The H-1B Lottery: Major Changes Employers Need to Know

Tanya Powers
1 hour ago
3 min read

Corporate employers and HR leaders meeting about H-1B lottery changes and immigration compliance.

Each year, the H-1B cap lottery presents challenges for U.S. employers seeking to hire and retain foreign national professionals. For this H-1B cap season, the process remains competitive—but the rules have changed in a way that significantly affects employer strategy.

This year, U.S. Citizenship and Immigration Services (USCIS) has implemented a wage-based selection system, moving away from a purely random lottery. Employers should understand how this change works, what deadlines apply, and whether the new $100,000 government fee could affect their organization.

Overview of the H-1B Cap Lottery

The H-1B visa allows U.S. employers to sponsor foreign workers in specialty occupations that typically require at least a bachelor’s degree or equivalent experience. Each fiscal year:

65,000 visas are available under the regular cap
20,000 additional visas are reserved for individuals with U.S. master’s degrees or higher

Because demand far exceeds supply, USCIS conducts a lottery to select which registrations may proceed to full petition filing.

Key Dates for the 2026 H-1B Cap Season

H-1B Registration Period: March 4, 2026 through March 19, 2026
Lottery Selection Announcements: Late March / Early April 2026
Petition Filing Window: 90 days after selection
Earliest Employment Start Date: October 1, 2026

Registrations must be submitted during the designated registration period. Late filings are not accepted, and missing the registration window eliminates the possibility of sponsorship for this cap season.

What’s New: H-1B Lottery Changes: Wage-Based Lottery Selection

For the 2026 lottery, USCIS is prioritizing H-1B registrations based on wage levels, rather than selecting registrations entirely at random.

How the Wage-Based System Works

Each H-1B registration includes a wage level determined by Department of Labor standards.
Registrations offering higher wage levels are given priority in the selection process.
Lower wage levels are considered only after higher wage registrations are exhausted.

In practical terms, this means:

Employers offering higher wages have a better chance of selection
Entry-level or lower-wage roles face reduced odds, even if otherwise eligible

USCIS has stated that the purpose of this change is to prioritize higher-skilled and higher-paid positions within the H-1B program.

Why Wage Strategy Matters More Than Ever

Under the prior system, all properly submitted registrations had equal odds. That is no longer the case.

Employers should now:

Carefully review job duties and minimum requirements
Ensure wage levels accurately reflect the role and market
Understand how wage level selection may affect workforce planning

Early planning is essential. Once the registration is submitted, wage level decisions cannot be changed for lottery purposes.

The $100,000 H-1B Fee: What Employers Need to Know

In addition to the new wage-based lottery system, employers should be aware of a separate and significant $100,000 government fee imposed under a Presidential Proclamation issued on September 19, 2025.

This fee is not based on employer size or workforce composition. Instead, it applies to certain new H-1B petitions depending on the worker’s location and visa circumstances at the time of filing.

When the $100,000 Fee Applies

The fee may be required for H-1B petitions filed on or after September 21, 2025, if any of the following apply:

The worker is outside the United States at the time of filing and does not have a valid H-1B visa stamp;
The petition requests consular notification, port-of-entry notification, or pre-flight inspection; or
The petition requests a change of status, amendment, or extension, but U.S. Citizenship and Immigration Services (USCIS) determines the individual is not eligible for that benefit.

If a petition falls into one of these categories, the $100,000 fee must be paid before filing, and proof of payment must be included with the petition.

What Employers Should Be Doing Now

With the new wage-based selection system, advance preparation is critical. Employers should:

Identify potential H-1B candidates early
Review wage levels and job classifications
Evaluate workforce size and visa ratios
Coordinate with immigration counsel before registration opens

Waiting until March can limit options and increase risk.

Final Thoughts

The H-1B lottery represents a fundamental shift in how USCIS selects registrations. Wage levels now play a central role, and financial exposure may increase for certain employers.

Understanding these changes—and planning accordingly—can make the difference between a successful filing and a missed opportunity.

If you have questions about eligibility, wage strategy, or whether the $100,000 fee may apply to your organization, we encourage you to reach out to discuss next steps.

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal advice. Every immigration case is unique, and the laws and procedures can be complex and subject to change. Reading this blog does not create an attorney-client relationship. If you are facing an immigration issue, you should consult with a qualified immigration attorney to receive personalized legal guidance based on your specific circumstances.