Major Change in the H-1B Lottery Selection System Announced
The U.S. Citizenship and Immigration Services (USCIS) has announced a significant update to the selection process for cap-subject H-1B visas. These changes will take effect on February 27, 2026, and will apply to the annual H-1B lottery scheduled for March 2026.
What is the H-1B visa?
The H-1B is a temporary visa classification for individuals seeking employment in the U.S. in a specialty occupation or as a fashion model of distinguished merit and ability. A specialty occupation typically requires at least a bachelor’s degree in a specialized field. Examples include jobs in:
- Information technology and computer science
- Architecture and engineering
- Mathematics and physical sciences
- Social sciences, medicine, and health
- Education, business specialties, accounting, law, theology, and the arts
Employers must also ensure that hiring H-1B workers does not negatively impact wages or working conditions of U.S. workers in similar roles. They are required to pay at least the prevailing wage for the occupation in the relevant geographic area.
Why do H-1Bs go into a lottery?
Current law limits the number of new H-1B visas issued each fiscal year to:
- 65,000 for individuals with a bachelor’s degree from an accredited college or university in any country; and
- 20,000 additional visas for those with a master’s or Ph.D. from an accredited public or non-profit college or university in the U.S.
Demand exceeds supply. After many years in which USCIS reached the cap within the first week of the filing period, the agency began using a computer-generated lottery to randomly select which cases get processed.
How does the H-1B lottery work?
USCIS typically opens a two-week registration period in March. Employers must register each candidate during this window, providing basic information about the company, such as company name, address, FEIN, and contact information, and a number of details regarding the intended employee, such as:
- Name
- Date of birth
- Country of origin
- Passport number
A valid passport is required for registration. At the end of the registration period, USCIS runs an automated, computer-generated lottery to select enough registrations that would fill the H-1B cap. Historically, the lottery was random, but starting in March 2026, USCIS will implement a weighted selection system favoring higher-paid and higher-skilled positions.
How will the H-1B lottery work in March 2026?
During registration, employers will still need to provide details regarding the employee(s) just as before, but they will need to enter additional details, including:
- Occupation classification code
- Offered wage
USCIS will use this information to assign a wage level based on Department of Labor guidelines, which define four levels, Level I through Level IV. A Wage Level I generally denotes an entry-level position that requires little-to-no experience, while a Level IV wage generally implies a senior position requiring considerable skill and several years of experience.
Based on the new system, each candidate will be assigned one or multiple entries into the lottery, depending on the wage level assigned for the job opportunity. Lottery entries will be weighted as follows:
- Wage Level I: 1 entry
- Wage Level II: 2 entries
- Wage Level III: 3 entries
- Wage Level IV: 4 entries
This means higher-level positions will have a greater chance of selection. Importantly, the wage level must align with the actual job requirements.
Is there a fee for the H-1B registration?
Yes, the H-1B lottery registration fee is $215, payable by employers for each beneficiary employee they wish to register. If a beneficiary is selected, the employer must proceed to submit the H-1B petition on the merits, which will include additional government fees calculated depending on the company size, employer type (for-profit or non-profit), and other factors.
What happens if I get selected in the H-1B lottery?
If selected, the employer can file the H-1B petition for USCIS review. Approval depends on meeting all eligibility criteria, including whether the job qualifies as a specialty occupation and whether the candidate meets requirements.
What happens if I do not get selected in the H-1B lottery?
Employers/employees not selected in the H-1B lottery will not be eligible to submit petitions for consideration on the merits for the upcoming fiscal year, at least not for the annual cap. However, eligible employers can still pursue cap-exempt H-1B petitions if they qualify under one of the exemptions from the H-1B lottery.
Not all H-1B petitions are subject to the numerical cap
Individuals who already have H-1B status and who are seeking to extend or amend their existing status, or transfer to a new employer, are not counted against the cap unless they have already spent six years in H-1B status in the aggregate. In addition, H-1B petitions filed by an employer that is an public or non-profit institution of higher education, a non-profit entity related or affiliated with an institution of higher education, a non-profit research organization or government research organization, among others, are also generally not counted against the cap and do not have to go through the H-1B lottery. These employers may qualify to petition for H-1B status any time of the year, without having to go through the H-1B lottery.
Need Guidance?
If you are seeking H-1B clarification for the upcoming fiscal year, or if you have any other immigration-related question, contact Attorney Raluca (Luca) Vais-Ottosen at rvo@dewittllp.com or (608) 252-9291.