H-1B Cap Random Lottery Replace with Wage-Level-Based Weighted System

DHS has formally replaced the longstanding random H-1B lottery system used to allocate cap-subject H-1B visas with a wage-level-based weighted selection process. This change is intended to be in effect in time for the FY 2027 H-1B cap season (starting March 2026).

How the New System Works

Under the new system, instead of giving every registered beneficiary the same chance in a random lottery:

• Registrants are entered into the H-1B selection pool with multiple entries based on the wage offered for the job.

• DHS ties this to the Department of Labor’s four-level prevailing wage scale:

  • Level 4 (highest wage): 4 entries

  • Level 3: 3 entries

  • Level 2: 2 entries

  • Level 1 (lowest wage): 1 entry

This gives workers paid at higher wage levels significantly greater statistical odds of being selected compared with workers at lower wage levels.

Employers must now include the appropriate wage level, occupational classification, and work location when submitting H-1B cap registrations. If the wage level on the registration isn’t supported by the evidence in the subsequent petition, USCIS may deny or revoke the petition.

Why It Matters

The change is a major shift from the previous lottery, which treated all registrants equally, toward a system that expressly prioritizes higher-paid, likely higher-skilled roles. This could:

• Encourage employers to offer higher wages to improve selection odds.

• Reduce the likelihood of selection for roles at lower wage levels.

• Lead companies to reevaluate their hiring and wage strategies for H-1B-bound talent.

Implementation and Legal Considerations

• The rule takes effect 60 days after publication in the Federal Register, and is expected to be applied for the H-1B cap season in early 2026.

• Court challenges are possible, which could delay or alter how the rule is implemented.

In Practical Terms

For employers and applicants:

• The wage offered to the beneficiary now directly influences lottery odds.

• Planning and documentation — including correct wage level selection — become more important.

• Lower-paid positions may see reduced chances of selection unless wages meet higher prevailing wage tiers.