The U.S. Department of Homeland Security has fundamentally changed how H-1B cap registrations are selected for the FY 2027 H-1B season. A final rule effective February 27, 2026, replaces the purely random lottery with a wage-based weighted selection process that gives higher-paid, higher-skilled positions a significantly better chance of selection.

The FY 2027 H-1B registration window opened on March 4, 2026 and closed on March 19, 2026, with USCIS expecting to announce selections by March 31. Selected employers will have until June 30, 2026 to file their full H-1B petitions.

Key Takeaway

Under the new weighted system, employers offering DOL Wage Level 4 salaries get 4x the entries in the lottery pool compared to Level 1 positions. Combined with the advanced degree pool, a Level 4 position for a U.S. master's degree holder could receive up to 8 total entries.

How the Weighted Selection Works

Under the new system, employers must declare the DOL wage level and Standard Occupational Classification (SOC) code at the time of registration β€” information that was previously only required during the full petition filing stage. The wage level determines how many times a registration is entered into the selection pool.

DOL Wage LevelGeneral Pool EntriesAdvanced Degree Pool EntriesTotal Maximum Entries
Level 1 (Entry)112
Level 2224
Level 3336
Level 4 (Highest)448

New Registration Requirements

Employers must now state the following under penalty of perjury on their H-1B registration: the SOC code for the proposed position, the area of intended employment, the wage level being offered based on DOL prevailing wage data, and an attestation that the job offer is bona fide β€” meaning the employer truly has a position to fill at the time of registration.

Anti-Fraud Safeguards

USCIS has implemented safeguards to prevent employers from inflating salary offers to gain an unfair advantage. After selection, employers must submit evidence of how they determined the wage level, including the DOL prevailing wage data sheet, the employer's reasoning for worksite assignment, and internal salary analysis documentation.

A new edition of Form I-129, mandatory starting April 1, 2026, requires more detailed information about the foreign national's qualifications, including education, experience, skills, and other background. Any discrepancies between the registration and petition stage will receive heightened scrutiny.

Increased Compliance Enforcement

Beyond the selection process changes, employers face significantly higher compliance risk in 2026. The Department of Labor has launched Project Firewall, which increases H-1B compliance audits investigating whether employers meet their pay and working condition obligations. Both DHS and DOL are conducting more frequent site visits.

The $100,000 annual visa fee under the presidential proclamation also applies in certain cases involving beneficiaries outside the United States β€” adding a major cost consideration for employers sponsoring H-1B workers from abroad.

Impact on Employers and Workers

The weighted system fundamentally changes the strategic calculus for H-1B hiring. Entry-level positions at Wage Level 1 now have the lowest probability of selection, while senior-level positions at Level 4 are significantly favored. This incentivizes employers to petition for more experienced and higher-compensated foreign workers.

For the FY 2026 cap cycle, approximately 339,000 unique beneficiaries were registered β€” a significant decrease from 442,000 in FY 2025. The beneficiary-centric selection process introduced in FY 2025 has substantially reduced attempts to game the system through multiple registrations.

⚠️ Not Legal Advice. This content is general information only. Consult a licensed U.S. immigration attorney for case-specific guidance.

Frequently Asked Questions

How does the wage-based H-1B lottery work?
The new system enters each registration into the selection pool multiple times based on the DOL wage level. Level 1 gets 1 entry, Level 2 gets 2, Level 3 gets 3, and Level 4 gets 4 entries. If the beneficiary also qualifies for the advanced degree pool, the entries are doubled.
When is the FY 2027 H-1B registration window?
The registration period ran from March 4 to March 19, 2026. USCIS expects to announce selections by March 31, 2026. Selected employers have until June 30, 2026 to file full petitions.
Can employers inflate wages to get more lottery entries?
USCIS has anti-fraud safeguards requiring employers to submit evidence of how they determined the wage level after selection. Discrepancies between registration and petition filings receive heightened scrutiny.
Is the new Form I-129 mandatory?
Yes. Starting April 1, 2026, all H-1B petitions must use the updated Form I-129 edition dated February 27, 2026. It requires more detailed information about the beneficiary qualifications.