – 1 entry
- Level II – 2 entries
- Level III – 3 entries
- Level IV – 4 entries
This means a Level IV wage registration may have significantly higher odds of selection than a Level I wage registration.
The purpose of DHS’s approach is to discourage filings for lower-paid roles and encourage employers to petition for more specialized, higher-compensated positions.
What Employers Must Provide During the Registration
Because wage level now impacts selection chances, employers will need to report key information more carefully at the registration stage, including:
- Wage level (Level I–IV)
- The correct occupational classification code
- Worksite location where the employee will be working
USCIS will use these details to assign the weighted number of entries in the selection process.
USCIS Will Verify the Accuracy of Registration Information
This rule also adds more risk for employers who submit incorrect wage levels or position details.
After a registration is selected, USCIS will review whether:
- The wage level matches the role being offered
- The job code aligns with the duties listed in the petition
- The location information matches the petition filing
- The offer is a legitimate job opportunity
- Any amended filing does not appear to be an attempt to manipulate selection odds
This means employers should treat the registration step as a serious compliance stage—not a simple placeholder.
How This May Affect Entry-Level Hiring and Smaller Employers
One major concern is that this new system could make it harder to obtain H-1B approvals for entry-level jobs, particularly for:
- Recent graduates
- New hires placed into Level I wage categories
- Smaller employers and startups that cannot offer higher wage levels
- Employers that depend heavily on early-career talent pipelines
Industries such as healthcare, technology, biotech, finance, consulting, and education may feel this impact quickly, as they often rely on young professionals entering the workforce.
What Happens Next: Possible Litigation and Registration Disruptions
As with many large immigration changes, this rule could face legal challenges. There is also a possibility that USCIS may adjust or temporarily suspend parts of the electronic registration process if technical or operational issues arise.
Employers should also plan for potential delays if government shutdown issues affect related steps such as Labor Condition Applications (LCAs).
What Employers Should Do Now
Employers planning to register candidates in March 2026 should begin preparing early. This includes:
- Reviewing wage levels and job descriptions
- Confirming the correct occupational codes
- Planning for wage competitiveness under the new selection system
- Identifying alternative visa options if selection becomes less likely
Early planning will give employers a stronger position going into the FY 2027 cap season.
FAQ
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 annual quota remains the same, including the regular cap and the advanced degree cap.
Will Level I wage filings still be selected?
Yes. They remain eligible, but they may have reduced selection chances compared to higher wage filings.
What is the biggest risk under this new system?
Employers must ensure wage level, job classification, and location details are accurate at the registration stage because USCIS will verify those details later.
Can NPZ help employers prepare for the new system?
Yes. NPZ Law Group advises employers and foreign professionals on H-1B strategy, wage planning, compliance, and alternative visa options.
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.