The United States 🇺🇸 is moving toward a major change in how H-1B work visas are given out. The Department of Homeland Security (DHS) has proposed a new rule that would replace the current random H-1B lottery with a pay-scale, or wage-based, selection system. This update will affect thousands of employers, international students, and skilled workers hoping to work in the United States 🇺🇸. Here’s a detailed look at what’s changing, who will be affected, when these changes might take effect, what actions are needed, and what this means for pending and future H-1B applications.
Summary of What Changed

The biggest change is the move from a random H-1B lottery to a system that picks applicants based on the wage offered for their job. Instead of treating all applications the same, the new system will give priority to jobs that pay more, using a four-level wage scale set by the Department of Labor. This means that people offered higher salaries for their job type and location will have a better chance of getting an H-1B visa.
Who Is Affected
- Employers: Any company or organization that wants to sponsor an H-1B worker will need to understand and possibly adjust their pay offers.
- International Students and Entry-Level Workers: Those who just graduated and are starting their careers, especially on Level 1 or Level 2 wages, will face much tougher odds.
- Small Businesses and Startups: Employers in smaller cities or with limited budgets may find it harder to compete with large companies in big cities.
- Workers in Lower-Paying Regions: Jobs outside major metro areas, where salaries are usually lower, will be at a disadvantage.
- Current H-1B Applicants: Anyone with a pending application under the old lottery system should know that the new rules will not affect them until the new system is officially in place.
Effective Dates
- The proposed rule was submitted for federal review on July 17, 2025.
- It is currently under review and has not yet been published as a final rule in the Federal Register.
- The new system is expected to take effect for the Fiscal Year (FY) 2027 H-1B cap season and beyond.
- For FY 2026, the current random lottery system will still be used.
Required Actions
For employers:
– Review and possibly increase wage offers for H-1B candidates to improve selection chances.
– Benchmark offered wages against the Department of Labor’s Occupational Employment Statistics (OES) wage levels.
– Prepare to document and justify wage levels in H-1B petitions.
– Monitor official updates from USCIS and DHS for the final rule and implementation details.
For applicants:
– Understand your offered wage level and how it affects your chances.
– If you are a recent graduate or entry-level worker, discuss with your employer whether your wage can be raised to a higher level.
– Stay updated on the rule’s progress and consult with your employer or an immigration attorney for guidance.
For pending applications:
– If you have already applied under the current lottery, your application will be processed under the old rules.
– If you plan to apply in the future, be prepared for the new wage-based system.
How the New Wage-Based H-1B Selection System Works
The new system uses a four-level wage scale:
- Level 1: Entry-level wage for workers with basic skills and little experience.
- Level 2: Wage for workers with some experience or special skills.
- Level 3: Wage for experienced workers or those with advanced skills.
- Level 4: Highest wage for very experienced or specialized workers.
Selection Process:
1. Priority by Wage Level: H-1B petitions offering Level 4 wages are picked first, then Level 3, Level 2, and finally Level 1, until the annual cap is reached.
2. Lottery Within Wage Levels: If there are more applications at a wage level than visas available, a lottery is held within that level.
3. Salary Reflects Location and Industry: Wages are higher in big cities like San Francisco or New York, so jobs in those places have an advantage.
Annual Cap: There are 85,000 H-1B visas available each year, including 20,000 reserved for people with advanced degrees from U.S. schools.
Background and Historical Context
The idea of a wage-based H-1B lottery isn’t new. It was first suggested during President Trump’s administration but was stopped after legal challenges and a court decision in 2021. The Biden administration withdrew the earlier rule, but now DHS is bringing back and expanding the idea. The goal is to make sure H-1B visas go to the “best and brightest” workers and to protect U.S. workers by raising wage standards.
The current system, as of 2024, uses a “beneficiary-centric” approach, which means each person can only be entered once, but the selection is still random. The new proposal would change this by ranking applicants based on their wage level.
Key Stakeholders and Perspectives
Supporters (including some government officials and large employers) believe the new system will:
– Raise wages for foreign workers.
– Reduce abuse of the H-1B program for low-wage jobs.
– Make sure visas go to highly skilled workers in important roles.
– Protect U.S. workers by making it harder to use H-1B visas for cheap labor.
Critics (including small businesses, startups, and advocacy groups) warn that:
– The system favors large companies in expensive cities, making it hard for small businesses and startups to compete.
– Entry-level workers and recent graduates, who often get Level 1 or 2 wages, will have a much lower chance of being picked.
– Smaller cities and regions with lower wages will struggle to attract H-1B workers, which could widen economic and innovation gaps.
– Employers might try to “game” the system by inflating job titles or wages to get a better chance, which could create enforcement problems.
– The U.S. could lose talented international students who might choose to study in other countries with better job prospects after graduation.
Implications for Pending and Future Applications
If you have already applied for an H-1B visa under the current lottery system, your application will be processed as usual. The new rules will not affect you unless you apply again in the future.
For those planning to apply in the FY 2027 season or later, the new wage-based system will apply. This means you and your employer should pay close attention to the wage level offered for your job. Entry-level and lower-wage jobs will have a much lower chance of being selected, so it’s important to discuss wage levels with your employer early on.
Practical Guidance for Employers and Applicants
For Employers:
– Assess Wage Offers: Review the OES wage levels for your job openings and locations. You can find these on the U.S. Department of Labor’s wage data page.
– Adjust Pay if Possible: If you want to improve your chances, consider offering a higher wage that matches Level 3 or 4 for your job type and location.
– Document Everything: Be ready to show proof of the wage offered and how it matches the OES wage level when you file your petition.
– Plan Ahead: Start preparing early, especially if you are a small business or located outside a major city.
For Applicants:
– Know Your Wage Level: Ask your employer what wage level your job offer falls under.
– Discuss Options: If you are at Level 1 or 2, talk to your employer about the possibility of a higher wage or a more advanced job title, if appropriate.
– Stay Informed: Watch for updates from USCIS and DHS about when the new rule will take effect.
Step-by-Step Process (Anticipated)
- Registration Submission: Employers submit electronic registrations for each H-1B candidate, including the wage level.
- Weighted Selection: USCIS ranks all registrations by wage level, starting with Level 4.
- Lottery Within Levels: If there are more registrations than visas at a certain level, a lottery is held within that group.
- Petition Filing: Employers file full H-1B petitions for selected candidates, including wage documentation. The official H-1B petition form is Form I-129.
- Adjudication: USCIS reviews petitions to make sure all requirements are met, including wage and labor condition application compliance.
Quantitative Data and Numbers
- 85,000 H-1B visas available each year (including 20,000 for advanced U.S. degree holders).
- Four wage levels based on job type, location, and experience.
- Proposed rule submitted July 17, 2025; expected to affect FY 2027 H-1B cap season.
Potential Downsides and Risks
- Regional Bias: The new system favors jobs in big cities with higher salaries, making it harder for smaller cities and rural areas to attract H-1B workers.
- Entry-Level Workers at Risk: Most new graduates and entry-level workers are offered Level 1 or 2 wages, so their chances of selection drop sharply.
- Small Businesses Disadvantaged: Startups and small companies may not be able to pay high enough wages to compete.
- System Gaming: Some employers might try to boost their chances by inflating job titles or wages, which could lead to more government checks and possible penalties.
- Reduced Diversity: By focusing on higher wages, the system could reduce the variety of backgrounds and skills among H-1B workers.
- Impact on U.S. Education: International students may choose to study in other countries if they see fewer job opportunities in the United States 🇺🇸 after graduation.
The Intended Upside
- Higher Wages for Foreign Workers: The system encourages employers to pay more, which could help protect U.S. workers and make sure H-1B visas go to highly skilled people.
- Less Abuse of the Program: By making it harder to use H-1B visas for low-wage jobs, the system aims to stop companies from using the program just to save money.
Expert Analysis and Outlook
Immigration law experts say this is a major change in H-1B policy. Moving from a random lottery to a wage-based system puts more focus on job quality and pay. Supporters hope it will protect U.S. workers and make the program stronger. Critics worry it could hurt small businesses, entry-level workers, and the diversity of the U.S. workforce.
As reported by VisaVerge.com, the final details of the rule, including how wage levels will be checked and how the system will work with other H-1B changes, are still being worked out. Everyone involved should watch for the official rule in the Federal Register and be ready to adjust their plans.
Official Resources and Next Steps
- For the latest information on H-1B eligibility and filing, visit the USCIS H-1B Specialty Occupations page.
- Employers and applicants should keep an eye on official USCIS and DHS announcements.
- Consider talking to an immigration attorney for help with wage levels and application strategies.
Actionable Takeaways
- Employers: Review wage offers, benchmark against OES data, and prepare for new documentation needs.
- Applicants: Know your wage level, discuss options with your employer, and stay updated on rule changes.
- Pending Applicants: Your current application will not be affected, but future applications will need to follow the new rules.
- All Stakeholders: Watch for the final rule in the Federal Register and be ready to act quickly when the new system is announced.
This update marks a big shift in how the United States 🇺🇸 selects H-1B workers. By focusing on pay-scale and wage levels, the government aims to raise standards but also brings new challenges for many employers and workers. Staying informed and preparing early will be key to success under the new system.
Learn Today
H-1B Visa → A U.S. work visa for skilled foreign workers in specialty occupations requiring higher education.
Department of Homeland Security (DHS) → U.S. federal agency responsible for immigration policy and enforcement, overseeing the H-1B visa program.
Occupational Employment Statistics (OES) → Department of Labor data classifying wage levels by job type, location, and experience.
Fiscal Year (FY) → A government accounting period; for immigration, FY starts October 1 each year for visa caps.
Lottery System → Random selection method used previously for awarding H-1B visas among many applications.
This Article in a Nutshell
The U.S. plans a major H-1B visa change, replacing the lottery with wage-based selection prioritizing higher salaries. This impacts employers, international workers, and students starting in Fiscal Year 2027, requiring wage adjustments and new documentation to improve visa chances under the new system.
— By VisaVerge.com