Summary

• The H-1B lottery is no longer random. Starting with the FY 2027 cap season, USCIS will use a wage-based, weighted selection system instead of a purely random lottery.
• Higher wages mean better odds. Registrations tied to higher prevailing wage levels receive multiple entries, significantly increasing their chances of selection.
• All wage levels remain eligible—but not equal. Wage Level 1 roles get one entry, while Wage Level 4 roles get up to four times the selection opportunities.
• Strategic planning is now essential. Salary structure, job location, and early prevailing wage analysis will play a critical role in H-1B success going forward.

For decades, the H-1B visa program has relied on a random lottery to allocate a limited number of visas each year, leaving employers and highly qualified foreign professionals at the mercy of chance. That system is about to change in a major way. USCIS has finalized a new weighted selection process that replaces the purely random lottery with a wage-based system, fundamentally reshaping how H-1B cap cases will be selected beginning with the FY 2027 cap season

This change marks one of the most significant reforms to the H-1B program in years and signals a clear policy shift toward prioritizing higher-skill, higher-paying roles.

What Is Changing?

Under the new rule, USCIS will no longer treat all H-1B registrations equally. Instead, selections will be weighted based on the wage level listed in the Labor Condition Application (LCA). Every registration will still be eligible for selection, but higher wage levels will receive more “entries” in the selection process, significantly increasing the odds of being chosen

In practical terms, this means that an employer offering a higher prevailing wage for a position will have a competitive advantage over employers offering lower wages for similar roles.

How the Weighted Selection System Works

The new system assigns multiple selection chances based on wage level:

• Wage Level 1: 1 entry
• Wage Level 2: 2 entries
• Wage Level 3: 3 entries
• Wage Level 4: 4 entries

As a result, a Wage Level 4 position will have four times the likelihood of selection compared to a Wage Level 1 position. While USCIS has emphasized that all wage levels remain eligible, the message is clear: higher wages mean better odds

Why This Matters

This change fundamentally alters H-1B strategy. Under the old system, employers could register large numbers of candidates with relatively low wages and hope for a favorable lottery result. Under the new framework, low-wage registrations will be at a statistical disadvantage, while employers investing in higher compensation will be rewarded with stronger selection probabilities.

For foreign professionals, this shift places greater emphasis on negotiating salary, understanding prevailing wage classifications, and strategically selecting job locations and roles.

Key Strategic Considerations for Employers and Applicants

• Conduct a Prevailing Wage Analysis Early
  Employers should evaluate wage levels well before the registration period opens. Understanding which wage level a role qualifies for will directly impact selection odds. If a position falls into a lower wage level than expected, employers and candidates may consider whether a salary adjustment is feasible  

• Focus on Base Salary, Not Total Compensation
  USCIS will only consider base salary when determining wage level. Bonuses, stock options, commissions, and other incentives do not count. Structuring compensation with a higher base salary can materially improve selection chances under the new system  

• Location Matters More Than Ever
  Prevailing wages vary significantly by geographic area. A salary that qualifies as Wage Level 2 in a major city like New York may qualify as Wage Level 4 in a less populated area. Employers with flexible work locations should factor geography into their H-1B planning to maximize selection odds  

Final Takeaway

The new wage-based H-1B selection process transforms the program from a game of chance into a system that rewards higher wages and higher-skill roles. Employers and foreign professionals who plan early, understand prevailing wages, and structure compensation strategically will be best positioned to succeed under the new rules.