On December 23, 2025, U.S. Citizenship and Immigration Services (USCIS) announced a final rule that would significantly change how the agency selects registrations for H-1B cap-subject petitions. The final rule is effective February 27, 2026, and will replace the current purely random lottery system with a weighted selection process that gives higher odds to beneficiaries offered higher wages.
Historically, registrants were selected at random. Under the newly proposed system, registrations will be weighted based on the anticipated wage level of the registrant. The Occupational Employment and Wage (OWES) levels dictate the minimum salary required based on experience, responsibilities, and skill level. A Level I wage would have a single entry while a Level IV wage would have four entries. The goal of this new weighted system is to ensure H-1Bs are going to highly skilled individuals and that companies are not undercutting the wages of American workers.
This change will require employers to verify wage levels during the registration phase, rather than during the filing phase. Petitioners will need to take into consideration the future role and the geographic location. They will also need to thoroughly analyze the beneficiary’s qualifications before selecting the wage level. The new system would likely favor larger corporate employers who are able to pay higher wages than smaller employers. Employers in less-populated areas may find it easier to offer Level IV wages than employers in populated areas. The new rule will be effective before the upcoming H-1B lottery.
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