The H-1B lottery system is undergoing a major structural change. A new rule published in the Federal Register replaces the traditional random lottery with a wage-based weighted selection process for H-1B cap registrations. The official rule for the Weighted Selection Process for H-1B Cap Registrations can be reviewed here.
For U.S. employers and foreign professionals preparing for the upcoming H-1B cap season, this change could significantly impact hiring strategy, prevailing wage planning, and long-term employment-based immigration decisions.
In this article, we break down:
- What the new H-1B weighted selection rule means
- How the wage-based selection system works
- Which employers may benefit — and which may face challenges
- Compliance risks under the new rule
- Strategic planning tips for the H-1B cap season
- Frequently asked questions
Background: How the H-1B Lottery Worked Before
Historically, when USCIS received more H-1B registrations than the annual cap (65,000 regular cap + 20,000 advanced degree exemption), it conducted a random lottery selection process.
Under the prior system:
- All properly submitted H-1B registrations had equal odds.
- Wage level did not impact lottery selection.
- Employers had limited ability to influence selection probability beyond filing correctly and on time.
That framework has now changed.
What Is the New H-1B Weighted Selection Rule?
Under the new regulation, USCIS will allocate greater selection weight to higher wage levels rather than treating all H-1B registrations equally.
Instead of a purely random H-1B lottery:
- Registrations associated with higher Department of Labor (DOL) prevailing wage levels receive more weighted entries.
- Lower wage levels receive fewer weighted entries.
- USCIS conducts selection using this weighted structure when registrations exceed the H-1B cap.
This transforms the H-1B lottery from a purely chance-based system into one influenced by compensation level.
Why Did USCIS Change the H-1B Lottery System?
According to DHS policy goals, the rule aims to:
- Prioritize higher-skilled, higher-paid positions
- Encourage competitive wage offers
- Align the H-1B visa program with economic demand
- Reduce perceived misuse of entry-level wage classifications
This represents one of the most significant H-1B policy changes in recent years.
How H-1B Prevailing Wage Levels Affect Selection
H-1B prevailing wages are divided into four levels under the Department of Labor system:
- Level I – Entry-level
- Level II – Qualified employees with moderate experience
- Level III – Experienced professionals
- Level IV – Highly experienced or specialized professionals
Under the new weighted H-1B selection system:
- Level III and Level IV wages may significantly increase selection odds.
- Level I wages remain eligible but may carry lower statistical probability.
- The H-1B cap process is no longer neutral regarding wage classification.
Importantly, this does not eliminate entry-level H-1B cases, but it changes the competitive landscape.
What This Means for Employers Filing H-1B Petitions
1. Wage Strategy Is Now Directly Tied to Lottery Odds
For the first time, compensation planning may influence H-1B selection probability.
Employers should evaluate:
- Whether the offered salary supports a higher wage level
- Whether job duties justify Level III or IV classification
- Budget flexibility for key foreign national hires
- Long-term workforce planning beyond the initial H-1B filing
2. Early H-1B Cap Season Planning Is Critical
Wage level is determined by:
- Job description and complexity
- Required education and experience
- Worksite location
- Occupational (SOC) classification
Because these factors must be strategically aligned, employers should begin H-1B case preparation well before the electronic registration period.
3. Startups and Smaller Employers May Face Greater Competition
Early-stage companies often classify roles at Level I or II wages. Under the weighted H-1B lottery system, those registrations may have reduced odds compared to higher wage classifications.
This does not prevent sponsorship — but it may require:
- Careful job structuring
- Alternative visa evaluation
- Long-term immigration strategy planning
What This Means for H-1B Beneficiaries
Foreign professionals should understand:
- Wage level may impact selection odds.
- Entry-level positions may face steeper competition.
- Backup immigration pathways may be important.
Depending on the case, alternative strategies may include:
- Cap-exempt H-1B employment
- O-1 visas for individuals with extraordinary ability
- L-1 intracompany transfer visas
- PERM labor certification planning
- Other employment-based visa options
Strategic immigration planning is increasingly important in a competitive H-1B environment.
Compliance Risks Under the New H-1B Rule
Because wage level now affects lottery probability, USCIS scrutiny may increase in areas such as:
- Consistency between H-1B registration and filed petition
- Accurate job duty descriptions
- Proper SOC code classification
- Prevailing wage compliance
Material inconsistencies or misrepresentations could result in:
- H-1B petition denial
- Revocation
- Site visits or fraud investigations
Accurate and defensible H-1B registration strategy is essential.
H-1B Weighted Lottery FAQ
Can entry-level H-1B candidates still be selected?
Yes. Level I positions remain eligible. However, selection probability may be lower compared to higher wage levels.
Does offering a higher salary guarantee H-1B selection?
No. The system remains a selection process, not an automatic approval. Higher wages may improve odds but do not guarantee selection.
Does the H-1B master’s cap still apply?
Yes. The advanced degree exemption remains in place. However, weighted selection may affect how those registrations are selected if numbers exceed the cap.
Should employers increase wages solely to improve lottery odds?
Wages must be legitimate and supported by business reality. Artificial wage inflation without justification can create compliance exposure.
Strategic Takeaways for the Upcoming H-1B Cap Season
The move from a random H-1B lottery to a wage-based weighted selection system changes employer strategy significantly.
Employers should:
- Review job descriptions months in advance
- Conduct prevailing wage analyses before registration
- Budget strategically for foreign national hires
- Consider backup visa options
- Align hiring timelines with immigration realities
Foreign professionals should:
- Understand how wage level affects H-1B odds
- Communicate early with employers
- Develop contingency immigration plans
Final Thoughts: The Future of the H-1B Visa Program
The new H-1B weighted selection rule signals a broader federal policy direction — prioritizing higher wages and specialized roles within the annual H-1B cap.
For companies competing for global talent, preparation now directly affects probability.
Wage strategy, compliance planning, and early legal guidance are no longer optional — they are essential.
If your company plans to participate in the upcoming H-1B cap season, early strategic planning is essential.
Schedule an H-1B Strategy Session with Burgos Law
If your company is preparing for the upcoming H-1B cap season or evaluating long-term employment-based immigration options, strategic planning is critical.
Burgos Law provides H-1B strategy sessions for:
- U.S. employers preparing H-1B cap registrations
- Companies reviewing wage level strategy and prevailing wage compliance
- HR professionals managing H-1B extensions, amendments, or transfers
- Foreign professionals navigating status, travel, or change-of-employer decisions
As an employment-based immigration law firm, we advise employers on:
- H-1B visa strategy
- Prevailing wage analysis
- USCIS compliance
- Federal Register policy changes
- Long-term workforce immigration planning
Proactive planning reduces risk. Strategic preparation improves outcomes.
Learn more about H-1B Visas: here
Contact Burgos Law to schedule a personalized H-1B strategy session
Published: February 17, 2026
Written by Attorney Alice Burgos, Founder of Burgos Law
Attorney Alice Burgos is an employment-based immigration attorney who focuses on H-1B visas, PERM labor certifications, E-2 investor visas, L-1 visas, and federal immigration litigation. She has prepared and overseen numerous H-1B petitions for U.S. employers across industries including technology, healthcare, finance, engineering, and professional services.
With deep knowledge of federal immigration policy and real-world business impact, she provides strategic, detail-oriented legal guidance to help employers hire and retain global talent with confidence.
