FY2027 H-1B Lottery Will Adopt a Wage-Based Weighted Selection System: What Employers Need to Know

The H-1B season is upon us again! As we approach the registration window, we want to ensure you are well-prepared for this year’s H-1B cycle, especially given the recent H-1B lottery policy reforms.

The U.S. Department of Homeland Security (DHS) has issued the final rule introducing a wage-based weighted random selection system for cap-subject H-1B registrations.

The rule will take effect on February 27, 2026 and is expected to apply to the FY2027 H-1B registration season (typically opening in March).

1. What is “Weighted Selection”?

The H-1B lottery will remain random, but selection will be weighted based on wage level.

When a lottery is required, USCIS will assign different weights to each registration based on the candidate’s Occupational Employment and Wage Statistics (OEWS) wage level, and then conduct a weighted random selection. Registrations associated with higher wage levels will receive greater weight and, accordingly, a higher chance of selection.

Under the final rule, USCIS will apply different numerical weights based on the candidate’s wage level. Specifically:

• Level IV registrations receive four entries into the selection pool 

• Level III registrations receive three entries into the selection pool 

• Level II registrations receive two entries into the selection pool 

• Level I registrations receive one entry into the selection pool

Candidates eligible for the U.S. master’s cap will follow this same entry mechanism across two separate selection rounds, effectively doubling their total number of entries into the pool.

DHS has emphasized that this weighting mechanism affects only selection probability. Each candidate continues to be counted as a single cap number, regardless of the number of weighted entries assigned for lottery purposes.

2. How Is the Wage Level Determined?

USCIS will not rely on an employer’s subjective selection of a wage level. Instead, the agency will assess the registration based on the objective information provided at the time of registration, including: 

• The SOC occupational classification

• The intended area of employment

• The proffered wage

Using the applicable OEWS data, USCIS will identify the highest wage level that the offered salary equals or exceeds, and that level will be used for the lottery. 

3. Increased Importance of Accuracy at the Registration Stage

The H-1B electronic registration is expected to open in early March. Due to the new H-1B lottery policy changes where wage level directly affects lottery weighting, the registration process will require earlier and more precise evaluation by attorneys.

At the registration stage, employers will be required to provide information about the company, the position, and the applicable wage level. Because lottery selection rate of each candidate is directly tied to the wage level, it is critical for our legal team to determine the SOC code and wage levels to ensure they meet the latest USCIS compliance standards before the registration is filed.