USCIS Replaces Random H-1B Lottery with Wage-Weighted Selection

The annual randomized H-1B lottery will be replaced with a new weighted selection process that favors workers with the highest wage offers, according to a final rule issued Dec. 29, 2025, by U.S. Citizenship and Immigration Servies (USCIS).

The new regulation aims to block visas from going to lower-paid jobs and incentivize U.S. employers to petition for higher-paid — and presumably higher-skilled — foreign workers.

The rule is set to take effect Feb. 27, just in time for the fiscal year 2027 H-1B cap registration season, absent any legal challenges. If the rule is implemented for the upcoming cap season beginning this spring, USCIS is expected to publish instructions for submitting registrations under the revised selection process.

The change “marks one of the most significant structural shifts to the H-1B cap process in decades” and will require employers to take a new approach to their annual immigration strategy, said Jocelyn Campanaro, national immigration practice group co-chair and partner in the Denver office of law firm Fisher Phillips.

HR Q&A: Key H-1B Changes Employers Must Know

How H-1B Selection Will Work

Workers registered for the H-1B cap lottery will be entered into a selection pool using a weighted system based on the U.S. Department of Labor’s (DOL’s) Occupational Employment and Wage Statistics data.

“Instead of each registration being treated equally, registrations will receive multiple entries into the selection process based on the wage level for the job,” Campanaro said. “Each H-1B registration will still be placed into a single selection pool, but registrations tied to higher wage levels will be entered into that pool more times, increasing their likelihood of being selected.”

Workers would be entered into the selection pool four times if assigned to the highest Level IV wage level, three times if in Level III, twice in Level II, and just once if assigned to Level I, the lowest wage band, meant for entry-level work.

Campanaro noted that wage levels reflect relative seniority and job complexity within a specific occupation and location, not simply how much the worker is paid.

“As USCIS acknowledged during rulemaking, and as employer groups warned in public comments, many H-1B workers earn salaries well above U.S. averages but may still fall into Wage Level I or II due to occupational classification, geographic wage structures, or required experience or supervisory expectations,” she said.  

Eric Hause, an attorney in the White Plains, N.Y., office of Jackson Lewis, explained that for each registration employers must submit a Standard Occupational Classification (SOC) code, area of intended employment, and the highest wage level the offered wage meets or exceeds.

“In addition, employers should be aware that for selected petitions, USCIS will be requiring evidence of the basis of the wage level selected and focusing on discrepancies between the representations made during registration and the substantive material and explanation in the petition,” he said. “Inconsistencies or false statements could lead to requests for evidence, denials, or referrals for enforcement.”

Hause added that employers in lower-wage locations may face structural disadvantages in selection odds because USCIS rejected proposals to normalize wages nationally or adjust for cost-of-living beyond the existing methodology.

Specialty Credential: U.S. Employment Immigration

Next Steps for Employers

Employers and their immigration counsel should undertake an evaluation of prospective H-1B candidates to determine the appropriate wage level for each.

Campanaro advised employers to audit H-1B-eligible roles for accurate SOC codes and defensible wage level assignments; ensure wage level, SOC code, job description, and labor condition application details align across registration and petition stages to avoid requests for evidence or denials; and evaluate alternative visa options for critical talent.

The latest changes to the H-1B lottery selection follow President Donald Trump’s proclamation requiring a $100,000 fee for H-1B petitions filed abroad, and comes at the same time that the DOL is expected to issue a rule increasing the prevailing wage levels for H-1B cases.

The Trump administration will continue to demand more from both employers and workers as part of its commitment to H-1B reform, said Matthew Tragesser, a spokesman for USCIS.