New H-1B Rule
December 30, 2025New H-1B Lottery Rule: The Weighted Selection Process
The U.S. Department of Homeland Security (DHS) has finalized a major change to how H-1B visas are allocated each year. This new rule ends the long-standing random lottery system and replaces it with a wage-based weighted selection process. The rule is set to be effective in early 2026, in time for the Fiscal Year 2027 H-1B cap season.
What’s Changing?
Under the current system, all properly submitted H-1B registrations have the same chance of being picked in the lottery, regardless of the job or salary offered. Under the new rule, registered beneficiaries will be entered into the lottery with “weights” based on the wage offered:
- Level 4 wage (highest) → 4 entries
- Level 3 wage → 3 entries
- Level 2 wage → 2 entries
- Level 1 wage (lowest) → 1 entry
Higher offered wages mean more entries into the lottery, boosting the odds of selection.
How It Works in Practice
When an employer submits an H-1B cap registration, they’ll need to include:
- The job’s wage level based on the Department of Labor’s prevailing wage tiers
- The occupation code
- The location of employment
If the worker is selected in the cap process, the employer must show that the petition matches the wage level used at registration. USCIS can deny or revoke a petition if it finds the wage level was chosen inappropriately or the wage offered later doesn’t match what was stated in the registration.
Why This Matters to Employers
This change could have several practical effects:
- Employers may need to consider offering stronger compensation to improve their candidates’ chances of selection.
- The rule may reduce employers’ ability to hire certain foreign national workers, especially those offered salaries at Wage Level 1, which represents entry-level positions under the Department of Labor’s wage framework.
- Those planning to sponsor H-1B workers should evaluate wage levels well before registration opens.
- Lower-wage positions (Level 1) may have significantly lower odds of being selected because they get only one entry.
When the Rule Takes Effect
The rule will go into effect in late February 2026. This timing aims to make the wage-weighted selection process part of the March 2026 registration season for Fiscal Year 2027. However, it’s possible that lawsuits could delay or change how the rule is applied.
Bottom Line
The U.S. H-1B cap process is shifting from a purely random lottery to a system that gives better odds to higher-paid roles. Employers that regularly hire H-1B workers should be aware of this change and start planning now — from wage strategy to registration compliance — so they aren’t caught off guard when the new system goes live.
If you have questions about how this rule might affect your hiring plans, talk with a qualified immigration attorney who can help you evaluate your options and make smart decisions in the evolving H-1B landscape.