H-1B Lottery Overhaul: What Employers Need to Know About the New Wage-Based System
The H-1B lottery has always been a source of uncertainty. Every year, employers prepare registrations and hope that the odds break their way. Until now, the system has been a simple draw: one chance per beneficiary, regardless of the job, the salary, or the location.
The Department of Homeland Security (DHS) is proposing to change that. Under the new proposed rule that is set to be published tomorrow, the number of chances in the lottery will be weighted according to the wage level of the job offered.
Under rulemaking procedures, a proposed rule is only a draft of what DHS plans to do and will be open for public comment. A final rule will come after that process, be legally binding, and include an effective date. The broad idea often stays the same, but details can shift before the final version takes effect.
For employers, even if the final rule looks somewhat different, it will still shift the focus from just filing on time to carefully structuring offers, documenting truthfully, and ensuring consistency from registration through petition approval. Those who fail to adapt risk petition denials, wasted filing fees, and lost opportunities for key talent.
From Random to Weighted
Each registrant will still only be entered once, but the draw will no longer treat every registration equally. A Level IV position will carry four entries, Level III will carry three, Level II will carry two, and Level I will carry one. This is the core of the DHS H-1B proposed rule: weighting chances based on prevailing wage levels.
That means the more competitive the wage offer relative to Department of Labor data, the greater the statistical chance of selection. For employers, this creates both an opportunity and a responsibility. Higher wage offers improve odds, but only if they are genuine, sustainable, and documented with care.
Why This Matters to Employers
The rule aims to accomplish two things. First, it discourages the gamesmanship that some employers used to tilt the scales by submitting multiple registrations under related entities. Second, it directs visas toward jobs that the government considers to be of greater economic value, measured by prevailing wage levels.
This puts employers under the spotlight in a new way because the H-1B wage lottery now directly ties selection odds to prevailing wage levels and the DHS H-1B proposed rule gives USCIS broader authority to check for consistency.
Registrations are no longer just entries in a random draw. They must reflect job offers that are supportable, and they must align with the evidence that will be submitted later with the H-1B petition. Employers who treat registration as the first step of a complete filing process will put themselves in the best position to succeed, while those who gamble with incomplete or inconsistent filings face heightened scrutiny and denial.
Guardrails That Cannot Be Ignored
The proposal comes with clear compliance obligations. When an employer registers an employee or a candidate, it must provide the job classification, the area of intended employment, and the prevailing wage level that its job offer meets. That choice locks in.
If the employer later attempts to file an amended petition that moves that beneficiary into a lower wage level or into a different location that undermines the registration, USCIS can deny the petition. If it appears that the registration was made at one level purely to increase odds but the real position was meant to be different, the agency will likely treat that as gaming the system.
For example, an employer registering a software engineer as a Level IV wage position in Tulsa, Oklahoma, where prevailing wages are comparatively low, might later want to transfer the worker to San Francisco. In San Francisco, the same salary may only qualify as Level II wage. Under the proposed rule, such a mismatch would raise concerns. The safest approach is to ensure that the H-1B registration reflects the actual intended position and location from the start. That alignment with prevailing wage levels will be critical under the H-1B wage lottery framework.
A Note to Beneficiaries
For workers, this proposal may feel like a shift of control further into the employer's hands. The odds will depend on how their job offer is structured and what their employer certifies during registration. A Level II wage position in San Francisco may still leave them with fewer chances than a Level IV wage in Tulsa, even if their salary is objectively higher.
The good news is that the lottery remains open to all levels. What matters most is that the employer is clear and consistent about the job being offered, and that the registration matches what will later be filed in the petition.
Questions Beneficiaries Are Asking
If my employer registers me at one wage level, can they
later change it to a different one?
Not if it reduces the level. USCIS wants to see consistency between
what is registered and what is filed. Adjustments downward will be
viewed as gaming the system and could put the petition at risk.
Could employers in lower cost cities become more
attractive to H-1B candidates?
Yes, at least from the perspective of lottery odds. A Level IV wage
position in Tulsa may carry better odds than a Level II wage
position in San Francisco. The practical question is whether
candidates want to build their careers in those markets.
How does this affect international students on OPT who
are trying to transition into H-1B?
Many students start with Level I or Level II wages. This proposal
does not remove them from the lottery, but it does mean their
chances are slimmer than those with higher levels. That makes STEM
OPT extensions and careful career planning even more important.
What if my job offer involves multiple worksites or
future relocation?
If your position spans more than one location, the registration
must be based on the highest applicable prevailing wage among those
worksites. For example, if the role involves time in both Tulsa and
San Francisco, the San Francisco wage level governs, since it is
the higher of the two. If your employer later moves you to a new
metropolitan area, they may need to file an amended petition. USCIS
will examine whether the relocation matches the original job offer
or appears to reduce the wage level after selection. This makes it
important for employers to register with the most demanding
location in mind, rather than treating a lower-wage city as the
default.
Does the new rule eliminate all forms of
gamesmanship?
Not entirely. Some may still try to tilt the scales, but they risk
jeopardizing their future ability to file H-1B petitions if found
to have violated the rules. The difference now is that USCIS has
clearer authority to check for consistency between the registration
and the petition. Employers who prepare carefully, document
thoroughly, and register in good faith will avoid problems and give
their candidates the best possible chance.
The Bottom Line for Employers
The H-1B wage proposal is not simply a change in math. It represents a shift in responsibility. Employers must approach registration as an extension of the petition itself. Job classification, wage level, and work location must be accurate and consistent from the beginning.
Those who prepare carefully and provide the evidence to substantiate their assertions will maximize their likelihood of success and avoid unwelcome surprises later. Those who treat registration as a strategic gamble rather than a truthful representation risk wasted effort and diminished credibility with the agency.
The New H-1B Lottery Proposal: What Employers Need To Know
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.
