Jan 23, 2026

H-1B Wage-Based Selection Process: New Lottery Rules

Wage levels I-IV and their role in H-1B lottery selection.

Monique Delmer
Write by: Monique Delmer
Explore More Posts

The H-1B visa program is entering a transformative phase. Starting with the FY 2027 H-1B registration period in March 2026, the U.S. government will officially replace the random lottery with a Wage-Based Weighted Selection Process.

This change reshapes how H-1B visas are allocated, prioritizing higher wages and skill levels while still allowing opportunities across all wage tiers.

In short:

TL;DR

  • Starting with FY 2027, the H-1B cap selection process will no longer be fully random.
  • USCIS will use a wage-based weighted selection system tied to OEWS wage levels.
  • Higher wage levels receive more selection chances in the lottery.
  • Each beneficiary can only be selected once, even if multiple registrations are filed.
  • Entry-level (Wage Level I) positions remain eligible but have lower odds of selection.

What Is the H-1B Wage-Based Weighted Selection Process?

  • The Wage-Based Weighted Selection Process introduces a tiered lottery. It’s a new method USCIS will use to select H-1B cap-subject registrations.
  • Instead of giving every registration one equal chance, USCIS will now assign multiple lottery entries based on the offered wage level for the position.
  • The higher the wage level, the greater the odds of selection.

H-1B Lottery: Random vs Wage-Based Selection

H-1B LotteryOld Random LotteryNew Wage-Based Selection
Selection methodFully randomWeighted by offered wage level
Role of wagesNo impactHigher wages receive more entries
Multiple registrationsIncreased odds through volumeGrouped per individual; lowest wage applies
Entry-level rolesSame odds as senior rolesEligible, but lower selection odds
Anti-abuse controlsLimitedExplicit wage-based enforcement

Why the Random H-1B Lottery Was Replaced

🏛️ According to DHS (U.S. Department of Homeland Security):

“This final rule implements a weighted selection process that will generally favor the allocation of H-1B visas to higher-skilled and higher-paid foreign workers.”

As stated by DHS, the prior random selection process contributed to systemic abuse of the H-1B program. Under the old system, every properly filed registration - regardless of wage level or skill level - had the same chance of being selected. This structure created incentives for mass registrations, multiple filings for the same individual, and the pursuit of lower-wage positions to reduce employer costs.

DHS believes that wages are a reasonable proxy for skill and experience and that this reform better aligns the H-1B program with U.S. economic interests.


H-1B Wage Levels Explained (OEWS System)

The new system relies on OEWS (Occupational Employment and Wage Statistics) wage levels, set and updated annually by the Department of Labor (DOL).

H-1B Wage Levels and Lottery Weight

OEWS Wage LevelLottery EntriesDescription
Level IV4 entriesHighly experienced, specialized roles
Level III3 entriesAdvanced, experienced professionals
Level II2 entriesQualified professionals
Level I1 entryEntry-level positions

Step-by-Step: How the H-1B Weighted Lottery Works

1. U.S. Employer submits H-1B registration.

Under the new rule, U.S. employers must include the prevailing wage rate for the offered position during registration.

2. U.S. Employer selects the highest OEWS wage level.

U.S. Employers must select the highest OEWS wage level that the offered salary meets or exceeds for: the relevant SOC code, and the area(s) of intended employment. This wage level directly determines how much “weight” the registration receives in the selection process.

3. USCIS groups all registrations by unique beneficiary.

All registrations for the same individual are grouped together. Submitting more registrations does not increase the chance of selection.

4. The lowest wage level among all registrations for that beneficiary is assigned.

If multiple registrations exist, USCIS is expected to assign the lowest applicable wage level listed among them. For multi-location jobs, the lowest applicable wage level is used. If multiple employers file for the same worker, again, the lowest wage level applies.

5. The registration enters the lottery multiple times based on that wage level.

USCIS will now assign multiple lottery entries based on the offered wage level for the position. The higher the wage level, the greater the odds of selection.

6. USCIS conducts selection until the 85,000 visa cap is reached.

With 85,000 H-1B visas available annually (65,000 regular cap plus 20,000 for U.S. advanced degree holders), the selection pool will statistically favor applicants tied to higher wage offers.


How USCIS Will Decide: Multiple Registrations and Multiple Employers (Examples)

ExampleOutcomeDescription
Single Employer, High WageUSCIS assigns Wage Level IV - significantly higher chance of selection.Software Engineer in San Francisco, Wage Level: IV, Lottery entries: 4
Multiple Employers, Different WagesUSCIS assigns Wage Level I, and the beneficiary receives 1 lottery entry only.Employer A: Wage Level III and Employer B: Wage Level I
Multiple LocationsUSCIS assigns Wage Level II, the lowest applicable wage level.Job located in New York and Texas. Texas wage falls under Level II. New York wage qualifies for Level III

Addressing the Controversy

The new rule sparked significant public debate. Critics raised concerns that:

  • Wage levels may not accurately reflect skill across industries
  • Salary alone is not a perfect proxy for experience or value
  • Structural wage differences exist between regions and professions
  • Level IV wages do not always represent the “most skilled” workers

DHS acknowledged these concerns but ultimately concluded that salary is generally a reasonable and administrable proxy for skill level, especially when combined with existing labor protections and wage standards set by the Department of Labor.


FAQs: Wage-Based Weighted H-1B Selection Process

1. What wage system does USCIS use?

USCIS uses OEWS wage levels, set by the Department of Labor.

2. Can submitting multiple registrations increase chances?

No. USCIS groups all registrations per individual and assigns the lowest wage level. The new system cannot be gamed by filing multiple registrations or mixing wage levels.

3. Does this eliminate entry-level H-1B jobs?

No. Wage Level I roles remain eligible, but they have lower selection odds.

4. When does the new rule take effect?

It applies to the FY 2027 H-1B registration, beginning March 2026.

5. What is anti-abuse measures for a new system?

USCIS may deny or revoke an H-1B petition if it determines that a U.S. employer intentionally listed a higher wage level to improve lottery odds and subsequently filed a new or amended petition at a lower wage. Misrepresentations regarding full-time vs. part-time status, the number of work hours, or the offered salary can result in a petition denial or revocation, even after approval has been granted.

Final Takeaways

The Wage-Based Weighted Selection Process represents a fundamental shift in how H-1B visas are allocated:

  • The random lottery is replaced by a wage-weighted system.
  • Each beneficiary is counted only once.
  • Higher wage offers receive better odds of selection.
  • The lowest wage level controls when multiple registrations exist.
  • Enhanced enforcement measures are designed to deter misrepresentation and abuse.

DHS expects this reform to:

  • Increase the selection probability of higher-paid roles.
  • Change the distribution of selected beneficiaries by wage level.
  • Generate measurable economic impacts tied to higher earnings.

As the March 2026 registration period approaches, U.S. employers and foreign professionals alike will need to adjust strategies, compensation planning, and compliance practices to succeed in this new H-1B landscape. Implementation details remain subject to USCIS operational guidance and future policy updates, and U.S. employers should consult official USCIS instructions or qualified counsel before relying on wage-level strategy.