Compliance Toolkit
FY2027 H-1B Lottery Shifts to a Weighted System That Favors Higher-Paid Roles
THE PENG LAW GROUP · EMPLOYER IMMIGRATION BRIEF

FY2027 H-1B Lottery Shifts to a Weighted System That Favors Higher-Paid Roles

Compliance Toolkit

The bottom line for employers: the upcoming FY2027 H-1B cap season is the first run entirely under DHS's weighted selection rule, finalized on December 29, 2025.1 Under this system, a registration's odds of selection now depend heavily on the offered wage level. If your workforce plan relies on entry-level or Level I roles, your selection chances are meaningfully lower than under the old random draw — and you should adjust hiring and compensation strategy before registration opens.

What Changed and Why It Matters

Previously, every properly submitted registration had an equal chance in a purely random lottery. Now, each registration is assigned entries based on the wage level the employer offers relative to the prevailing wage for that occupation and location. Higher wage levels receive more entries, increasing their probability of selection.2 In practical terms, a Level IV role carries the strongest odds and a Level I role the weakest.

Because the weighting rests on wage data, employers must now supply more information at the registration stage — including the wage level, the SOC occupation code, and the intended work locations. The location matters because prevailing wages vary by geography, so the same salary can be Level I in one metro area and Level III in another. Accuracy here is not optional: mismatches between the registration data and the later Form I-129 petition create fraud and misrepresentation risk.

Who Is Affected

Companies hiring recent graduates, early-career engineers, and other entry-level specialty workers are most exposed, since these roles typically sit at Level I or II. Employers of experienced, senior, or highly compensated talent are advantaged. The change does not alter the annual caps — 65,000 regular plus 20,000 for U.S. advanced-degree holders — nor the $215 registration fee per beneficiary.3 It only changes who is more likely to be picked.

Employer Action Items

  • Identify each intended H-1B role's SOC code, work location, and wage level now, and review where each falls against the current prevailing wage.
  • Consider whether budget allows raising offered wages to a higher level to improve selection odds for priority candidates.
  • Ensure registration data will match the eventual Form I-129 petition to avoid misrepresentation exposure.
  • Build alternative visa or timing contingencies for entry-level candidates whose lower wage levels reduce their selection chances.
  • Coordinate with immigration counsel early to confirm wage-level assignments before the registration window opens.

This newsletter is for general informational purposes only and does not constitute legal advice. Attorney advertising. © The Peng Law Group.