H-1B Reforms Prioritize Wages; Cupertino, SF Top Earnings

DETECTED RESOURCES (in order of appearance)
1. Form I-129, Petition for a Nonimmigrant Worker (form, mentioned 1 times)
2. Weighting system for H-1B based on wage level (policy, mentioned 1 times)

Now returning the article with up to 5 .gov links added. Per instructions, I will link only the first mention of each resource in the article body, using exact resource names and .gov URLs.

(CUPERTINO, SAN FRANCISCO, UNITED STATES) The U.S. government is moving ahead with H-1B reform that would give a clear edge to higher-paid roles, a change that could favor software engineers in Cupertino and San Francisco, who rank among the highest earners on H-1B visas. The Department of Homeland Security (DHS) published a proposed rule on September 24, 2025, that would replace the current random lottery with a weighted system based on wage level, putting pay at the center of H-1B selection. Officials say the plan aims to reward higher skill and reduce the draw of lower-wage filings.

How the proposed wage-weighted selection would work

Under the proposal, H-1B registrations would be stacked by wage level, with more entries allotted for higher pay. Employers would still file registrations during the March window, but selection odds would vary by the offered wage. According to DHS, Level IV roles would see the strongest tilt.

This is a major design change for the H-1B cap season, which today relies on chance rather than wage signals, and it marks a policy turn long sought by parts of the U.S. tech sector 🇺🇸.

The plan uses the Department of Labor’s prevailing wage system to assign wage levels and counts entries per unique registration (not per beneficiary multiple times). The entry count by wage level:

• Wage Level IV: four entries
• Wage Level III: three entries
• Wage Level II: two entries
• Wage Level I: one entry

DHS modeling shared with stakeholders suggests large shifts in selection odds if finalized:

• Level I: 48% decrease in selection chance
• Level II: 3% increase in selection chance
• Level III: 55% increase in selection chance
• Level IV: 107% increase in selection chance

The annual cap of 85,000 visas (65,000 regular plus 20,000 U.S. master’s cap) would remain in place. The public comment period runs 30 days from September 24, 2025, and if adopted, the system is expected to begin with the FY 2027 cap season, starting with registrations in March 2026.

Why Cupertino and San Francisco matter

Cupertino and San Francisco stand out because software developers in both cities command some of the highest average annual and hourly pay among major U.S. hubs. That premium reflects:

• Intense demand in innovation centers
• Presence of device makers, cloud firms, and AI startups
• High cost of living and employer willingness to secure niche talent for complex work

Those higher wages map closely to higher wage levels under the proposal, positioning these cities to benefit from the new selection system.

Broader effects on Indian IT firms and global delivery

The effect reaches far beyond the Bay Area. For India-based firms such as TCS, Infosys, Wipro, and HCL, high-wage U.S. hubs matter because they maintain delivery and client teams near large accounts, often in the Bay Area and other coastal markets.

• VisaVerge.com reports these companies may need to adjust salaries for onsite roles to keep pace with a wage-led selection system, especially for mid-level jobs that currently sit at Level I or II.
• Where wages lag, firms could steer roles offshore or to lower-cost U.S. cities.

Policy changes overview

The core goal is to link selection odds to wage level as a proxy for skill and role complexity. DHS argues this will:

• Steer visas toward jobs needing advanced know-how
• Reduce filings for entry roles that could be filled through other paths

VisaVerge.com’s analysis notes the weighted approach would not change cap numbers, but would reorder which registrations rise to the top when caps are met.

Other related policy shifts:

• A new $100,000 H-1B application fee was announced in September 2025 and took effect on September 21, 2025.
• Employers say higher costs, combined with wage-driven selection odds, will make them more selective about which roles they sponsor and where they place those jobs within the United States 🇺🇸.

Wage context and distribution:

• In 2021, the median H-1B wage was $108,000, compared with $45,760 median for all U.S. workers.
• In Silicon Valley cities, the wage gap is often larger, so hubs like Cupertino and San Francisco could see even more concentration of H-1B approvals at the upper end if wage level becomes the key filter.

Practical implications for employers and petitioning

Employers should expect closer review of how they assign wage level at registration. That includes:

• Precise job descriptions
• Proof of required duties
• Careful alignment with prevailing wage data

Firms that can justify Level III or IV wages for hard-to-fill roles will see better selection odds. Those running large volumes of Level I filings for junior roles will face a steeper climb.

Cap mechanics remain:

• Regular cap: 65,000
• Advanced-degree exemption: 20,000
• Registrations open in March; employers file only if selected
• After selection, employers must submit a complete Form I-129, Petition for a Nonimmigrant Worker with supporting evidence and a certified Labor Condition Application

Expect USCIS to scrutinize wage claims at the petition stage, comparing duties, job zones, and the chosen wage level.

Expect USCIS to scrutinize wage claims at the petition stage, comparing duties, job zones, and the chosen wage level.

Example scenario

Consider a Cupertino device maker hiring two software developers:

1. A senior kernel engineer offered at Level IV — gets four entries and a much stronger chance of selection.
2. A junior tools developer offered at Level I — gets one entry and faces a lower chance.

The firm may file both registrations, but expected outcomes favor the senior role. Over time, this could shape onsite teams toward higher-skill roles, with junior work moved elsewhere.

Impact on applicants and workforce strategies

For applicants, salary offers will matter more than ever.

• A mid-level software engineer with niche experience offered at Level III will have much better odds than a generalist at Level I.
• A senior machine-learning lead offered at Level IV gains the most advantage.
• An entry-level data analyst at Level I may struggle.

Indian IT services firms that rotate mid-level consultants onto client sites may:

• Raise wage offers in high-cost hubs to meet Level III or IV
• Rebalance headcounts, keeping some work offshore
• Move roles to lower-cost U.S. metros
• Focus on premium skill sets (advanced cloud security, chip design, AI infrastructure)

Students on F-1 OPT should factor wage level into job searches. Offers in the Bay Area may pay more but carry higher living costs. Offers in mid-market cities may translate to a stronger wage level relative to local norms, improving selection odds even if the raw salary is lower.

Smaller startups may:

• Stretch salaries for a few key roles to reach Level III/IV
• Pivot to cap-exempt strategies (universities, nonprofit research)
• Consider remote work with periodic travel if wages can’t meet target levels

VisaVerge.com notes employers will likely pair H-1B filings with contingency plans in O-1, TN (for eligible nationals), or L-1 categories.

Workers, families, and communities

Selection stage mechanics for dependents (H-4) don’t change, but outcomes may concentrate approvals in high-wage hubs, affecting:

• Relocation patterns toward the Bay Area
• Higher housing and childcare costs for families
• Greater reliance on local support networks (schools, cultural centers, newcomer groups)

Community groups in Silicon Valley expect local support to become more important if high-wage H-1B approvals rise.

Timeline and next steps

• The rule is currently a proposal; the public comment period is open (30 days from September 24, 2025).
• If finalized after review, DHS expects the weighted system to debut for FY 2027, with registrations in March 2026.
• Employers should:
  1. Map roles to wage levels now
  2. Build documentation to support wage assignments
  3. Adjust offers where feasible before the next registration window

Key takeaway: Pay will carry more weight in the H-1B cap season than at any time in recent memory. Policymakers, employers, worker advocates, and applicants will be watching the comment process closely.

Worker advocates warn the system could narrow early-career pathways and reduce role diversity within H-1B selections. Business groups argue the change channels visas to higher-skill, higher-pay jobs and improves program integrity. Policymakers will weigh these trade-offs during the comment process.

As the proposal moves forward, Cupertino and San Francisco appear well placed to benefit, given their high pay and demand for specialized workers. With wage level at the core of selection, the highest earners in these hubs will likely continue to anchor many H-1B approvals. Employers, workers, and schools should monitor DHS’s review of comments and the agency’s final decision on this potential new path for the H-1B program.