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On December 29, 2025, the Department of Homeland Security (DHS) published a Weighted Selection Process for Registrants and Petitioners Seeking to File Cap-Subject H-1B Petitions in the Federal Register. These changes will favor the selection of higher-skilled and higher-paid workers in the annual H-1B lottery and will be effective prior to the 2026 H-1B lottery, the registration period for which is expected to open in March 2026. While this new prioritization may be challenged in court, DHS is in the process of amending the H-1B regulations to reflect these changes. Employers should prepare for the changes to take effect in the upcoming 2026 H-1B lottery.
The Changes:
Historically, the selection process in the annual H-1B lottery was random. An employer would register its current or prospective employee in the regular H-1B CAP, which has a 65,000 annual quota. If the H-1B registrant was not selected for the regular H-1B CAP, and the H-1B registrant held a U.S. advanced degree, that registrant would automatically be entered into the Master's H-1B CAP, which has a 20,000 annual quota.
Under the new rules, starting in the upcoming 2026 H-1B lottery (for FY 2027), each H-1B registrant will receive a number of lottery entries, for random selection, based on the applicable wage level of their offered salary. For example, an H-1B registrant with an offered salary at wage level II for the specific U.S. Department of Labor occupational classification that corresponds with their employment will be entered into the lottery for possible selection twice. There is a maximum of four wage levels for each Department of Labor occupational classification. If an H-1B registrant will work in multiple locations and the offered salary falls at different wage levels in the different locations, the H-1B registrant must select the lowest applicable wage level corresponding to the offered salary. Note, however, that each registrant will be counted only once for purposes of filling the relevant H-1B CAP quota.
The U.S. Department of Labor wage levels vary by occupational classification and the geographic region of the worksite(s). They can be searched here. Wage level I typically corresponds to entry-level positions and thus, entry-level salaries. Wage levels II, III and IV correspond to higher-level positions that require progressively more professional experience. Due to the changes, employers should consider how the offered H-1B employment and corresponding salary will impact the likelihood of selection in the H-1B lottery.
The table below shows DHS's estimated probabilities of being selected in the H-1B CAP-subject lottery by wage level. Although it impacts the accuracy of these estimates, DHS has lumped both the regular and Master's H-1B CAPS together for this analysis. We include this table to illustrate that H-1B registrants with offered salaries at wage level I are less likely to be selected under these changes, while those with offered salaries at wage level IV are twice as likely to be selected. The actual probabilities of selection in the 2026 H-1B lottery (for FY 2027) will depend on other factors, such as the total number of registrants. This total may be affected by other recent policy changes to the H-1B visa program, such as the $100,000 fee requirement (information about which is here).
Table taken from the full DHS Federal register.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
