On December 23, 2025, the Department of Homeland Security (DHS) finalized a rule that fundamentally changes how H-1B cap registrations are selected. Beginning February 27, 2026, USCIS will replace the random lottery with a weighted, wage-level–based selection system, to be used for the FY 2027 H-1B cap season (registration expected in early 2026).

This new system will operate alongside the beneficiary-centric registration model introduced in 2024.

Key Takeaways

• • The H-1B lottery will no longer be random; instead, higher wage levels will receive higher odds of selection.
  • Entry-level positions remain eligible but will have reduced selection probability.
  • Employers must provide accurate wage and job information at the registration stage.
  • USCIS will announce lottery registration dates at least 30 days in advance.

How the Weighted Wage System Works

Under the new rule, employers must include wage level information during H-1B registration. Selection will be weighted based on the Department of Labor’s Occupational Employment and Wage Statistics (OEWS) wage levels for the relevant SOC code and geographic area:

Registrations must be submitted at the highest OEWS wage level that the offered salary meets or exceeds. If an employer relies on an alternate prevailing wage survey, the registration should still reflect the corresponding OEWS wage level supported by the salary.

If a beneficiary has multiple registrations at different wage levels, USCIS will assign the beneficiary to the lowest wage level for selection purposes.

Post-Selection Scrutiny

Petitions filed after selection must remain consistent with the registration details, including:

• • SOC code
  • Area(s) of intended employment
  • OEWS wage level

USCIS may deny or revoke petitions if it determines that registration information was manipulated to increase selection odds.

Notably, the rule does not change Labor Condition Application (LCA) procedures, and employers may still select the SOC code and worksite location they determine to be appropriate.

Impact on Employers and Foreign Nationals

This rule is intended to prioritize higher-paid, more experienced workers, while maintaining access for entry-level professionals. Employers should expect increased scrutiny at the registration stage and should begin wage planning earlier in the H-1B process.

DHS has also reserved the authority to suspend the registration system entirely and conduct a petition-based cap selection if necessary.

Farmer Law PC will continue to monitor developments with respect to these and other policy changes and will post updates on our blog as additional information becomes available.