U.S. Citizenship and Immigration Services (USCIS) will soon announce the opening of the fiscal year (FY) 2027 H-1B Lottery. While we anticipate the lottery registration process will be similar to years past, USCIS announced at the end of December 2025 it will place a greater weight on higher skilled, higher paid positions. Its goal is to provide high paid positions a greater probability of being chosen in the lottery. This new selection process applies to the general H-1B regular cap of 65,000 visas, as well as the U.S. advanced degree exemption (Master’s cap) of 20,000 visas. The rule is effective on February 27, 2026, which will be in time for FY 2027 H-1B Lottery.
H-1B Cap and Lottery Registration Process
The H-1B lottery registration process requires employers to first electronically register and pay a registration fee for each electronic registration they submit to USCIS using a MyUSCIS registrant online account. Under this process, employers or their authorized representatives will complete a registration requiring information about their company and each requested H-1B cap worker. Only those with selected registrations will be eligible to file H-1B cap-subject petitions within 90 days of selection. The employment start date cannot be earlier than October 1, 2026. The H-1B is available to employers seeking to hire a foreign national worker with at least a bachelor’s degree or equivalent in a relevant field for a position that requires a minimum of a bachelor’s degree in the field (also known as a specialty occupation). The employee must also be paid at minimum the prevailing wage or the actual wage rate, whichever is higher. Under the rule, 65,000 new H-1Bs are issued each fiscal year, which begins on October 1, with an additional 20,000 for graduates of U.S. master’s degree programs. USCIS has historically accepted applications for cap-subject petitions beginning on April 1.
USCIS utilizes a lottery registration process for H-1B cap numbers, which normally opens in early March as there is more demand than there are visa numbers issued. Once the registration period closes, USCIS selects a sufficient number of registrations filed during the registration window to meet the H-1B cap for the next fiscal year. Registrants are only allowed to submit one registration per beneficiary in any fiscal year.
New H-1B Rule Creates Weighted Randomization Process
In the new H-1B selection process, selections will be based on the Occupational Employment and Wage Statistics (OEWS) wage level that applies to the Standard Occupational Classification (SOC) for the position offered by the employer in the area of intended employment. The selection randomization will be weighted as follows:
- Registrants with a level 4 wage will be entered into the selection pool four times;
- Registrants with a level 3 wage will be entered into the selection pool three times;
- Registrants with a level 2 wage will be entered into the selection pool two times;
- Registrants with a level 1 wage will be entered into the selection pool one time.
If an employer chooses to rely on an alternative wage survey instead of the OEWS data, the government will apply the highest level that the offered wage equals or exceeds, and if the offered wage is lower than level 1, then registrants will be entered into the selection pool one time.
Once selections are made, there is still a 90-day period, historically run from April 1 to June 30, to file the selected H-1B petitions. To ensure that each selected H-1B petition is submitted with a bona fide job offer and wage, USCIS will be scrutinizing subsequent H-1B filings and amendments for each selection, and USCIS will particularly be investigating cases where a subsequent amendment decreases the offered wage. Inconsistencies or false statements in subsequent filings could lead to requests for evidence or denials.
DHS is estimating that this change would result in a significant increase in probability of selection for higher-level filings than in the past. The average probability of selection in the past five years was 29.59%. DHS is estimating that the new weighted selection would change probability for each wage level as follows: Level 1 at 15.29%; Level 2 at 30.58%; Level 3 at 45.87%; and Level 4 at 61.16%. However, several recent changes in H-1B policy will complicate these estimations.
Due to a presidential proclamation on September 21, 2025, certain H-1B applications will be subject to a $100,000 fee. The proclamation expires on September 21, 2026. The $100,000 fee does not apply to a change of status filing for foreign nationals who are currently in the United States. For more information, refer to the H-1B Travel Alert.
Legal challenges to the new final rule are expected to follow.
How Should an Employer Prepare for the FY 2027 H-1B Lottery Season?
Employers should contact the Fredrikson Immigration Group as soon as possible with information about the employees who should be registered in the H-1B lottery. We will assess each employee’s eligibility, confirm the position qualifies as a specialty occupation and then prepare the registration to be submitted on the applicable date. If the registration is selected, we will prepare and file the formal H-1B petition with USCIS. Information needed for the registration will at minimum include:
- Job description;
- Worksite address(es);
- Offered wage;
- Employee’s resume;
- Employee’s passport ID page;
- Proof of U.S. master’s or higher degree (if applicable);
- Employee’s nonimmigrant status documents.
Unlike prior years, a wage analysis will need to be performed prior to entering an employee in the lottery to determine how the selection will be weighed.
Identifying Candidates Who Need H-1B Sponsorship
The H-1B cap applies in most situations to new H-1B petitions for foreign workers who have not had H-1B status before. To avoid missing out on filing an H-1B petition under the FY 2027 H-1B cap, it is important to identify candidates who need sponsorship and are in professional positions. Some of the candidates may already be employed and working under temporary work authorization. Below are examples of cases where an employee or job candidate may need an H-1B sponsorship:
- Students who are working under Optional Practical Training (OPT) or Curricular Practical Training (CPT) and will need H-1B sponsorship to continue with their employment in the United States once their OPT or CPT expires.
- Candidates currently in H-1B status with an H-1B cap-exempt employer (institutions of higher education or a related or affiliated nonprofit entity, nonprofit research organizations or governmental research organizations) who are seeking employment opportunities with cap-subject employers.
- Candidates who are in other nonimmigrant work status, such as TN, H-3, H-2, O-1 and J-1, but need to change their status to H-1B.
- Candidates who are in dependent status with work authorization, such as H-4 or J-2 with a valid EAD, L-2 spouse, or E-2 spouse, for whom H-1B would provide work authorization independent from their spouse’s immigration status.
Please contact your team at Fredrikson if you would like our assistance in registering, preparing and filing a cap-subject H-1B petition. We strongly recommend starting the H-1B registration process by identifying registration candidates as soon as possible. Fredrikson will provide further guidance regarding the registration process for FY 2027 as soon as USCIS releases its final guidance.
H‑1B Cap FY 2027 Question & Answer for Human Resources Teams
Q: What changed this year in the H‑1B cap process?
A: USCIS has replaced the traditional random lottery with a wage‑weighted selection system. Registrations offering higher DOL OES wage levels now have greater odds of selection.
Q: When does the new system take effect?
A: The rule becomes effective February 27, 2026, and applies to the FY 2027 cap season (registrations submitted for the lottery to be conducted before April 1, 2026, for start dates on or after October 1, 2026).
Q: Does this change the annual H‑1B cap numbers?
A: No. The statutory caps remain as follows: 65,000 visas for the regular cap; 20,000 visas for the U.S. Advanced Degree Exemption, which are reserved exclusively for individuals who have a master’s degree or higher from a U.S. institution.
Q: How does the wage‑weighted system work?
A: Each registration is assigned a weight based on the wage level the employer commits to pay.
- Registrants with a level 4 wage will be entered into the selection pool four times;
- Registrants with a level 3 wage will be entered into the selection pool three times;
- Registrants with a level 2 wage will be entered into the selection pool two times;
- Registrants with a level 1 wage will be entered into the selection pool one time.
If an employer chooses to rely on an alternative wage survey instead of the OEWS data, the government will apply the lowest highest level that the offered wage equals or exceeds, and if the offered wage is lower than level 1, then level 1 would apply. Registrants will be entered into the selection pool one time. Note that there will be increased scrutiny on amendments to approved H-1B cap petitions, so the wage should be reflective of a bona fide job offer.
Q: Do we need to increase wages to improve selection chances?
A: Not necessarily, but wage level now directly affects selection probability. HR should coordinate with legal counsel to confirm the correct wage level, evaluate whether adjustments are appropriate for key roles, and ensure internal equity and compensation policies remain consistent.
Q: Does this affect cap‑exempt employers?
A: No. Universities, nonprofit research organizations, and certain affiliated entities remain cap‑exempt and are not impacted by the new selection system.
Q: What should HR do differently this year?
A: HR teams will need to determine the offered job, wage level and potential worksites for each H-1B lottery candidate at the time of registration (typically late February to early March). HR teams should also prepare internal teams and managers for changes to selection odds, especially for entry-level roles. HR teams should coordinate with immigration counsel early, given that more details about the position are needed at the time of registration.
Q: How does this impact entry‑level hiring?
A: Entry‑level roles often fall under wage level 1, which now has the lowest selection probability. According to USCIS’s predictive analysis, wage level 1 selection rate will go from 29.59% to 15.29%. We expect that the probability could be even lower if more applications in higher level positions are entered into the lottery. HR teams should:
- Evaluate job classifications;
- Consider whether duties justify a higher wage level;
- Explore alternative visa options for early‑career talent.
Q: What happens if the wage level listed in the registration is wrong?
A: Incorrect wage level, worksite location, or SOC category could lead to registration rejections, H-1B petition denials, compliance issues, and potential fraud concerns if USCIS suspects misrepresentation. Accuracy is critical at the registration stage.
Q: Does this change how many registrations can be submitted for a candidate?
A: No. As before, only one registration per employer per candidate is allowed. Multiple entities may register one individual only if each has a legitimate job opportunity. In that case, the lowest wage level applicable to the offered positions would apply to the individual for selection purposes.
Q: Will this change the probability of being selected?
A: For higher‑wage or senior roles, we expect that selection odds should improve. For lower‑wage or entry‑level roles, we expect the odds to decrease significantly.
Q: Should we consider alternative visa categories?
A: Yes, in a case-by-case manner. Depending on the role and candidate, alternatives may include, but are not limited to:
- TN Visa (Canada/Mexico);
- E‑3 Visa (Australia);
- H-1B1 Visa (Chile or Singapore);
- O‑1 Visa (extraordinary ability);
- L‑1 Visa (intracompany transferees);
- Cap‑exempt H‑1B options.
HR teams should discuss these with immigration counsel early in the hiring cycle.
Q: What should HR teams communicate to managers?
A: HR teams should be in touch with managers early to determine whether to enter an individual into the lottery. HR teams should make the following points clear:
- The H‑1B process is no longer a pure lottery — wage level matters. Entry level positions will have a decrease in selection odds.
- Early planning is essential, and managers who have H-1B candidates should begin preparing job descriptions, worksite location and wage estimates.
- Some roles may require alternative strategies.
- HR teams and immigration counsel must be involved before job offers are finalized for foreign candidates.
Q: What should we do now to prepare for the FY 2027 season?
A: At this time, HR teams should be doing the following:
- Identify all potential H‑1B candidates;
- Confirm job duties, worksite location(s) and wage levels for each;
- Send documents to Immigration Counsel early for wage leveling analysis;
- Begin internal approvals early;
- Coordinate with immigration counsel on registrations. Each registration will need the following documents:
- Job description;
- Worksite address(es);
- Offered wage;
- Employee’s resume;
- Employee’s passport ID page;
- U.S. master’s or higher degree (if applicable);
- Employee’s nonimmigrant status documents.
The Immigration Group will host a webinar Tuesday, February 17, that will cover more details related to employment-based immigration updates in light of H-1B Lottery changes and Executive Orders.
