FY 2027 H-1B Cap Initial Registration Period Opens on March 4

The H-1B visa program’s 30-year random lottery system ends this spring. On December 29, 2025, the Department of Homeland Security published final regulations implementing a weighted selection process that prioritizes higher-paid positions. The new system takes effect on February 27, 2026, and will govern the FY 2027 H-1B Cap season, which opens on March 4, 2026.

What’s Changing

U.S. Citizenship and Immigration Services announced that the FY 2027 initial registration period runs from noon Eastern on March 4 through noon Eastern on March 19, 2026. Under the new framework, selection probability now depends directly on the offered wage level rather than pure chance.

USCIS will implement a weighted selection process that generally favors allocating H-1B visas to higher-skilled, higher-paid workers, while maintaining the opportunity for employers to secure H-1B workers at all wage levels.

The weighting system assigns multiple lottery entries based on Department of Labor Occupational Employment and Wage Statistics (OEWS) levels:

• Level IV (Expert/Senior): 4 entries — approximately 61% selection probability
• Level III (Experienced): 3 entries — approximately 46% selection probability
• Level II (Qualified): 2 entries — approximately 31% selection probability
• Level I (Entry-level): 1 entry — approximately 15% selection probability

These percentages represent a significant departure from the historical 29.59% average selection rate that applied equally across all wage levels.

Critical Compliance Requirements

Employers must provide accurate wage data, Standard Occupational Classification (SOC) codes, and precise work locations at registration. This information becomes legally binding for the subsequent filing of the petition.

The “Lowest Wage Level” Rule: If multiple employers register the same beneficiary at different wage levels, USCIS assigns that person to the lowest wage level among all registrations. Similarly, if one employer registers a beneficiary for multiple worksites or positions, the lowest applicable wage level determines the number of lottery entries.

The $100,000 Fee Consideration

Separately, employers should note that selected registrations may trigger the Presidential Proclamation Fee of $100,000 for beneficiaries requiring consular processing or those who have violated status. This fee does not apply to change of status requests from F-1 or other valid non-immigrant categories, nor to H-1B transfers or extensions.

FY 2027 H-1B Cap Timeline and Action Items

• Now through March 3: Identify candidates, finalize job descriptions, confirm SOC codes, and determine accurate OEWS wage levels
• March 4-19: Submit registrations through USCIS online accounts ($215 per registration)
• By March 31: USCIS sends selection notifications
• April-June: File complete H-1B petitions for selected registrations (90-day filing window)
• October 1, 2026: Earliest H-1B employment start date for FY 2027 beneficiaries

What Employers Should Do Now

Companies sponsoring H-1B workers for the FY 2027 cap season should immediately:

1. Review compensation structures to determine accurate OEWS wage levels for each position
2. Verify SOC code classifications align with actual job duties
3. Preserve wage data printouts from the exact registration date for petition evidence
4. Create or update USCIS organizational accounts before March 4
5. Assess whether candidates qualify for a change of status to avoid the $100,000 fee

The weighted system does not eliminate lower-wage positions from eligibility. However, employers offering Level I wages face substantially reduced selection odds and should evaluate whether compensation adjustments are feasible or whether alternative visa categories better serve their talent acquisition needs.

Looking Ahead

The final rule was published without modifications despite 2,731 public comments, signaling DHS’s commitment to this framework. While legal challenges remain possible, employers should plan for the weighted selection system to be operational for the March 2026 registration period.

This represents the most significant structural change to H-1B cap allocation since the program’s inception. Precision in wage-level classification and documentation now directly affects selection probability.

If your organization sponsors H-1B employees and needs guidance on wage level strategy, SOC code classification, or navigating the FY 2027 registration process, contact Gunn-Menefee Immigration Lawyers at (502) 236-9900.