A new Department of Homeland Security rule finalized in December 2025 changes how the H-1B lottery works by weighting each registration based on the offered wage. Employers that register a worker at the highest defensible OEWS wage level get more chances in the same annual cap.
The basic cap stays the same: 85,000 cap-subject H-1Bs each year, made up of 65,000 regular cap numbers plus 20,000 under the master’s exemption. What changes is how USCIS picks from the pool, and that shift pushes employers to treat wage setting like a selection strategy, not just a compliance step.
December 2025 DHS rule: more “entries” for higher wages
Under the weighted selection system, USCIS will run a single selection from one unified registration pool. Each unique beneficiary gets multiple “entries” tied to the wage level selected for that registration.
The weighting is simple:
- OEWS wage level IV: 4x entries
- OEWS wage level III: 3x entries
- OEWS wage level II: 2x entries
- OEWS wage level I: 1x entry
That one design choice changes the math for every employer deciding what role to register and what wage to offer.
Unified pool mechanics: one person, multiple entries, one cap number
This is not a new cap and not separate pools. USCIS still selects the same number of people for the same 85,000 limit.
Instead, the rule assigns more “tickets” in the same drawing. Those extra entries come from the wage level tied to the job’s offered pay and the job’s SOC code (Standard Occupational Classification code).
Key points:
- The registration still reflects one beneficiary.
- The beneficiary still takes only one cap number if selected.
- The wage level determines how many times that beneficiary appears in the selection pool.
Projected selection shifts under the weighting model
The rule’s projected impact is sharpest at the top and bottom wage levels. The projections cited in the rule framework show these probability shifts:
| OEWS Wage Level | Projected selection change |
|---|---|
| Level IV | +107% |
| Level III | +55% |
| Level II | +3% |
| Level I | -48% |
For employers that historically filed many entry-level roles, the message is blunt: Level I registrations lose ground in a system that rewards higher wages.
Effective date and timing employers are planning around
The rule is set to take effect 60 days after Federal Register publication, which is expected in early 2026. It applies to all registrations submitted after it takes effect.
That timing matters because many employers build hiring calendars around the March registration window. If the effective date lands before that window, the first registration season under the new rules will push wage-level decisions into the center of H-1B planning.
Effective date is ~60 days after Federal Register, likely early 2026. Plan March registrations around this timing and ensure wage-level decisions are solid before the window opens.
Wage level, SOC code, and location: the three fields that drive risk
A higher wage level increases selection odds only if the wage level is defensible. USCIS scrutiny rises when a registration claims a high wage level, but the later petition materials look like a lower-level job.
Three data points must line up from registration through petition filing:
- The OEWS wage level selected
- The SOC code used for the role
- The work location tied to that wage data
Mismatch risk is practical, not theoretical. The framework anticipates USCIS review for manipulation, and inconsistencies can trigger RFEs, denials, or later revocation issues.
Important: Inconsistencies between registration and petition (wage level, SOC, location) can lead to RFEs, denials, or revocations. Treat the registration as the first page of the record.
Practical employer strategy: raising odds without inviting a denial
Employers are reacting with a mix of compensation planning and job-design cleanup. The goal is not to “game” the system. The goal is to register at the highest wage level the facts can support.
Job design that supports Level III or Level IV
The strongest cases start with job duties that naturally justify a higher wage level for that SOC code in that metro area. Employers are focusing on job descriptions that show real complexity, including:
- Advanced tools, niche platforms, or specialized technical stacks
- Senior-level decision-making or ownership of key systems
- Leadership duties, mentoring, or project accountability
- Experience expectations, such as 5+ years in a specialized domain
The rule discussion commonly uses a software developer example: a role that looks entry-level (Level I) can be Level IV when it includes documented leadership and specialized requirements.
Aligning pay to the target wage level
The offered salary must match the level being claimed. If a company wants Level III or IV entries, it needs a wage that meets or exceeds that wage level’s numbers for the role and area.
Consequences and actions:
- Coordinate earlier with compensation teams to set offers that support the claimed wage level.
- Recognize that offering a lower salary not only creates a wage problem later but also reduces entries in the lottery.
Registration-to-petition consistency planning
Once a beneficiary is selected, the employer still must file a complete H-1B petition. Employers are treating the registration as the first page of the record, not a placeholder.
Suggested documentation and steps employers are taking before registration closes:
- Assemble job ads and tight job descriptions that match the claimed wage level.
- Collect internal leveling guides and evidence of senior expectations.
- Gather market pay surveys or benchmarking data.
- Prepare expert letters explaining why specialized skills are required.
When it is time to file, the primary petition vehicle is Form I-129, Petition for a Nonimmigrant Worker (USCIS), and USCIS posts the form and instructions here: Form I-129, Petition for a Nonimmigrant Worker (USCIS).
Master’s exemption still matters, and weighting applies there too
The rule preserves the structure that includes the master’s exemption in the same overall cap architecture. The unified pool still covers all 85,000 cap numbers, including the 20,000 set aside for qualifying U.S. advanced degrees.
Employers are still pairing education strategy with wage strategy. The framework notes that, historically, having a U.S. master’s degree has added about a 16% selection edge compared with bachelor’s-only cases, because of the second chance through the master’s set-aside.
Now the weighting adds another layer: a master’s graduate at wage Level III or IV becomes far more competitive than a master’s graduate registered at Level I.
Who feels the pressure: staffing firms, startups, and large employers
The weighting rule reshapes which business models feel the most strain.
- Startups: Often want a strong candidate but struggle to push pay high enough to justify Level III or IV in expensive metros. That forces a choice between offering higher wages or accepting reduced odds.
- Large employers: With structured job levels and documented pay bands, they may more easily defend Level III or IV roles. That documentation becomes a selection tool.
- Staffing firms: Face special exposure because USCIS focuses on whether the petitioner controls the work and can document a specialty occupation. Under weighting, inconsistencies between SOC code, location, and placement are harder to defend.
According to analysis by VisaVerge.com, the rule’s biggest practical effect is cultural inside companies: wage setting moves from a late-stage compliance step to an early-stage hiring decision.
Documentation habits that reduce RFE risk under a wage-weighted system
Employers are shifting prep work earlier, especially for March registration planning. The most reliable approach is to gather support before the registration is filed, not after selection.
Common documentation employers are lining up includes:
- A tight job description that matches the claimed wage level
- Internal job ladder documents showing senior expectations
- Market pay surveys or benchmarking data
- Expert letters explaining why specialized skills are required
Timing recommendation: Plan job searches in late fall and winter so the role and wage story are stable by the March registration period.
What employees should watch for in job offers and registrations
Workers often cannot control how an employer files the registration, but they can spot risk early.
- A role pitched as “junior” with a low salary is a Level I story. Under weighting, that story brings one entry and a projected 48% drop in probability compared with the prior baseline model.
- A role described as senior with leadership duties should show it in writing. The wage level selected at registration must be supported later; employees often feel the harm first when an RFE arrives.
Practical takeaways for employees:
- Ensure the offer letter, job description, and pay reflect senior responsibilities if the role is senior.
- Confirm the SOC code and location used in registration align with the written job materials.
Bottom line: The new rule rewards clarity and defensibility. If the job is senior, make sure the offer, description, and pay all say so and match the SOC code chosen for registration.
Starting in early 2026, the H-1B lottery will move to a weighted system where higher wages equal more chances for selection. Under the new DHS rule, Wage Level IV candidates receive four entries compared to just one for Level I. This change forces employers to align job descriptions, SOC codes, and compensation early in the hiring process to maximize selection odds while maintaining legal defensibility.
