Does the new system eliminate the H-1B lottery entirely?

USCIS is still running a selection process, but it is no longer random. Instead, each registration receives a number of entries based on its wage level, and USCIS selects from that weighted pool.

Do Level I wage positions still qualify for the H-1B program?

Yes. Level I positions are still eligible, but they receive only one entry in the weighted selection system, which means lower chances of being chosen compared to higher wage levels.

How do I know which wage level applies to a job?

Wage levels come from the Department of Labor’s OEWS system and depend on the job’s: • required skills • level of responsibility • experience needed • geographic location Employers can look up wage levels using the DOL Wage Search Tool.

Does the new system affect H-1B workers already in the U.S.?

The new weighted selection system applies only to cap-subject H-1B registrations. It does not currently affect: • H-1B extensions • H-1B transfers to new employers • Changes in job location

What about the new $100,000 H-1B fee? Who must pay it?

The $100,000 fee applies to certain new H-1B petitions, particularly for workers abroad seeking initial H-1B status. It does not typically apply to: • extensions • amendments • transfers within the U.S. A federal court recently rejected a challenge to the fee, meaning employers should plan for possible additional costs.

New H-1B Selection Process: What Employers Need to Know

On December 23, 2025, the Department of Homeland Security (DHS) announced a rule ending the traditional random lottery for the H-1B visa program and replacing it with a wage-based weighted selection system.

The rule is scheduled to take effect on February 27, 2026, ahead of the fiscal year 2027 H-1B cap season. Like other major H-1B changes in the past, this one could be subject to court challenges or injunctions, which might impact when or how it takes effect.

Key Takeaways

No more random lottery. USCIS plans to use a wage-based, weighted system to select H-1B registrations.
Higher wages get more chances. Wage Level IV gets four entries, Level III gets three, Level II gets two, and Level I gets one.
Rule takes effect February 27, 2026. The rule is set to apply to the next H-1B cap season, though any potential legal challenges could impact timing.
Employers should prepare by reviewing wage levels, planning registrations early, and keeping an eye out for any policy developments that could affect the rollout.

How the New Weighted System Works

Employers will still complete the standard H-1B electronic registration, but the chance of being selected now depends on the wage level offered for the position. These wage levels come from the Department of Labor’s Occupational Employment and Wage Statistics (OEWS) system and are used to determine the prevailing wage for a job in a specific location.

Instead of a single random lottery, each registration will now receive a certain number of “entries” based on the wage level offered for the position.

Number of entries per wage level

Wage Level	Number of Entries
Level IV (highly experienced / specialist)	4 entries
Level III (experienced)	3 entries
Level II (early career / some experience)	2 entries
Level I (entry level)	1 entry

More entries mean a higher chance of selection, similar to having multiple “tickets” in a drawing.

Annual Caps Remain the Same

The updated process does not change the overall number of available visas:

65,000 regular H-1B cap
20,000 additional slots for U.S. advanced degree holders

Level I roles are still allowed, but they receive the lowest selection weight under the new system.

When the Changes Start

The rule becomes active on February 27, 2026, meaning it will apply to the upcoming H-1B cap season. This rule could also face legal challenges or injunctions, which might affect when or how it takes effect.

USCIS is expected to provide additional guidance before the FY 2027 cap season opens, including updates on:

How to complete the updated registration form
Required employer certifications
Documentation requirements for demonstrating wage levels
Clarified rules on duplicate registrations and fraud detection

Employers and applicants can keep an eye out for updates on the USCIS H-1B registration page.

What Employers Should Do Now

To stay competitive and avoid delays, employers may want to:

Review wage levels. Confirm the correct wage level for each intended H-1B role. Higher wage levels receive more selection weight.
Plan early. Expect revised registration procedures, more detailed attestations, and possible system updates from USCIS.
Factor in new costs. The new $100,000 H-1B filing fee was recently upheld in federal court, which could have a major impact on planning and budgeting.
Consider alternative options. For roles or candidates unlikely to qualify under higher wage levels, employers might consider O-1A, EB-1A, L-1, or other pathways.

Ellis can help you navigate these changes and get ready for the upcoming cap season — get in touch today.

This update is for informational purposes only and does not constitute legal advice.