The New H-1B Cap “Weighted Lottery” Final Rule: Higher Wages Equal Better Odds

The Department of Homeland Security published a final rule that will take effect on February 27, 2026, changing how USCIS selects cap-subject H-1B registrations. While headlines this week focused on the administration’s announced pause on immigrant visa processing for nationals of 75 countries, that development should not affect the H-1B cap registration process because H-1B is a non-immigrant classification.

The lottery process will no longer be purely random. Instead, USCIS will apply a wage-level weighting system that increases selection odds for registrations tied to higher wage levels, with the stated goal of aligning the H-1B program more closely with “higher-skilled and higher-paid” workers while preserving access at all wage levels. The rule is effective February 27, 2026, in time for the FY 2027/ March 2026 H-1B registration season.

Wage-Weighted Entries

Under the final rule, USCIS will “weight” entries based on the Occupational Employment and Wage Statistics (OEWS) wage level tied to the job’s Standard Occupational Classification (SOC) code and area of intended employment.  

In a direct reversal from the newly-implemented single entry per registrant policy from the March 2025 lottery, this year, the same beneficiary can be entered into the selection pool multiple times, with the number of “entries” depending on wage level:

Wage Level I = 1 entry
Wage Level II = 2 entries
Wage Level III = 3 entries
Wage Level IV = 4 entries

More entries will meaningfully improve the odds for higher-earning individuals. Each unique beneficiary is still counted once toward cap projections, regardless of how many registrations were submitted for that person. The rule also adds an anti-gaming guardrail: if multiple registrations exist for the same beneficiary, USCIS assigns that beneficiary to the lowest wage level among the registrations. In other words, multiple registrations do not allow a beneficiary to “shop” for a higher weighting.

New Data Collection

To facilitate the new system, DHS must collect wage information at the time of lottery registration. Registrants must select the highest OEWS wage level that the offered wage equals or exceeds, and must provide the SOC code and the area of intended employment used to determine the wage level. 

If the role involves multiple locations, the registrant must use the lowest corresponding wage level among the locations/positions. This is another integrity measure designed to prevent strategic “papering” of higher wages or higher-pay locations.

Crucially for employers, the wage level is effectively “locked in” as of the registration date, so employer-petitioners should be prepared to document and defend the basis for the wage level used at registration when filing the Labor Condition Application and H-1B petition. 

USCIS has indicated that it will give increased scrutiny where post-selection changes appear designed to manipulate wage level or selection odds, including potential denial or revocation in cases viewed as an attempt to unfairly increase the chance of selection.

High-Rollers Are The Big Winners

Because the weighting is directly tied to wage levels, the most obvious winners here will be employers and roles that routinely land in OEWS Wage Level III and IV. This will predictably favor sectors that pay at the top of the market for specialty talent, including technology, finance, quantitative and data-driven roles, management consulting, and other high-margin industries that support premium wages across major metro areas.

Conversely, entry-level positions, early-career hires, and roles based in lower-wage geographic areas will likely face reduced selection odds. However, Level I and Level II roles will remain eligible. But when the pool is crowded, weighting inevitably reallocates probability toward higher wage levels.

Potential for Challenges

As of the date of this post, there has not been publicly reported litigation specifically challenging the weighted-selection final rule. It’s worth noting that the final rule, unlike the Proclamation announcing the $100,000 H-1B fee, went through the standard Administrative Procedure Act notice-and-comment process: DHS issued a notice of proposed rulemaking on September 24, 2025, received thousands of public comments, and then finalized the rule as proposed. That said, DHS expressly acknowledged the possibility of future litigation in the rule’s preamble, so readers should check back for updates to this post if any challenges are filed before the rule takes effect on February 27, 2026.

A More In-Depth Lottery Prep For FY2027

For the first time, employers need to identify DOL wage levels and SOC codes in advance of the lottery. Recommended preparation for this year’s lottery is as follows:

     1. Confirm the SOC code and intended worksite geography. 
     2. Identify the corresponding wage level and evaluate the implications for budgeting and lottery entry.
     3. Ensure the offered wage and job leveling are internally consistent.

Based on these changes, the “lottery” will operate much more like a market-driven allocation. This year, employers need to treat their registrations as a strategic step, rather than a random submission.