The H‑1B cap season is changing for FY 2027. DHS published a final rule that replaces a purely random cap selection with a wage‑weighted selection model tied to OEWS wage levels.
For employers, this turns compensation strategy, SOC selection, and worksite planning into core cap-season levers—well before the registration window opens.
For employers preparing FY 2027 cap registrations (March 2026) and cap-subject filings.
TL;DR (Employer takeaways)
- Key takeaway: FY 2027 H‑1B cap selection becomes wage‑weighted by OEWS wage level, while remaining beneficiary‑centric (one registration per unique beneficiary).
- Key takeaway: Wage level affects how many “entries” a beneficiary receives in the selection pool—higher levels receive more entries.
- Cost risk (abroad hires): If your H‑1B hire is outside the U.S., a presidential proclamation restricts entry unless the petition is accompanied or supplemented by a $100,000 payment, subject to limited exceptions.
H‑1B Visa Guide: requirements, lottery, fees, timeline & next steps
What changed for FY 2027 (and when it starts)
DHS published the final rule “Weighted Selection Process for Registrants and Petitioners Seeking to File Cap‑Subject H‑1B Petitions.”
Key date: The rule’s effective date is February 27, 2026, and it is intended to apply in time for the FY 2027 registration season (March 2026 registrations for an October 1, 2026 start date).
Core change: a wage‑weighted selection model
Under the final rule, USCIS keeps the beneficiary‑centric framework (one registration per unique beneficiary), but adds a wage‑level weighting mechanism based on the OEWS wage tier that the offered wage meets or exceeds.
What this means for employers: Practically, this means the offered wage level can increase or decrease relative selection odds for cap‑subject candidates, even when the role is otherwise eligible.
How the weighting works (what employers must provide)
At the registration stage, employers must provide more granular position details, including the SOC code, the area(s) of intended employment, and the highest OEWS wage level that the offered wage equals or exceeds.
Compliance risk: That declared wage level determines how many times the beneficiary is entered into the selection pool.
Table — approximate weighting by OEWS wage level
OEWS wage level and selection pool entries (illustrative effect)
| OEWS wage level | Entries in selection pool | Practical effect |
| Level IV | 4 | Substantially higher odds for top‑paid roles. |
| Level III | 3 | Higher odds than Levels I–II. |
| Level II | 2 | Moderate odds; disadvantaged vs Levels III–IV. |
| Level I | 1 | Lowest odds among properly filed registrations. |
What employers should do now (FY 2027 cap season checklist)
Before March 2026 registration opens
- Confirm the job is a specialty occupation and the degree requirement matches the actual duties (not just the job title).
- Choose a defensible SOC code and document how the duties align to that SOC.
- Map area(s) of intended employment and your remote/hybrid policy early, because wage analysis is location-sensitive and the registration requires area(s) of intended employment.
- Set a compensation strategy that is compliant, internally consistent, and aligned with cap-season risk tolerance under wage-weighted selection.
- Create an internal “consistency file” so what HR registers matches what will be filed later in the petition package (role, location, wage level).
If you’re hiring multiple candidates
- Avoid “volume-first” thinking; under wage-weighted selection, role design and wage positioning become the strategic driver rather than registration volume alone.
- Standardize intake: job description templates, SOC rationale, worksite confirmation, and wage-level documentation (so every registration is defensible and consistent).
We can review SOC selection, worksite planning, wage level positioning, and a filing timeline before registration.
Registration details + compliance (why accuracy matters more)
Compliance risk: The final rule increases the importance of consistency between what is represented at registration and what is later filed in the petition.
Employers should plan for change management (duties, salary adjustments, location changes) because these shifts can create compliance issues if they are not handled proactively.
Policy rationale (what DHS says it’s trying to do)
In the related policy context, the administration has described the goal as addressing perceived abuse of the H‑1B program and imposing higher costs while still allowing employers to hire “the best of the best” temporary foreign workers, as stated in the White House proclamation on restrictions for certain nonimmigrant workers.
This matters operationally because wage positioning and documentation quality may receive closer scrutiny during cap‑season planning and downstream adjudication.
New $100,000 payment requirement (high risk/cost for abroad hires)
Cost risk (abroad hires): A presidential proclamation restricts entry for certain H‑1B specialty occupation workers who are outside the United States unless the petition is accompanied or supplemented by a $100,000 payment, subject to exceptions (see the White House proclamation text).
The proclamation states this restriction is effective at 12:01 a.m. EDT on September 21, 2025 and—absent extension—expires 12 months after that effective date.
It also provides a discretionary national‑interest exception, allowing DHS to exempt individuals, companies, or industries if DHS determines it is in the national interest and does not pose a threat to U.S. security or welfare.
What employers should do (operationally)
- Budgeting: Treat the $100,000 payment as a potentially deal‑changing cost factor when the beneficiary is outside the U.S. and needs entry tied to consular processing.
- Documentation: The proclamation directs employers to obtain and retain documentation showing the payment was made before filing an H‑1B petition for an individual outside the U.S.
- Timing: The proclamation contemplates coordination between DHS and DOS and states that DOS may issue guidance related to visa processing; plan timelines accordingly.
- Risk management: DHS and DOS are directed to coordinate implementation and deny entry when the prospective employer has not made the required payment.
- Special note: The proclamation references preventing misuse of B visas by beneficiaries of approved H‑1B petitions with start dates prior to October 1, 2026, so travel/visa strategy should be reviewed carefully.
FAQs
Is the H‑1B lottery wage‑based for FY 2027?
DHS finalized a rule that weights cap selection using OEWS wage levels, changing selection odds relative to wage level.
Does a higher offered wage guarantee selection?
No—weighting changes odds, not eligibility, and it does not guarantee selection.
Which OEWS wage level should we use?
The rule ties selection entries to the highest OEWS wage level the offered wage meets or exceeds, so employers should set wage strategy early and document it carefully.
What should employers do before March 2026 registrations?
Finalize SOC code, area(s) of intended employment, wage strategy (OEWS positioning), and a consistency plan from registration through petition filing.
Does the $100,000 payment apply to every H‑1B case?
The proclamation restricts entry unless the petition is accompanied or supplemented by the payment, with a discretionary national‑interest exception; applicability is fact-specific.
Next step
If your company is planning FY 2027 cap registrations, a focused strategy session can help align SOC selection, worksite planning, wage strategy, and documentation before the registration window opens.
Sources
- Federal Register: “Weighted Selection Process for Registrants and Petitioners Seeking to File Cap‑Subject H‑1B Petitions” (effective Feb 27, 2026)
- White House: “Restriction on Entry of Certain Nonimmigrant Workers” (includes $100,000 payment requirement; effective Sept 21, 2025)
Read the full H‑1B Visa Guide (requirements, lottery, fees, timeline)
