The FY 2027 H-1B Lottery: Weighted Selection Based on Wage Level

The FY 2027 H-1B cap season introduces a significant change to how U.S. Citizenship and Immigration Services conducts the annual lottery. In December 2025, the Department of Homeland Security finalized a rule that alters the selection process for H-1B cap registrations. Beginning with the FY 2027 season (conducted in the spring of 2026), USCIS will no longer rely solely on a random lottery. Instead, USCIS will apply a wage-weighted selection system that increases the likelihood of selection for higher-paid positions.  The statutory structure of the H-1B program remains unchanged. Congress continues to limit new H-1B visas to 65,000 per year, with an additional 20,000 visas reserved for individuals who earned a U.S. master’s degree or higher. Cap-exempt employers, including universities and certain nonprofit and research organizations, remain outside the lottery and may continue filing H-1B petitions year-round.

How the Weighted Selection Process Works

Under the new rule, USCIS will no longer treat every registration the same.  Instead, USCIS will assign each registration a number of “entries” in the lottery based on the wage level associated with the offered position. The wage level is determined by comparing the offered salary to the applicable Occupational Employment and Wage Statistics (OEWS) wage levels for the job classification and work location(s). Each beneficiary is still counted only once for cap purposes, even if multiple employers submit registrations on that individual’s behalf. However, the beneficiary’s chances of selection now depend on the wage level assigned to the position:

• Wage Level I receives one lottery entry
• Wage Level II receives two lottery entries
• Wage Level III receives three lottery entries
• Wage Level IV receives four lottery entries

Wage levels generally reflect the seniority and complexity of the role, with Wage Level I corresponding to entry-level positions and Wage Level IV corresponding to the most experienced and, thereby, typically the highest paying roles. As a result, the higher-paid earners receive more lottery entries and therefore have a higher probability of selection. If a position involves multiple worksites, multiple roles, or a salary range, USCIS will use the lowest applicable wage level when assigning lottery weight. This rule is intended to prevent selective reporting of higher wages or locations to unfairly improve selection odds. USCIS will continue to conduct two rounds of selection. The first round allocates the 65,000 regular cap numbers. A second round allocates the 20,000 advanced degree exemption numbers using the same weighted system.

New Information Required at Registration

Unlike prior years, the FY 2027 registration process requires employers to provide substantive job and wage information at the outset in order to determine the applicable wage level. In addition to basic employer and beneficiary information, registrations must now include:

1. The Standard Occupational Classification (SOC) code aligned with the role, which is driven by the actual day-to-day job duties and minimum required qualifications for the position;
2. The physical worksite location(s), which determine the applicable prevailing wage, as wages vary by geographic region;
3. The offered wage the employer intends to pay, which must meet or exceed the applicable prevailing wage level, and determines which wage level is ultimately used for registration purposes.

Critically, the information submitted at registration is no longer preliminary. USCIS will require the H-1B petition and the Labor Condition Application to be consistent with the selected registration. In particular, the following information must remain consistent from registration through petition filing:

• Petitioning employer (legal entity and FEIN)
• Beneficiary identity (name, date of birth, passport information)
• Standard Occupational Classification (SOC) code
• Area or areas of intended employment (worksite locations)
• Offered wage used as the basis for selecting the corresponding OEWS wage level to determine lottery weighting
• Advanced degree exemption eligibility, if claimed

USCIS has made clear that it will closely review inconsistencies and may revoke an H-1B petition or deny a subsequent amended petition if it determines that the initial job details, wages, or locations were changed to unfairly increase selection odds.

The $100,000 Presidential Proclamation Payment

Employers should also be aware of a separate Presidential Proclamation issued on September 19, 2025 that imposes an additional $100,000 payment in certain H-1B cases. This payment is not part of the lottery registration process, but may apply to certain H-1B petitions filed for selected beneficiaries. Specifically, the payment applies where:

1. The beneficiary is physically outside of the United States or is not maintaining a valid nonimmigrant status at the time of filing the petition; or
2. The petition requests consular processing or port-of-entry notification.

If either scenario applies, the payment must be made through pay.gov before filing and proof of payment must be submitted with the petition, or the petition will be denied.

What This Means for Employers

The FY 2027 changes introduce two critical considerations for employers: 1. Wage level now directly affects lottery selection Under the prior system, registration was largely procedural. Employers could submit basic information and finalize wage analysis after selection.  That is no longer the case. Under the FY 2027 system, wage level directly affects selection probability. Employers must now analyze job duties, SOC classification, work location, and compensation before registration opens. The information submitted at registration must be accurate, defensible, and consistent with the eventual petition. 2. The beneficiary’s physical location and immigration status matter Because of the $100,000 Presidential Proclamation payment, the beneficiary’s physical location and status at the time of filing now materially affect the cost of H-1B sponsorship. In practice, the only lottery registrants who would not be subject to the $100,000 payment are beneficiaries who are physically present in the United States in valid nonimmigrant status and who continue to maintain that status through the time the petition is filed, if selected. Employers sponsoring candidates outside the United States should factor this potential cost into FY 2027 H-1B planning.

Frequently Asked Questions Regarding the H-1B Lottery Changes

1. Does the new system guarantee selection for higher-paid positions? No. The rule does not establish a ranking system and does not guarantee selection for any registration. USCIS will continue to conduct a randomized selection. Higher wage levels receive additional entries and therefore higher probability of selection, but selection is not assured at any wage level. 2. Does the advanced degree (master’s cap) exemption still apply? Yes. The advanced degree exemption remains in effect. USCIS will continue to conduct two rounds of selection:

• A first round for the 65,000 regular cap numbers
• A second round for beneficiaries eligible for the 20,000 advanced degree exemption

Both rounds will now be conducted using the weighted selection methodology. 3. May an employer increase a beneficiary’s salary in order to improve selection odds? Potentially, but only where the wage increase is bona fide and consistent with the position and business necessity. The final rule acknowledges that employers may offer higher wages to reflect the value of a particular beneficiary and that higher wages may increase the probability of selection. However, artificially inflating wages or modifying job details solely to improve lottery odds may result in denial or revocation if USCIS determines that the registration or petition was not filed in good faith. 4. What if the wage level selected at registration differs from the wage level listed on the LCA? For registration purposes, USCIS looks only to what OEWS wage level the offered salary meets or exceeds for the relevant SOC code and work location. By contrast, the Labor Condition Application remains governed by Department of Labor wage rules. Accordingly, the wage level used for lottery weighting is independent of the wage level assigned under the DOL framework. A position that properly qualifies as Wage Level I for LCA purposes may nevertheless be assigned a higher wage level for registration weighting if the offered salary meets or exceeds a higher OEWS wage threshold. That said, the final rule requires consistency between the registration, the Labor Condition Application, and the H-1B petition. Petitioners must be able to demonstrate the factual basis for the wage level selected at the time of registration. 5. How does USCIS treat positions with multiple locations or salary ranges? If a position involves multiple worksites, multiple roles, or a wage expressed as a range, USCIS will assign the lowest applicable wage level for lottery weighting purposes. This rule is intended to prevent selective reporting of higher wages or locations to improve selection probability. 6. What information is required to complete the H-1B registration under the new rule? The final rule expands the amount of information that must be provided at the registration stage. In addition to basic employer and beneficiary identifiers, employers must now provide substantive position and wage information, including: Employer Information

• Legal name of the petitioning entity
• FEIN
• Business address
• Authorized signatory

Beneficiary Information

• Full legal name
• Date of birth
• Country of birth
• Passport number
• Whether the beneficiary qualifies for the advanced degree exemption

Position and Wage Information

• Job title and description
• Standard Occupational Classification (SOC) code
• Area or areas of intended employment (worksite location)
• Proffered wage
• The corresponding OEWS wage level (Level I, II, III, or IV)

Beneficiary Status and Location Information (Relevant for the $100,000 Payment) Because the applicability of the $100,000 Presidential Proclamation payment depends on the beneficiary’s physical location and immigration status at the time of filing, we will also need to review and confirm:

• Whether the beneficiary is currently inside or outside the United States
• The beneficiary’s current nonimmigrant status and expiration date
• Any planned international travel before petition filing

7. Can an employer submit multiple registrations for the same beneficiary to improve selection odds? No. Under the beneficiary-centric registration system, each individual beneficiary is entered into the lottery only once, regardless of how many employers submit registrations on that person’s behalf. Multiple registrations for the same beneficiary do not increase the number of lottery entries assigned to that beneficiary. 8. What happens if multiple employers register the same beneficiary at different wage levels? Under the final rule, USCIS applies the lowest wage level among all registrations submitted on a beneficiary’s behalf. Even if one employer registers the beneficiary at Wage Level IV and another at Wage Level I, the beneficiary will be treated as Wage Level I for lottery weighting purposes. Higher-wage registrations do not override lower-wage registrations, and multiple filings do not increase the beneficiary’s odds of selection. 9. How are part-time positions treated for lottery weighting purposes? Lottery weighting is based on the wage rate, not the total number of hours worked or total annual compensation. For part-time positions, USCIS compares the offered hourly rate to the applicable OEWS hourly wage levels for the selected SOC code and work location. DHS considered concerns that employers might attempt to offer part-time positions at unusually high hourly wages in order to increase lottery odds while reducing total working hours. DHS declined to limit weighting to full-time positions or annual salaries, but emphasized that existing fraud and enforcement authorities apply. However, USCIS may deny or revoke an H-1B petition if it determines that the employer misrepresented the part-time or full-time nature of the position, the number of hours the beneficiary would work, or the proffered salary, or otherwise structured the position to manipulate selection odds. 10. Can an employer change the job details after selection? Under the final rule, key job and wage details provided at registration must remain consistent through the LCA and H-1B petition. This includes the employer, beneficiary identity, SOC code, job duties, work location, offered wage, wage level used for weighting, and advanced degree eligibility. Material changes after selection may result in denial or revocation if USCIS determines the registration no longer reflects the proffered position or was used to increase selection odds. If you are interested in registering for the FY2027 H-1B Lottery, don't hesitate to get in touch with our team.