The following is important preliminary information regarding the H-1B cap-subject registration process for the FY2027 H-1B cap to be held March 2026. Please review this alert carefully as you consider sponsoring any foreign national candidate for the H-1B cap.
There are noteworthy changes to the H-1B cap selection process this year. The “$100,000 H-1B entry fee” will not apply to change of status petitions filed on behalf of individuals in the U.S. However, the new weighted allocation selection process for registrants and petitioners seeking to file H-1B cap petitions will require employers and their immigration counsel to perform additional preliminary analysis before registering a candidate for the lottery.
Please reach out to the PLG Immigration Team to alert us about your H-1B cap lottery candidates at your earliest convenience. We will begin to gather information for your H-1B cap registrations in late January and continue on a rolling basis through March 2026.
What is the H-1B cap lottery?
U.S. businesses rely on the H-1B visa program to temporarily employ professional foreign workers in specialty occupations that require theoretical or technical expertise that is normally associated with the attainment of at least a bachelor’s degree in a specialty field related to the occupation.
Most new H-1B petitions are cap-subject, meaning they count toward the annual statutory limit of 65,000 visas, plus an additional 20,000 reserved for individuals with a U.S. master’s degree or higher, and generally must be selected through the annual H-1B registration lottery to be filed. By contrast, certain petitions are cap-exempt and may be filed at any time of year without regard to the numerical limits, including H-1B employment with U.S. institutions of higher education, affiliated or related nonprofit entities, nonprofit research organizations, and governmental research organizations, as well as petitions for individuals who have already been counted against the cap and are seeking extensions, amendments, or changes of employer within H-1B status.
USCIS approves up to 85,000 H-1B cap-subject petitions each year, out of which 20,000 are reserved for individuals who have earned a U.S. Master’s or higher degree, for H-1B status effective October 1st or later. Historically, USCIS has received well over 85,000 H-1B cap requests each year, and has thus resorted to a random selection process for selecting registrants to submit H-1B petitions.
When is the H-1B lottery?
The registration dates for the FY2027 selection process will be March 4 through March 19. During this time, attorneys can register each H-1B candidate the employer wishes to sponsor for an H-1B cap-subject visa via the USCIS online portal. Employers must pay a $215 registration fee for each candidate.
Selection notifications will be announced by March 31, 2026. If an employee is selected in the lottery, the employer will then have 90 days to prepare and submit a completed H-1B petition to USCIS. Employees for whom H-1B petitions are approved will be granted H-1B start dates effective no earlier than October 1, 2026.
What is the new weighted selection process?
On December 29, 2025, USCIS published a final rule, “Weighted Selection Process for Registrants and Petitioners Seeking to File Cap Subject H-1B Petitions”, to replace the previous random lottery process for the selection of new H-1B visas with a system that accords greater weight - and thus a higher chance of selection - to beneficiaries with H-1B job offers at higher wage levels. The rule will take effect on February 27, 2026 in time for the H-1B lottery for FY2027 H-1B visas, unless a court enjoins the rule before then, and will apply to both the H‑1B regular cap of 65,000 visas and the U.S. advanced degree exemption (Master’s cap) of 20,000 visas.
The new selection process will give preference to H-1B registrants offered the highest wages, as determined under the Department of Labor’s OFLC wage survey and its four-level wage range based on the area of intended employment for the Standard Occupational Classification (SOC) code appropriate for the position, no matter what the employer’s job requirements are. A registrant whose offered wage corresponds to Level 4 (the highest tier) of the four-level DOL prevailing wage structure will be entered into the selection pool four times. A Level 3 registrant will be entered three times; a Level 2 registrant, two times; and a Level 1 registrant, once. As a result, the weighted selection process is projected to significantly reduce the selection probability for Level 1 wage registrations, while substantially increasing the selection chances for Level 3 and 4 wages.
The weighted lottery rule will require additional information to be provided in the registration process beyond basic employer and candidate biographical information. The registration will include the highest DOL Prevailing Wage level that the registrant’s offered wage equals or exceeds for the relevant Standard Occupational Classification (SOC) code in the area of intended employment, as determined in coordination with immigration counsel. Where the H-1B registrant is expected to work in multiple locations, they will be assigned the lowest wage level across those locations. Likewise, if there is no applicable OEWS wage results for the occupation and employers instead rely on a private wage survey, they will be assigned the lowest wage level.
Will the $100,000 H-1B entry fee apply?
If an employer intends to sponsor an individual who is in the U.S. in another non-immigrant status for a change of status to H-1B, the $100,000 fee will not apply. If an employer intends to sponsor an individual who is outside of the U.S., and is requesting consular or port of entry processing, the fee will apply. Even if the candidate is in the United States, if USCIS determines that a request for a change of status is not approvable – if, for instance, the agency finds that the beneficiary did not maintain their current status and thus is not eligible to change their status in the United States – the employer would be required to pay the $100,000 fee in order to obtain an approval of the underlying petition.
As discussed in our previous client alert dated November 19, 2025, in September 2025, the White House issued a proclamation requiring employers filing new H-1B petitions for individuals outside of the U.S. to pay a one-time fee of $100,000 (in addition to existing H-1B filing fees) for petitions filed on/after Sept. 21, 2025. Despite ongoing legal challenges, the fee remains in effect.
The fee does not apply to petitions filed with USCIS for amendments, changes of status, or extensions for individuals inside the United States, including changes from F-1, H-4 and other statuses to H-1B status. As a result, employers may plan to sponsor individuals who are in the U.S. for H-1B status pursuant to change of status from F-1 OPT to H-1B, a common transition under the lottery for H-1B cap-subject petitions. Note however, that if the student fails to maintain valid F-1 status or travels abroad while the petition is pending - thereby abandoning the change-of-status request - the employer would need to pay the $100,000 fee or qualify for a national interest exception for approval. F-1 students should therefore remain fully compliant with all status and travel rules.
What is the relevant timeline for H-1B lottery registration?
We recommend the following timeline to most effectively handle your FY2027 H-1B cap submissions:
- Late January 2026 into early March 2026 – The PLG Immigration Team will request information and documents for registration and employers will continue to alert the PLG Immigration Team with the names and contact information of any new H-1B registrants at their earliest convenience. During this same timeframe, we will request required information about the company, the H-1B title and job description, intended worksite location(s) and offered salary. In addition, we will assist employers with the creation of H-1B registrant accounts on the designated USCIS online portal.
Timely responses will be required to ensure we can complete the required preliminary legal analysis and administrative work prior to the opening of the registration period.
- March 2026 – lottery registration dates (to be announced) – The PLG Immigration Team will submit an online USCIS registration form for each qualified employee and will pay the associated registration fee(s) on behalf of clients. The online registration form will contain an attestation from the sponsoring employer that it intends to submit a complete H-1B petition for each registrant selected in the lottery. Therefore, we will work with employers to carefully screen potential H-1B candidates to ensure that they are eligible for H-1B classification prior to submitting the registration form. USCIS does not give preference to registrations filed early in the registration as opposed to later. USCIS reserves the right to conduct additional lottery selections if the 85,000 threshold is not met.
- After the Lottery is Completed – USCIS will conduct and announce the results of the computer-generated lottery. We will report the lottery results to all sponsoring employers via email as soon as we learn of selections.
- April 2026 - The PLG Immigration Team will reach out to all employers and sponsored registrants selected in the lottery to collect any additional documents and information required and will prepare complete H-1B petitions for submission to USCIS within the 90-day timeframe (typically due by June 30th).
Key Takeaways & Action Items for Employers
- The PLG Immigration team will carefully assess your potential H-1B registrant employees’ job descriptions, worksites and salaries before registration to accurately determine the corresponding OFLC Wage Level and, consequently, the number of entries the H-1B registrant will receive. Employers should maintain thorough documentation to support wage levels and job offers.
- Pay particular attention to H-1B candidates currently working in F-1 status with approved Optional Practical Training (“OPT”) or STEM OPT, including but not limited to those that expire from April to July 2026.
- The new selection process will clearly disfavor entry-level workers (wage levels 1-2), even when they are filling critical workforce gaps in key industries (e.g., tech, healthcare, education and manufacturing). Consider and plan for contingencies early, particularly for entry-level H-1B registrants, whose selection rate is expected to drop. Some employees might be eligible for alternate work status, such as: O-1 “extraordinary ability” status; L-1 “intracompany transferee” status; treaty-based status such as E-3, TN or H-1B1; F-1 STEM OPT; J-1 interns and trainees; or dependent status with employment authorization.
- Employers must ensure pay equity across the organization so that U.S. workers are not adversely affected. If you increase wages for foreign nationals in an attempt to gain better odds in the new lottery system (even if the offered wage does not necessarily reflect the skill level required for the position according to DOL’s prevailing wage guidance), you could inadvertently cause an adverse impact on your US workers. This may, in turn, require a compensation adjustment across the board.
In summary, the new weighted lottery selection system gives priority to the most highly paid candidates based on their occupation and geographic area of employment. It strongly favors higher wages (Level 3 and 4 wages) which some employers may be able to support, while significantly reducing odds of selection for Level 1 wages, the entry-level tier of the DOL wage system. However, the odds of selection under the H-1B cap lottery could increase for some registrants due to lower overall participation as a result of the new weighted lottery system, less international student enrollment, and the impact of the $100,000 H1B entry fee on candidates outside of the U.S. Employers must plan early and consult with the PLG Immigration Team to ensure they are prepared prior to the opening of the registration period.
