USCIS Completes FY 2027 H-1B Cap Lottery with New Wage-Based Selection System

U.S. Citizenship and Immigration Services (USCIS) has announced a major change to the H-1B cap selection process. Under a final rule issued on December 29, 2025, USCIS will replace the long-standing random H-1B lottery with a wage-weighted selection system that favors higher-paid and more complex positions. The rule is scheduled to take effect on February 27, 2026 , just ahead of the fiscal year 2027 H-1B cap registration season, unless delayed by legal challenges. If implemented, USCIS is expected to release additional guidance explaining how employers must submit registrations under the revised process. This change marks one of the most significant reforms to the H-1B program in recent years. Up until 2025, all registrations were treated equally once the annual cap was reached. Under the new system, selection odds will be tied to wage levels based on the U.S. Department of Labor’s Occupational Employment and Wage Statistics data. All H-1B registrations will still be placed into a single selection pool, but registrations tied to higher wage levels will receive multiple entries into that pool, increasing their likelihood of selection. Lower wage levels will receive fewer entries, making selection less likely but not impossible. H-1B wage levels are not determined solely by salary. Each wage level reflects the complexity of the job, the level of responsibility involved, and the education and experience required . Entry-level positions involving routine duties and close supervision are generally classified at the lowest wage level, while positions requiring independent judgment, advanced skills, and significant responsibility fall into higher wage levels. The highest wage level is reserved for roles that involve expert knowledge, strategic decision-making, and substantial leadership or technical authority. USCIS is expected to closely scrutinize selected petitions to ensure that the wage level claimed during registration is supported by the job duties and salary offered in the petition. Any discrepancies between the registration and the petition may result in requests for evidence, denials, or enforcement action. With the elimination of the purely random lottery, employers should begin preparing early by carefully evaluating job descriptions, wage levels, and overall H-1B strategy. Accurate classification and thoughtful planning will be essential under this new wage-based selection system. If you are an employer considering H-1B sponsorship, or a foreign professional wondering whether your position may qualify under the new wage-based system, consulting with experienced immigration counsel is more important than ever. Santos Lloyd Law is actively advising clients on H-1B cap registrations and strategy under the new rules. To discuss your options or determine whether you may qualify, contact our office to schedule a consultation.

A key development occurred in December 2024, when the deference policy was officially written into regulation (the “H-1B modernization rule”), set to take effect on January 17, 2025. Once it takes effect, USCIS adjudicators must apply the deference policy to extension requests involving the same employer, the same employee, and the same job details. USCIS can still decide not to defer to the previous approval if: There was a material error in the earlier approval. There has been a material change in circumstances or eligibility. New information raises doubts about eligibility. Even in these situations, officers must explain why they are not deferring. Importantly, USCIS does not have to defer to decisions made by other agencies, such as the U.S. Department of State or Customs and Border Protection. By turning the deference policy into a regulation, it becomes more difficult for future administrations to eliminate it quickly. Any attempt to rescind or change the policy now requires a lengthy rulemaking process that includes a public notice-and-comment period. Key Takeaways for Employers Greater Predictability: The deference policy, now a regulation, gives employers more certainty that extension petitions will be approved if there are no major changes in the employee’s role or the employer’s situation. Potential Changes Ahead: A future administration could still try to rescind this rule, but they must follow a formal regulatory process, which takes time and offers employers some warning. File Extensions Early: Employers can submit extension petitions up to six months before a visa expires. Filing early can help avoid unexpected policy shifts and minimize risks of RFEs or denials. Overall, the codification of the deference policy is a significant step that offers much-needed stability and efficiency in the U.S. immigration process. By planning ahead and staying informed, employers can take advantage of this improved predictability. As always, working closely with an immigration attorney ensures that extension applications are accurate, well-prepared, and filed promptly—especially during times when policy may evolve.

The U.S. Citizenship and Immigration Services (USCIS) has recently announced a significant enhancement to its customer experience with the upcoming launch of organizational accounts for H-1B cap season. These measures, set to debut in February 2024 , aim to boost efficiency and foster collaboration among organizations, legal representatives, and USCIS. One of the key features of this improvement is the introduction of organizational accounts for non-cap filings and the fiscal year (FY) 2025 H-1B cap season. This innovation allows multiple individuals within an organization and their legal representatives to collaborate seamlessly on H-1B registrations, Form I-129 (Petition for a Nonimmigrant Worker), and associated Form I-907 (Request for Premium Processing Service). The introduction of organizational accounts marks a transition to a fully electronic H-1B lifecycle, covering registration, petition preparation, decision-making, and transmission to the Department of State. USCIS expects to launch organizational accounts in February 2024, with the online filing of Forms I-129 and I-907 following shortly thereafter. This shift to electronic filing is anticipated to streamline the H-1B petition process, reducing common errors and eliminating duplicate H-1B registrations. Further, as part of USCIS's broader efforts to enhance efficiency and standardize processes, the paper filing location for Forms I-129 and I-907 will transition from service centers to the USCIS lockbox. This move aims to reduce costs while maintaining a more streamlined and standardized approach to handling H-1B petitions. With these customer experience improvements, USCIS is taking a significant stride towards modernizing and streamlining the H-1B petition process. As we approach the FY 2025 H-1B registration period, Santos Lloyd Law Firm is closely monitoring the evolving landscape of H-1B changes and actively engaging in upcoming sessions to maximize the benefits of these improvements.