Call Us Now
Email Us Now
The U.S. Department of Homeland Security (DHS) has issued a final rule that significantly restructures the H-1B cap selection system, effective February 27, 2026. This rule replaces the purely random lottery with a wage-weighted selection process, fundamentally changing how H-1B registrations are evaluated.
This development marks one of the most consequential shifts in the H-1B program in decades. Employers must now approach H-1B cap filings with strategic precision, wage analysis, and regulatory alignment.
Overview of the H-1B Cap System
The H-1B program permits U.S. employers to temporarily employ foreign professionals in specialty occupations, which require:
- Theoretical and practical application of highly specialized knowledge; and
- A bachelor’s degree or higher in the specific specialty (or equivalent).
Congress sets an annual numerical limit of:
- 65,000 regular cap visas, and
- 20,000 additional visas for individuals holding qualifying U.S. master’s or higher degrees.
In years of high demand, U.S. Citizenship and Immigration Services (USCIS) has historically used a random lottery selection system. Beginning in FY 2021, DHS implemented an electronic registration system. In February 2024, DHS adopted a beneficiary-centric selection process, ensuring each individual beneficiary has an equal chance of selection regardless of multiple registrations. The 2026 rule builds upon that system — but adds a critical new layer: wage-based weighting.
What Is the New Weighted Selection Process?
When USCIS receives more registrations than needed to meet the annual cap, it will now conduct a weighted selection among unique beneficiaries.
Each registration will be assigned an Occupational Employment and Wage Statistics (OEWS) wage level based on the offered wage for the relevant SOC code and geographic location. The weight assigned is as follows:
- Wage Level IV → 4 entries
- Wage Level III → 3 entries
- Wage Level II → 2 entries
- Wage Level I → 1 entry
The higher the wage level, the greater the number of entries in the selection pool — and therefore the higher the probability of selection.
Importantly, each beneficiary is selected only once, even if multiple registrations were submitted.
Key Registration Requirements
1. Wage Level Selection
At registration, employers must select the highest OEWS wage level that the offered wage equals or exceeds for:
- The appropriate SOC code
- The geographic area of intended employment
If the offered wage is presented as a range, the lowest wage in the range controls the wage level selection.
If a non-OEWS wage source is used and the offered wage falls below OEWS Level I, the registrant must select Level I.
Accuracy at this stage is critical. Misrepresentation or inconsistent wage information can lead to denial or revocation.
2. SOC Code and Geographic Area Disclosure
Employers must:
- Identify the correct SOC code
- Specify the area of intended employment
- Select the corresponding OEWS wage level
The electronic system allows only one location for registration.
If the beneficiary will work at multiple locations, the employer must select the lowest applicable OEWS wage level among all locations and list the location tied to that lowest wage level.
This prevents artificial inflation of wage levels to increase selection chances.
3. Multiple Registrations for the Same Beneficiary
If multiple employers submit registrations for the same beneficiary:
- USCIS will assign the beneficiary the lowest wage level among all submitted registrations.
For example:
- One registration at Level IV
- One registration at Level I
The beneficiary will be assigned Level I for weighting purposes.
This rule is designed to deter wage manipulation across related entities.
Petition Stage Requirements After Selection
If selected, the H-1B petition must:
- Contain the same identifying information as the registration
- Use the same SOC code
- Offer a wage equal to or exceeding the wage level indicated at registration
Changes in work location may be permitted if consistent with a bona fide job offer existing at the time of registration, and if the wage still meets the equivalent OEWS wage level.
USCIS will evaluate the totality of circumstances when reviewing changes.
Enforcement & Anti-Manipulation Safeguards
The new rule grants USCIS expanded authority to:
- Deny petitions filed to unfairly increase selection chances
- Deny or revoke approved petitions if manipulation is later discovered
- Scrutinize related entities (including parent companies, affiliates, or businesses with overlapping ownership, leadership, or documentation)
Lowering the wage after selection, changing to a location that corresponds to a lower wage tier, or filing through related entities to boost odds may result in denial or revocation.
The compliance risk is real — even post-approval.
What Employers Should Do Now
The H-1B cap process is no longer just a lottery — it is a compliance-driven, data-validated selection system.
Employers should:
- Conduct early wage analysis using DOL OEWS data
- Confirm accurate SOC code classification
- Review all potential work locations
- Ensure internal consistency between registration, LCA, and petition
- Avoid artificial wage structuring or location strategies
Strategic preparation is now essential.
Strategic Takeaway
Effective February 27, 2026, H-1B selection will reward:
- Higher wage levels
- Accurate occupational classification
- Consistent documentation
- Bona fide job offers
While the system remains beneficiary-centric, wage-based weighting directly affects selection probability.
Employers who proactively align their wage structure, documentation, and compliance strategy will be best positioned for success in this evolving regulatory environment.
If you have questions about how the weighted H-1B selection process may affect your organization or future H-1B filings, our team at SwagatUSA, LLC is available to assist with strategic planning and compliance analysis.
For case-specific guidance, please contact our office to schedule a consultation.
