The U.S. Department of Homeland Security (DHS) has made changes to how it awards the H-1B visa. The department is replacing the random lottery for selecting visa recipients with a wage-weighted selection process.
This finalized rule, which takes effect on February 27, 2026, substantially favors higher-skilled and higher-paid aliens. Here is what to know:
Wage levels
With the new process, applications are categorized using Occupational Employment and Wage Statistics (OEWS) wage levels (I-IV), provided by the Department of Labor (DOL). Instead of a registration having a single chance in the lottery, the new system allows multiple entries. Level IV has four entries, Level III has three entries, Level II has two entries and Level I has one 1 entry in the lottery.
For instance, if an employer has a job with a Level IV salary, they get four entries in the H-1B lottery pool. Basically, employers offering higher wages have more lottery “tickets.” Thus, applications of higher-paid, more experienced or senior-level positions have more chances of being awarded the H1-B visa than entry-level ones.
Employers are required to include the accurate OEWS wage level during the initial registration. When an application is selected, the wage level included in the registration must be proven; otherwise, it can be denied.
Fees
A new $100,000 fee has also been implemented. Employers will be required to pay this fee per visa as a condition for eligibility. Consequently, it can be more costly for businesses, especially small ones, to sponsor foreign workers.
Companies seeking entry-level talent, such as recent international graduates from U.S. universities, foreign workers applying to entry-level jobs and early-stage startups with limited budgets, can be significantly affected by the new system. If you fall under any of these categories, it’s critical to learn more about the weighted selection process to make informed decisions.