DHS Replaces Random H-1B Lottery with Wage Weighted Selection System - HR ALERTS

DHS Replaces Random H-1B Lottery with Wage Weighted Selection System

Effective: February 27, 2026

Applies To: Fiscal Year 2027 H-1B cap registration process beginning March 2026

The U.S. Department of Homeland Security has finalized a major change to how cap subject H-1B visas are selected. The long standing random lottery will be replaced with a wage based weighted selection system that favors higher paid positions.

What Changed

Instead of a purely random lottery, H-1B registrations will now be selected based on the wage level associated with the job offer, using the U.S. Department of Labor four level prevailing wage system.

Each registration will be entered into the selection pool multiple times depending on wage level:

• Level 4 wages: entered four times

• Level 3 wages: entered three times

• Level 2 wages: entered two times

• Level 1 wages: entered one time

Higher wages increase the odds of selection but do not guarantee approval.

When This Takes Effect

• Final rule effective: February 27, 2026

• First applied to: FY 2027 H-1B cap registration

• Registration period: March 2026

What This Means for Employers

• Employers offering higher wages will have improved odds of H-1B selection.

• Entry level or lower wage positions will face reduced selection likelihood.

• Wage strategy will now directly impact immigration outcomes.

• Job leveling and wage determinations should be reviewed carefully before registration.

This change aligns the H-1B program more closely with wage based prioritization and may significantly affect workforce planning for employers relying on foreign talent.

Reference: 90 FR 60864

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