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On the heels of the $100,000 H-1B fee, USCIS just announced another major change to the H-1B program. Now, the random lottery, which has been a feature of the H-1B program for decades, will be replaced with a system that prioritizes higher-skill, higher-paid beneficiaries. This rule will apply to H-1B selections for FY 2027 (i.e. the lottery that will happen in March 2026). Both of these reforms are intended to prioritize the admission of highly skilled and highly paid workers.
Under the new process, all unique beneficiaries will be weighted in the lottery according to the highest applicable wage level for the offered position. The wage level is determined by the Occupational Employment and Wage Statistics (OEWS) program and is based upon the Standard Occupational Classification (SOC) code for the position. The wage level is used to ensure that beneficiaries are appropriately compensated according to their education and experience. Under the new system, a beneficiary whose petition is for wage level IV will be entered into the selection pool four times; a beneficiary whose petition is for wage level III will be entered into the selection pool three times, etc.
As it presently stands, each unique beneficiary has approximately a 29.59% chance of being selected in the H-1B lottery. Under the new system, it is predicted that beneficiaries receiving a Level I wage for their role will have a 15.29% chance of selection; Level II beneficiaries – 30.58%; Level III beneficiaries – 45.87%; and Level IV beneficiaries – 61.16%.
Advocates of this change argue that it will improve the integrity of the H-1B program by preventing companies from hiring low-wage workers who take opportunities away from U.S. workers. Opponents cite concerns that this rule will reduce diversity by negatively impacting smaller employers, smaller industries, rural regions, and entry-level employees.
Notably, this policy change does not impact institutions of higher education, nonprofit research organizations, and government research organizations, which are all exempt from the H-1B visa cap. For additional guidance on the new H-1B process, please reach out to our office today.
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