USCIS Adopts Weighted H-1B Lottery To Favor Higher Wages

January 5, 2026

What's New

USCIS has finalized a rule replacing the random H-1B lottery with a weighted selection process effective for the upcoming FY 2027 H-1B season. The rule, published December 29, 2025, takes effect February 27, 2026. Under the new system, lottery registrants will receive multiple entries based on the wage level being offered to the H-1B candidate: Level IV lottery registrants get four lottery entries, Level III get three entries, Level II get two entries, and Level I get one entry. The new rule prioritizes higher-paid, higher-skilled workers in the H-1B lottery while preserving some access for all wage levels.

What It Means

Employers that offer higher wages to H-1B candidates will significantly improve their odds of selection. While the rule does not mandate wage increases, it creates a strong incentive to raise salaries for H-1B candidates. USCIS intends for this change to reduce abuse of the lottery system and better protect U.S. workers’ wages and job opportunities.

What You Should Do

Employers should review compensation strategies for H-1B roles ahead of the FY 2027 registration season that begins in March 2026 and consider whether adjustments are warranted to remain competitive. Employers should also ensure accurate wage-level reporting during registration, as multiple submissions for the same beneficiary will default to the lowest wage level offered.

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