New England Biz Law Update
The Department of Homeland Security has issued a final rule fundamentally changing how H-1B cap-subject visas are selected.
The rule, finalized on December 23, 2025, and scheduled to take effect February 27, 2026, replaces the long-standing random lottery with a weighted selection process that prioritizes beneficiaries based on wage level, giving a higher chance of selection to foreign workers offered higher wages by petitioning employers.
Under the new system, which will apply beginning with the Fiscal Year 2027 H-1B cap registration season, employers will still submit registrations for prospective beneficiaries, but the probability of selection will generally increase for petitions tied to higher wage levels as defined by prevailing wage data.
DHS stated that the change is intended to better align the selection process with Congressional intent to allocate visas to higher-skilled, higher-paid workers and to reduce perceived abuses of the random system.
The final rule was published in the Federal Register in late December and takes effect 60 days after publication, with operational preparations already underway within U.S. Citizenship and Immigration Services.
Employers must provide accurate wage and job data during registration to ensure proper weighting under the new framework.
For employers relying on H-1B talent, the shift marks one of the most significant changes to the program in years.
The weighted system may increase the odds of selection for positions offering higher compensation, which may influence employers’ wage planning, job classification decisions, and timelines for registering H-1B beneficiaries.
Employers should assess their H-1B petition strategies now to align with the new selection criteria and ensure compliance with wage documentation requirements.
