U.S. To Prioritize Higher Wages In New H-1B Selection Process

Highlights

• The Department of Homeland Security (DHS) announced the weighted selection process for cap-subject H-1B petitions will take effect on Feb. 27, 2026.
• The new process marks the third major shift to the H-1B visa lottery in the last decade.
• Through weighted selection, United States Citizenship and Immigration Services (USCIS) will prioritize higher-skilled and higher-paid H-1B registrants, increasing the difficulty of an employer obtaining an H-1B visa for an entry-level position.

With the year end approaching, the DHS announced the impending implementation of a weighted selection process for cap-subject H-1B petitions to take effect on Feb. 27, 2026 in advance of the H-1B registration season for Fiscal Year 2027.

U.S. employers utilize the H-1B visa category to fill roles involving a specialty occupation. Known for its restrictive numerical limitations, the H-1B visa category allots 65,000 visas to individuals employed in specialty occupation roles with an additional 20,000 reserved for such roles to be filled by graduates of U.S. master's degree programs.

Given the delta between the 85,000 visas available and the vacant specialty occupation roles in the United States, the H-1B visa has become increasingly elusive. Moreover, the lottery system itself has become more challenging to navigate, undergoing several significant changes in the last decade. According to the Dec. 23 announcement detailing the latest change, the new weighted selection process will prioritize higher-skilled and higher-paid candidates in the interest of protecting wages, working conditions, and job opportunities for U.S. workers.

The new process requires employers to provide additional details regarding the specialty occupation role, including its wage level, job category (SOC Code), and work locations. Registrations will then be weighted as follows for the regular and advanced degree lottery systems:

The final choices will be performed by random computer selection and will not permit an individual registration to be selected more than once. For additional information on the methodology of the weighted selection process, please see the Sept. 24 Barnes & Thornburg alert issued during the comment period of this rule.

Weighted selection will have a lasting impact for employers, intensifying the challenge of securing work authorization for entry level employees. As such, the update will alter career opportunities for foreign students, as well as prompt employers with critical needs to increase wages.

Despite its changes and challenges, the H-1B remains a necessary method for the temporary employment of foreign national employees. More than ever, it requires a thoughtful, strategic approach, including contingency planning for foreign nationals ultimately not selected through the lottery. Thorough candidate assessments conducted in partnership with immigration experts will highlight concerns and selection likelihood based upon the latest changes to the H-1B visa category.

In preparation for the Fiscal Year 2027 H-1B selection process, Barnes & Thornburg urges employers to consult with immigration counsel to strategically identify H-1B registrants.

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