The U.S. Department of Homeland Security (DHS) has finalized a major change to how H-1B work visas are awarded, replacing the longstanding random lottery with a wage-based, weighted selection process aimed at prioritizing higher-paid and higher-skilled foreign professionals. The new system is set to take effect on February 27, 2026, in time for the FY 2027 H-1B cap registration season.
This policy shift is part of a broader effort to “better protect American workers” by incentivizing petitions that offer competitive wages and requiring greater transparency from employers.
In this article, we break down the change, explain how the new system works, and highlight practical steps immigration attorneys and employers should take now.
Why DHS Changed the H-1B Visa Selection Process
Under the traditional approach, H-1B registrations were entered into a purely random lottery when the number of registrations exceeded the statutory cap of 85,000 (65,000 regular + 20,000 advanced degree). Critics argued that this method did not reflect wage levels, skill hierarchies, or policy goals related to U.S. labor protections.
The new rule replaces this with a wage-based weighted selection process that:
- Prioritizes registrations tied to higher wage levels, reflecting stronger positions in the U.S. labor market.
- Encourages employers to offer competitive salaries to skilled workers.
- Aims to protect U.S. workers from wage depression and unfair competition.
DHS states that this approach “better serves Congress’ intent for the H-1B program and strengthens America’s competitiveness,” particularly by aligning visa allocations with roles that support wage growth and job quality.
Is the H-1B Lottery Ending or Just Changing?
The short answer: the old random lottery is being replaced, not removed entirely.
For years, H-1B registrations were selected through a random draw whenever applications exceeded the annual cap. Starting with the FY 2027 cap season, DHS is moving away from pure chance. Instead of picking registrations at random, the government will use a wage-based system that gives better odds to roles offering higher wages.
In plain terms, this means:
- Selection won’t be completely random anymore
- Wage level will directly affect the chances of being selected
- All registrations can still be entered, but they won’t all have the same odds
So while people may still refer to it as a “lottery,” the process behind it has changed in a meaningful way. Luck matters less than before, and how a job is classified and paid now plays a much bigger role.
How the New H-1B Weighted Selection Works
Under the weighted selection system
- Each H-1B registration is assigned a wage level based on Occupational Employment and Wage Statistics (OEWS).
- Registrations with higher wage levels receive multiple entries into the selection pool
| Wage Level | Lottery Entries |
| Level IV | 4x |
| Level III | 3x |
| Level II | 2x |
| Level I | 1x |
This means that petitions offering higher wages (e.g., Level IV) have proportionally better odds of selection than those at lower wage levels.
The system still allows participation from all wage levels, but it weights the odds in favor of employers who offer wages more likely to attract highly skilled workers and align with U.S. wage standards.
Employers will be required to provide additional data (such as SOC code, worksite location, and offered wage level) during registration, and USCIS will later verify consistency between registration data and the subsequent petition.
Intended Policy Goals
DHS and its supporters emphasize several intended benefits.
- Protect American Wages and Jobs
By tying selection odds to wage levels, the new system discourages filling roles at lower wages when similarly qualified U.S. workers are available. This aligns with the broader stated objective of protecting American workers’ wages and employment opportunities. - Incentivize High-Skill, High-Wage Roles
The weighted process rewards employers who propose higher salary offers, reinforcing the original intent of the H-1B program to supplement, not undercut, the U.S. workforce. - Reduce Perceived Lottery Abuse
Some policymakers and advocates criticized the random lottery for enabling abuse through bulk registrations tied to minimal wage levels. The weighted system aims to mitigate this perception by linking selection chances to wage level and job quality.
What This Means for Employers and Attorneys
The H-1B process has long been a cornerstone of U.S. employment-based immigration, especially for technology, engineering, healthcare, and research sectors. These changes are likely to have practical implications:
Review Wage Levels Early
Employers should begin analyzing prevailing wages and job classifications early in the planning process. Because wage level affects lottery odds, accurate classification is more important than ever.
Align Registrations With Job Reality
Data submitted at registration (wage level, SOC code, worksite location) will be validated later when filing the petition. Inconsistencies could lead to RFEs, denials, or integrity concerns.
Strategize for Competitive Odds
Firms may need to counsel clients on balancing competitive salary offers with business constraints to improve selection odds under the weighted system.
Plan Communications With Candidates
Foreign workers and prospective hires should be informed about how the new selection process could impact timeline expectations and job offer negotiations.
Looking Ahead
The weighted selection process is scheduled to become effective on February 27, 2026. It will govern the FY 2027 H-1B cap registration, which typically opens in early March 2026.
While the rule retains opportunities for all wage levels, its practical impact will be felt in how employers prepare registrations and structure job offers. Changes in wage-level strategy, early documentation, and accurate classification will be key for attorneys advising corporate clients or petitioners.
Conclusion
DHS’s shift from a random lottery to a wage-weighted H-1B selection system marks a major change in how cap cases will be evaluated. With wage level, job classification, and data accuracy now influencing selection odds, preparation matters more than ever.
For immigration attorneys and employers, this means tighter workflows, earlier wage analysis, and greater attention to registration details. Small inconsistencies can now have outsized consequences.
As firms adapt, many are strengthening internal processes and using immigration software like Imagility to improve data accuracy, track case readiness, and stay compliant across the H-1B lifecycle. In 2026 and beyond, outcomes will be shaped less by chance and more by how well cases are prepared.
