Weighted Wage-Level H-1B Cap System Proposed by DHS

The Department of Homeland Security (DHS) has proposed a new rule to change the H-1B cap lottery by giving higher chances of selection to beneficiaries offered higher wages under the Department of Labor’s four-level prevailing wage system. Candidates with a Level 4 wage would get four entries, Level 3 three entries, Level 2 two entries, and Level 1 one entry. Employers would need to accurately report the wage level in the registration and provide supporting documentation when filing petitions. USCIS could deny or revoke petitions if employers misrepresent wage levels, though genuine changes in job location may be permissible.

Public comments will be accepted for 30 days after the proposal’s publication on September 24, 2025. The rule is not yet final and, if implemented, could take effect in time for the FY 2027 H-1B cap season (March 2026). Legal challenges are possible.

👉 Key impact: Entry-level (Level 1) candidates would face reduced chances, and employers may need to reassess wage offerings to remain competitive in the H-1B lottery. This is likely to primarily impact international students in the U.S. who recently graduated or are working pursuant to F-1 OPT or STEM OPT and changing status to H-1B through the lottery system and an employer’s petition.