Indian-Origin Fedex CEO Raj Subramaniam Breaks Silence on H-1B Row, Sa…

(UNITED STATES) — With the FY 2027 H-1B cap season approaching, employers now face a hard deadline: USCIS’s wage-weighted selection rule takes effect on February 27, 2026, reshaping who is most likely to be chosen for the 85,000 cap.

The policy shift lands as FedEx CEO Raj Subramaniam, an Indian-origin executive leading one of America’s largest logistics employers, publicly defended his company’s hiring model amid criticism of H-1B visas. In remarks published January 19, 2026, Subramaniam said, “We are a Meritocracy,” framing the issue as fair competition for jobs rather than worker displacement.

FedEx’s meritocracy claim amid an H-1B controversy

Subramaniam’s comments respond to allegations that large U.S. employers use H-1B hiring to replace American workers. The dispute is not new, but the regulatory environment is tighter than it was even one year ago.

The administration has increasingly described H-1B changes as “merit-based.” This rhetoric now aligns with a selection system that favors higher wages and, by proxy, more senior roles. That creates a different reality for entry-level applicants and cost-sensitive employers.

📅 Key Date: February 27, 2026 — wage-weighted H-1B selection becomes effective for the FY 2027 cap process.

Subramaniam’s H-1B disclosures and FedEx’s 2025 data

Subramaniam said employees on H-1B status represent less than 0.05% of FedEx’s total U.S. workforce. He also said FedEx sought fewer than 100 H-1B visas for new hires in 2025.

He drew a line between new foreign recruitment and internal business moves. He said recent filings largely reflected internal transfers and consolidations, including moving employees into Federal Express Corporation. That distinction matters in public debate, but it does not change legal requirements for cap-subject filings.

USCIS employer-level reporting also shows growth in approvals. The USCIS H-1B Employer Data Hub lists FedEx approvals rising from 37 (2021) to 102 (2025). Critics have pointed to that increase alongside a $2.2 billion government logistics contract tied to the company.

Government policy shift: wage-weighted H-1B selection replaces the random lottery

USCIS confirmed a wage-weighted selection policy update, effective February 27, 2026. It replaces the long-running random lottery model used for cap-subject cases.

The new system prioritizes registrations associated with higher wage levels. In practice, that points employers toward Level III and Level IV wage offers under prevailing wage rules. Those wage levels typically align with experienced roles and complex duties.

This is also a clean comparison to the prior year. FY 2026 cap selection relied on random selection, even after USCIS moved to a beneficiary-centric registration approach. That earlier change limited each person to one selection chance, even if multiple employers registered them.

⚠️ Employer Alert: Wage-weighted selection increases audit risk for low wages and broad roles. Level I roles have drawn added specialty occupation scrutiny.

What “wage-weighted” means in prevailing wage terms

Prevailing wages are set by SOC code and work location. The Department of Labor wage structure commonly maps as follows.

Employers must pay the higher of the prevailing wage or actual wage for similarly employed workers. If an employer registers at a lower wage level, the case may still be registrable. It may become less competitive under weighted selection.

FY 2027 H-1B cap timeline (employment start: October 1, 2026)

USCIS has not always published exact registration dates far in advance. Employers should plan around the traditional cap calendar.

The one-registration-per-beneficiary rule remains in place. Multiple employers can register the same person, but the person only gets one selection entry.

Notable policy details affecting FY 2027 cases, especially India

Several measures now shape outcomes well beyond selection.

• $100,000 fee for certain petitions filed abroad, effective September 2025, adds major cost exposure. This is most disruptive for candidates outside the United States.
• Expanded vetting guidance (August 20, 2025) increased screening requirements. It has contributed to longer adjudication and consular review cycles.
• Adjudicative holds (effective January 1, 2026) apply to benefit requests for nationals of 39+ countries, including India. That can create delays even for strong cases.

These policy layers matter for travel planning. Applicants seeking visa stamps in India should plan for longer timelines. H-1B and H-4 appointment wait times can stretch for months in some posts.

💼 Employee Tip: If you need stamping in India, avoid last-minute international travel before October 1. Delays can block re-entry and onboarding.

Fees employers should budget for now

Even before the $100,000 abroad-filed fee issue, routine H-1B costs remain substantial. Employers must pay required fees. Employees cannot legally reimburse required employer fees.

What happens next after selection, and after non-selection

If selected, the employer files the full H-1B petition during the filing window. The filing package must include an approved LCA and evidence of a specialty occupation role.

Employees should confirm three items before filing. First, the job title and duties match a specialty occupation. Second, the degree field matches the role. Third, the worksite location matches the LCA.

If not selected, the registration can remain in reserve if USCIS conducts later rounds. Employers should also evaluate non-cap paths quickly, because start dates and travel needs do not pause.

Alternatives for those not selected, including options involving Canada

Several lawful options can keep projects staffed.

• Cap-exempt H-1B roles at universities, nonprofit research organizations, and affiliated entities.
• L-1 for intracompany transferees with qualifying prior employment abroad.
• O-1 for individuals with sustained national or international acclaim.
• TN (for Canadian and Mexican citizens) for certain professional roles.
• Canada-based work as a bridge. Some employers place talent in Canada temporarily, then re-enter the U.S. later. This can align with Canadian work authorization pathways.

Canada is not a substitute for U.S. work authorization. It can be a practical staffing option while a U.S. strategy continues.

Next year’s projected timeline (FY 2028)

If USCIS keeps the same cadence, the FY 2028 cycle should again begin with registration in March 2027. Employers should expect wage evidence and job leveling to matter even more under weighted selection.

⏰ Deadline: Plan wage leveling and LCA prep by January–February 2026. March registration arrives fast, and job changes can trigger rework.

Employers should finalize SOC codes, wage levels, and worksites by February 2026, then prepare for March 2026 registration. Employees should verify the offered wage level and confirm job duties match a specialty occupation.

Both should monitor USCIS cap announcements at uscis.gov/h-1b-cap-season before registration opens.

📋 Official Resources:

• H-1B Program: uscis.gov/h-1b-specialty-occupations
• Cap Season: uscis.gov/h-1b-cap-season
• Prevailing Wages: flcdatacenter.com