H-1B FY 2027: Wage-Based Lottery Replaces Old System for Cap

(UNITED STATES) — USCIS will open FY 2027 H-1B registrations on February 27, 2026, launching a new Wage-Based Selection system that replaces the long-running random lottery. The change follows a final rule published December 29, 2025, and it reshapes how employers should price roles and how candidates should plan careers.

The annual H-1B cap remains 85,000 visas. That total includes 65,000 under the regular cap and 20,000 under the U.S. advanced degree exemption. What changes is the method USCIS uses when registrations exceed the cap.

USCIS also requires more detail at registration. Employers must provide the SOC code, area of intended employment, and the wage level. USCIS will later check that the filed petition and the Labor Condition Application (LCA) match the registration.

📅 Key Date: FY 2027 registration opens February 27, 2026. Employers should validate SOC codes and wage levels before that date.

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

USCIS has confirmed the start date for registration. Other dates follow the typical cap-season cadence.

What “Wage-Based Selection” means in practice

Under the new rule, USCIS will still run a selection process, but the pool is no longer purely random. It is weighted by the DOL wage level tied to the offered role.

USCIS will assign multiple selection entries based on wage level:

Key clarifications:

• This is not a salary auction. Selection weight follows the wage level, not the raw salary.
• Wage levels are tied to SOC code and location (so Level III in one city may pay less than Level II in another).

Two integrity rules materially affect planning:

1. Multiple work locations can lower selection weight — USCIS will use the lowest wage level among listed worksites.
2. Multiple employers registering the same person can also lower selection weight — USCIS will use the lowest wage level among those registrations.

The second rule is a major shift: it reduces “stacking” strategies and creates risk for candidates who accept a lower-level registration from a backup employer.

⚠️ Employer Alert: Your registration wage level must match the later LCA and petition. Mismatches can trigger denial or fraud findings.

Comparison to FY 2026: what changed and what stayed the same

FY 2026 introduced the beneficiary-centric registration format, allowing one registration per beneficiary even with multiple sponsors. That reduced duplicate-entry gaming.

FY 2027 keeps the integrity emphasis but adds wage-level weighting and more data matching. The cap totals remain unchanged.

Expect increased USCIS scrutiny, particularly for Level I (entry-level) cases. Level I filings often face heightened “specialty occupation” questions — a concern in tech, consulting, and third-party placements.

The new $100,000 fee and its impact on hiring

DHS implemented a mandatory $100,000 fee for certain cap-subject filings. The rule took effect September 21, 2025, and applies to FY 2027 and beyond. Employers should budget early and confirm applicability by worker location and filing posture.

This fee reshapes recruiting strategies:

• Some employers will file fewer registrations.
• Some will increase offers to achieve higher wage levels.
• Some will shift roles offshore or alter hiring plans.

For context, the traditional fee stack remains significant and includes:

• $215 registration fee
• $780 I-129 fee
• $500 fraud fee
• ACWIA fee: $750 or $1,500
• Premium processing: $2,805

What happens after selection

If selected, the employer must file a complete Form I-129 H-1B petition with a certified LCA within the filing window. The LCA requires the employer to pay the higher of the prevailing wage or the actual wage.

Employees should confirm three items early:

• The SOC code matches the actual duties.
• The worksite address matches where work will occur.
• The wage level aligns with experience and supervision.

If the candidate is outside the U.S., the process concludes with consular visa stamping. The earliest entry window is generally close to the start date, and port-of-entry officers will check the approval notice, employer, and role consistency.

If not selected, the registration is simply unselected, not a denial. USCIS may run additional selection rounds if more filings are needed, depending on overall filing volume and denial rates.

💼 Employee Tip: Do not accept a second employer registration at a lower wage level without legal advice. The lowest wage level can control your selection weight.

Options if not selected: cap-exempt and alternate visa paths

Candidates denied selection have multiple alternatives. Common options include:

• Cap-exempt H-1B: Universities, affiliated nonprofits, and nonprofit research entities can file year-round.
• O-1: For individuals with sustained acclaim; evidence standards are high.
• L-1: For intracompany transfers after qualifying employment abroad; role and corporate structure must meet requirements.
• TN: For Canadian and Mexican professionals in listed occupations.
• E-3: For Australian nationals in specialty occupations.
• STEM OPT strategy: For F-1 students, time OPT carefully for multiple cap attempts and confirm employer E-Verify participation.

For long-term planning, employers may accelerate employment-based green card steps. Prevailing wage determinations and recruitment steps can take months; early action reduces status gaps.

Job search and salary strategy under wage-weighted selection

This rule will shift market behavior:

• Candidates will prioritize employers that can offer Level II or higher.
• Employers will revise job descriptions to justify higher levels — but must remain truthful.
• Wage levels depend on SOC code, location, and job requirements.

Risks and best practices:

• Avoid inflated requirements that conflict with internal leveling; USCIS can request evidence.
• Inconsistent internal leveling can trigger wage-hour exposure.
• Candidates should target roles with clear specialty duties and direct degree fit.
• Generalist titles and broad duties are more likely to receive RFEs.
• Third-party assignments need robust end-client documentation.

Projected FY 2028 timeline

USCIS has not published FY 2028 dates. Historically, registration opens in late February or early March.

• Expect FY 2028 registration in early March 2027.
• Employers should prepare wage and SOC decisions by January 2027.

What to do now (January 2026)

Employers should complete wage-level planning before registration opens. Employees should target roles that legitimately support Level II–IV wages.

Action checklist:

• Employers:
• Confirm SOC codes, worksites, and wage levels by early February 2026.
• Start LCA preparation in parallel.
• Budget for potential $100,000 fee exposure.
• Employees:
• Verify job duties match your degree field.
• Confirm intended work location and offered wage level.
• Align job search with roles that support higher wage levels.
• Dates to track:
• February 27, 2026 — registration opens
• Mid-March 2026 — registration closes (typical)
• Late March / early April 2026 — selections (typical)
• April 1, 2026 — petition filing window opens (typical)

📋 Official Resources:
– H-1B Program: H-1B Program
– Cap Season: Cap Season
– Prevailing Wages: flcdatacenter.com