December 24, 2025
Executive Summary
The U.S. Department of Homeland Security (DHS) has issued a final regulation that would replace the current random H-1B cap lottery with a wage-weighted selection system tied to the Department of Labor’s four-level prevailing wage framework (OEWS). Under the new model, registrations associated with higher offered wages receive multiple entries into the selection pool, substantially increasing the odds of selection for higher-wage beneficiaries.
DHS intends for the rule to take effect in time for the FY 2027 H-1B cap season, with registration expected in March 2026. Court challenges remain possible and could affect timing or implementation.
What’s New: Wage-Weighted Selection Replaces Random Lottery
Historically, USCIS conducted a random computerized lottery whenever the number of H-1B cap registrations exceeded available visa numbers. DHS has finalized a system where selection is not purely random, but instead weighted based on the wage level associated with the offered salary for the role.
How the Wage-Weighted System Works
Each registration will be assigned multiple entries into the selection pool depending on the OEWS wage level that corresponds to the salary being offered for the occupation in the intended area of employment:
- Level 4 wage: 4 entries
- Level 3 wage: 3 entries
- Level 2 wage: 2 entries
- Level 1 wage: 1 entry
This creates a major probability shift. Level 4 candidates could have four times the selection odds of Level 1 candidates, assuming comparable cap demand.
Registration Requirements and Petition Filing Scrutiny
Employers will need to provide more wage-related detail during registration, including:
- the occupation code
- the intended area of employment
- the OEWS wage level tied to the offered wage
If selected, the employer’s H-1B petition must include documentation supporting the wage-level determination used at registration. DHS also states USCIS can deny or revoke cases if it finds the employer misstated the wage level to increase selection odds, or attempted to reduce the wage level after selection without a legitimate basis.
Key Technical Point: OEWS Level for Registration vs. Wage Level for the LCA
Employers should be aware of a critical distinction:
- Registration weighting is tied to the offered wage relative to OEWS thresholds.
- LCA wage levels are generally driven by the position’s minimum requirements, such as education and experience factors under DOL guidance.
Although these concepts overlap, they can diverge. Employers should plan for careful alignment between registration inputs, wage documentation, and downstream petition support.
Special Scenarios
Multiple work locations
If a beneficiary will work at multiple sites, DHS indicates employers may need to use the lowest corresponding wage level tied to the position across intended locations.
Multiple employers registering the same beneficiary
If more than one employer submits a registration for the same individual, DHS’s approach may place the beneficiary into the pool based on the registration associated with the lowest wage level. This is intended to reduce strategic multiple filings aimed at maximizing selection odds through wage manipulation.
Effective Date and Likelihood of Litigation
The rule is expected to take effect 60 days after publication and is intended to apply to the FY 2027 registration cycle. Because the change affects a heavily litigated area of employment-based immigration policy, legal challenges are possible and could affect timing or implementation.
The final rule has drawn significant attention from employers, the business community, and the immigration bar due to its likely impact on entry-level hiring pipelines and U.S. graduate recruitment.
G&A Managing Partner Vic Goel was interviewed by Forbes regarding the impact of a wage-weighted system on employers and workforce planning. The Forbes coverage highlights that the rule could shift selection outcomes away from lower-wage and entry-level candidates and increase compliance and documentation expectations for companies sponsoring cap cases.
For reference, the Forbes article is available at:
https://www.forbes.com/sites/stuartanderson/2025/12/23/dhs-finalizes-controversial-immigration-rule-on-h-1b-lottery/
What This Means for Employers
Reduced odds for entry-level candidates
Level 1 wages, often associated with junior roles and newly graduated candidates, will have the lowest selection weighting and may see reduced selection rates.
Compensation planning becomes part of cap strategy
Employers may consider higher offered wages to strengthen selection odds, but this raises broader compensation and internal equity considerations.
Earlier planning will be essential
Companies will need to finalize job details and wage-level positioning well before the registration window, because wage level will now be tied directly to selection probability.
Recommended Employer Action Steps
Goel & Anderson recommends that employers begin preparing immediately:
- Identify likely FY 2027 cap candidates now, including anticipated hires through summer and fall 2026.
- Conduct early wage-level mapping by occupation and location to avoid last-minute wage surprises.
- Review multi-location work models and assess wage-level implications for hybrid or traveling roles.
- Coordinate internal stakeholders early, including Recruiting, HR, Compensation, and Finance.
- Prepare documentation frameworks supporting wage level determinations to reduce RFE and revocation exposure.
- Monitor agency guidance and litigation developments in early 2026.
How Goel & Anderson Can Help
Our team assists employers with:
- FY 2027 cap forecasting and wage-level risk assessments
- compensation-driven selection modeling
- multi-location strategy planning
- petition documentation alignment and compliance readiness
- responding to USCIS questions related to wage-level selection
Please contact your Goel & Anderson attorney to begin planning for FY 2027 cap registration.
Disclaimer
This alert is provided for general informational purposes and does not constitute legal advice. Employers should consult counsel regarding their specific workforce needs and compliance obligations.
