On 23rd Dec 2025, the Department of Homeland Security amended the rules for H-1B registration, which is essential for H-1B employers and visa aspirants for the Cap Season 2027. The new selection process will prioritize the allocation of H-1B visas to more highly skilled and well-paid aliens. The new method eliminates the random selection process under the H-1B lottery. DHS considers it a welcome step to protect wages, working conditions, and job opportunities for the American Worker.
An Overview of the New H1B Rule:
DHS officially announced the new H-1B rule, which will replace the traditional random H-1B lottery for H-1B cap-subject registrations with a weighted selection process. The administration under this new H-1B rule is trying to incentivize higher wages to ensure that employers use the H-1B program for its intended purpose: bringing in specialised talent rather than sourcing cheap labour to undercut American workers.
Key Date: The H-1B rule is scheduled to take effect on February 27, 2026, making it applicable for the FY 2027 H-1B cap season.
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What is really changing?
The most significant change the new regulation brings forward is the introduction of weighted entries based on the Department of Labor’s (DOL) four-tiered wage levels. While the current “lottery system” hasn’t been eliminated, the “odds” are now mathematically tied to the offered salary relative to the local market.
The New Weighting System:
- Wage Level IV (Highest): Entered 4 times into the selection pool.
- Wage Level III: Entered 3 times into the selection pool.
- Wage Level II: Entered 2 times into the selection pool.
- Wage Level I (Entry): Entered 1 time into the selection pool.
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Additional requirements:
- Upfront information: Under the new H-1B rule, employers must provide Employment and Wage Statistics (OEWS) wage level, SOC code, and the area of intended employment at the H-1B registration stage.
- USCIS now has stronger authority to deny or revoke petitions if employers manipulate job descriptions or wages, reassuring the audience about fair enforcement.
Comparing the Process: New vs. Old
| Feature | New Process ( Weighted selection ) | Old Process ( Random Lottery) |
|---|---|---|
| Selection Method | Weighted; higher wage levels get multiple “tickets” in the pool. | Purely random; every valid registration had an equal chance. |
| Probability | Significantly higher for Level III and IV; lower for Level I | The same applies to all applicants, irrespective of salary. |
| Information Required | Specific wage level, SOC code, and location required at registration. | Basic beneficiary and company info. |
| Primary Goal | Prioritize high-skilled, high-paid talent. | Efficiently manage high volume via chance. |
| Integrity checks | Focused on wage level consistency between registration and filing. | Concentrate on the “one entry per person” rules. |
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The Impact of the New H1B Rule on Cap Season 2027:
- Increased Difficulty for Entry-Level Roles: As the math of selection shifts heavily towards more experienced applicants with one for entry-level positions against four for seniors, foreign nationals in entry-level positions (Wage Level I), such as recent international graduates, will see their chances of selection diminish significantly.
- Change in Compensation Strategy of Employers: Employers might feel pressured to increase offered salaries to secure a visa for a “must-have” candidate. The new H-1B rule might completely change the economics of hiring H-1B talent at higher salaries to match Level 2 and 3 wages, and the additional $100,000 fee might reduce the number of US employers interested in the H-1B program.
- Rising compliance costs: As the new H-1B rule requires employers to do much more legal heavy lifting for registration, such as obtaining wage audits and SOC code mapping, compliance costs will increase for H-1B employers.
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