Intro paragraph summarizing the change:
I woke up to headlines the way many of you did — a familiar program quietly remade. The U.S. Department of Homeland Security has finalized a rule that replaces the long‑standing random H‑1B lottery with a weighted, wage‑level selection process. This is not a tweak: it changes how registrations will be counted, what data employers must provide at registration, and who will have better odds when the FY 2027 cap season opens. Major coverage of the change is available in The Times of India No more lottery: How the new H-1B visa selection system will work — key changes explained and the final regulation appears in the Federal Register Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions.
Background: why this matters
For decades companies and applicants treated the H‑1B cap like a high‑stakes lottery: thousands of registrations for 85,000 annual slots (65,000 regular + 20,000 master’s exemption) and an equal numerical chance — regardless of salary or seniority. That parity has been criticized as susceptible to gaming (multiple employer filings for the same beneficiary, aggressive staffing models that push large volumes of low‑wage registrations), and policymakers now aim to make selection reflect wage levels tied to skills and market value.
What the old lottery was
- Registrations were submitted during a short window each spring.
- When registrations exceeded the cap, USCIS conducted a random draw; every unique beneficiary effectively had the same chance.
- Multiple registrations for the same beneficiary (from different employers) could materially improve that beneficiary’s overall odds.
- Employers only had to provide limited details at registration; much of the wage and SOC/LCA documentation came at petition stage.
The new selection system — step by step
The final regulation replaces a purely random beneficiary draw with a weighted selection process that gives greater statistical odds to registrations tied to higher wage levels as defined by the Department of Labor’s Occupational Employment and Wage Statistics (OEWS). Key points:
Effective date: the final rule is effective February 27, 2026 and will apply to the FY 2027 registration season (registrations expected March 2026) — see the Federal Register notice cited above.[1]
Weighting by wage level: each registration will be assigned an OEWS wage level for the job/area. A registration that equals or exceeds Level IV will be entered into the selection pool four times, Level III three times, Level II twice, and Level I once. That means higher‑paid roles receive proportionally higher odds.
Employer/registration data requirements: registrants must provide the SOC code, area of intended employment, and the wage level indicated at registration. At petition stage, USCIS will require evidence supporting the wage level stated in registration and alignment with the Labor Condition Application (LCA).
Beneficiary‑centric selection retained: each unique beneficiary is entered only once in the sense that the system now prevents duplicate identity gaming; but the weight of that single beneficiary’s entry depends on the wage level tied to the registration.
Cap numbers unchanged: the statutory caps (65k + 20k) remain the same; the rule changes the method of selection, not the quantity of visas.
Who is affected
Entry‑level workers and recent graduates: their chances are likely to decline if their offers are at lower OEWS wage levels in their occupation/area. Analysis from advocacy and industry groups suggests Level I odds fall while Level IV odds rise significantly.
Mid‑career and senior professionals: those offered higher wage levels will benefit.
Employers: large firms able to offer higher wages may gain selection advantages; smaller employers, startups, universities, and nonprofits should note that some cap‑exempt categories remain unchanged.
Timelines — what to watch
- Feb 27, 2026: rule effective date.
- March 2026: expected registration window for FY 2027 (confirm actual USCIS dates when announced).
- Between registration and petition: employers must preserve the wage classification and be prepared to document it in an H‑1B petition if selected.
Potential pros and cons (balanced view)
Pros:
- Incentivises higher wages and could discourage companies from using H‑1B for low‑paid staffing.
- Aims to reduce gaming and duplicate‑filing abuses that advantaged certain beneficiaries.
- Aligns selection more closely with the program’s stated goal of filling higher‑skilled roles.
Cons:
- May disadvantage early‑career entrants and international students seeking first professional roles in the U.S.
- Could disadvantage small businesses and startups that cannot pay at Level IV rates.
- OEWS wage levels reflect relative seniority within an occupation and region — not absolute salary — so weighting may produce odd incentives or geographic distortions.
Practical advice — what applicants and employers should do now
For applicants (students, early professionals):
- Ask prospective employers for the SOC code and offered wage level and factor selection odds into job decisions.
- Explore cap‑exempt employers (universities, research nonprofits) and non‑cap vehicles (L‑1, O‑1 where applicable) as alternatives.
- Build longer‑term plans: higher experience and advanced degrees may improve future odds.
For employers (HR, legal, hiring managers):
- Audit job descriptions and compensation bands against DOL OEWS wage data.
- Decide whether to increase offers to target higher weight tiers — but only if sustainable and defensible.
- Prepare stronger documentation at petition stage: SOC code, LCA alignment, and evidence that the wage level claimed at registration is accurate and consistent.
- Consider cap‑exempt hiring or early engagement with immigration counsel to reform filing strategies.
A few words on sources and authority
USCIS and DHS have framed the change as a measure to protect American workers and strengthen integrity; the final rule and its rationale are published in the Federal Register.[2] USCIS guidance on the electronic registration and the broader H‑1B process remains a necessary companion reference for operational details (see USCIS H‑1B electronic registration guidance).[3]
Conclusion
This is a structural shift in H‑1B allocation: the lottery as we knew it gives way to a wage‑weighted selection that privileges higher‑paid roles. If you are planning an H‑1B registration in 2026–27, treat this as a strategic change, not a temporary policy blip. Employers will need to align compensation and compliance; applicants must make career choices with new odds in mind. I find this moment both sobering and clarifying — it forces everyone in the ecosystem to be more deliberate about job design, pay equity, and the real skills we say we value.
References
- Times of India: "No more lottery: How the new H-1B visa selection system will work — key changes explained". https://timesofindia.indiatimes.com/business/international-business/no-more-lottery-how-the-new-h-1b-visa-selection-system-will-work-key-changes-explained/articleshow/126153620.cms
- Federal Register / GovInfo: Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H1B Petitions (final rule). https://www.govinfo.gov/app/details/FR-2025-12-29/2025-23853
- USCIS: H1B electronic registration process. https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations/h-1b-electronic-registration-process
Regards,
Hemen Parekh
Any questions / doubts / clarifications regarding this blog? Just ask (by typing or talking) my Virtual Avatar on the website embedded below. Then "Share" that to your friend on WhatsApp.
Get correct answer to any question asked by Shri Amitabh Bachchan on Kaun Banega Crorepati, faster than any contestant
Hello Candidates :
- For UPSC – IAS – IPS – IFS etc., exams, you must prepare to answer, essay type questions which test your General Knowledge / Sensitivity of current events
- If you have read this blog carefully , you should be able to answer the following question:
- Need help ? No problem . Following are two AI AGENTS where we have PRE-LOADED this question in their respective Question Boxes . All that you have to do is just click SUBMIT
- www.HemenParekh.ai { a SLM , powered by my own Digital Content of more than 50,000 + documents, written by me over past 60 years of my professional career }
- www.IndiaAGI.ai { a consortium of 3 LLMs which debate and deliver a CONSENSUS answer – and each gives its own answer as well ! }
- It is up to you to decide which answer is more comprehensive / nuanced ( For sheer amazement, click both SUBMIT buttons quickly, one after another ) Then share any answer with yourself / your friends ( using WhatsApp / Email ). Nothing stops you from submitting ( just copy / paste from your resource ), all those questions from last year’s UPSC exam paper as well !
- May be there are other online resources which too provide you answers to UPSC “ General Knowledge “ questions but only I provide you in 26 languages !
No comments:
Post a Comment