As employers prepare for the FY 2027 H-1B cap season and the associated H-1B lottery in March 2026, two distinct developments are expected to shape strategy and outcomes:
- The Department of Homeland Security (DHS) has published a final weighted selection regulation, which allocates additional lottery entries based on wage levels; and
- Ongoing litigation challenging the presidential $100,000 H-1B fee proclamation, which remains in effect for now.
Weighted Selection Process for H-1B Registrations Overview
In follow-up to our prior analysis of the proposed changes to the H 1B cap registration process, DHS has finalized a weighted selection process that will apply beginning with the FY 2027 H-1B cap registration season, although litigation is expected. DHS adopted the final rule without changes.
Under the weighted selection mechanics, beneficiaries will be entered into the selection pool as follows, with the highest wage levels having a higher chance of selection:
- Wage Level IV: 4 entries
- Wage Level III: 3 entries
- Wage Level II: 2 entries
- Wage Level I: 1 entry
In cases where a beneficiary may have multiple bona fide job offers (each with its own associated H-1B cap registration), USCIS will assign the beneficiary with the lowest wage level among all registrations submitted on their behalf for purposes of weighting.
The final rule substantially expands the information burden required at the registration stage, including assessment and submission of:
- Highest Department of Labor (OEWS) wage level that the offered wage equals or exceeds;
- SOC code (Standard Occupational Classification code) for the H-1B position; and
- Area(s) of intended employment used to determine wage level.
Employers must also certify that registrations are submitted in good faith and are not intended to unfairly increase selection odds.
The regulation otherwise retains the beneficiary-centric selection process. Selections are conducted by unique beneficiary, regardless of how many registrations are submitted for that individual. Each beneficiary is counted only once toward the annual numerical limits, though they may receive multiple weighted entries based on wage level.
Registration Period and Timing
The initial H-1B registration period must last at least 14 calendar days. USCIS must announce the registration start date by March 2, 2026 (at least 30 days in advance of the statutory filing period), and the period must begin by March 18, 2026 (at least 14 days in advance of the statutory filing period). USCIS may extend or reopen the registration period if necessary to reach projected cap numbers. Unselected registrations remain on reserve and may be selected later if USCIS increases projected needs.
Petition Filing and Evidence Requirements
Pursuant to the final regulation, the information collected at registration (SOC code, OEWS wage level and area of intended employment) will also be collected on the petition. An H-1B cap petition must be based on a valid, selected registration and must include evidence supporting the wage level selection as of the registration date.
H-1B Presidential Fee Proclamation and Litigation Background and Key Decision
The presidential $100,000 fee for certain new H-1B petitions filed on behalf of beneficiaries outside the U.S. has been upheld for now in Chamber of Commerce v. DHS, Case No. 25-cv-3675 (D.D.C.). The court rejected claims that the fee exceeds presidential authority or constitutes an unlawful tax. The decision is on appeal, but the proclamation remains in effect.
Additional Pending Litigation
- Global Nurse Force v. Trump, 4:25-cv-08454 (N.D. Cal.): Filed October 2025 by a coalition of healthcare staffing firms, unions, educators, religious organizations, and individual visa holders, alleging the fee exceeds statutory authority and constitutes an unauthorized tax. A motion for preliminary injunction and class certification was filed December 18, 2025 and a hearing is scheduled for February 19, 2026.
- State of California v. Noem, 1:25-cv-13829 (D. Mass.): Filed December 12, 2025 by a coalition of 20 states, alleging violations of federal laws and the U.S. Constitution, and harm to employers facing workforce shortages.
Practical Takeaways for Employers
- The weighted selection regulation and the H-1B presidential fee litigation are separate developments, but together they will materially influence H-1B cap season strategy.
- Under the weighted selection regulation, employers should expect greater front-loaded burden at the registration stage, as wage strategy, job structuring, and documentation must be fully assessed and finalized before registration.
- The regulation is expected to negatively impact early-career pipelines, as higher-wage positions will benefit from increased selection odds under the weighted system.
- Conversely, the $100,000 Presidential Proclamation fee may reduce H-1B registrations overall, particularly for beneficiaries requiring visa issuance abroad. Reduced participation may indirectly improve selection odds for remaining registrants, especially for higher-wage positions advantaged by the new weighted selection rule.
- Employers should work with counsel well in advance to finalize job details earlier and prepare for increased registration-stage requirements, and monitor ongoing litigation that may further affect filing volumes and selection dynamics.
Gibney is closely monitoring these developments and will provide additional updates as they are announced. This alert is solely for informational purposes and does not constitute legal advice. If you have questions or require assistance, please contact your Gibney representative or email info@gibney.com.
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Author: Violeta Petrova