Higher Wage Levels, Better Odds: Understanding the New H‑1B Lottery Rule

Category: Federal & State Compliance

Written by Seyfarth Shaw LLP  on Dec 30, 2025

On December 23, 2025, U.S. Citizenship and Immigration Services (USCIS) finalized a significant regulatory change to the H-1B visa selection process that will take effect starting with the upcoming registration season. This new weighted selection process replaces the longstanding random lottery system with a method that prioritizes higher-skilled and higher-paid foreign workers. The stated rationale for the policy is to better protect American workers’ wages, working conditions, and job opportunities.

The new H-1B weighing system follows the implementation of the $100,000 proclamation fee for new petitions and coincides with signaling from the Department of Labor that adjustments to wage level determinations may be on the horizon.

How Will the Weighted Selection Process Work?

Under the new system, each H-1B registration will be assigned a weight based on the Occupational Employment and Wage Statistics (OEWS) wage level corresponding to the proffered wage for the position. The OEWS wage levels range from Level I (entry-level wages) to Level IV (highest wage level). The higher the wage level, the greater probability of selection, as described below:

  • Registrations at wage level IV will be entered into the selection pool four times;
  • Registrations at wage level III will be entered three times;
  • Registrations at wage level II will be entered two times; and
  • Registrations at wage level I will be entered once.

Each beneficiary will be counted only once, regardless of how many registrations are submitted on their behalf. If multiple registrations exist for the same beneficiary at different wage levels, the lowest wage level will be used.

The new framework will apply to both the H‑1B regular cap of 65,000 visas and the U.S. advanced degree exemption (Master’s cap) of 20,000 visas.

Key Takeaways & Action Items for Employers

  • Selection Probability: The weighted selection process is projected to reduce the selection probability for Level I wage registrations by approximately 48%, while increasing the selection chances for Levels II, III, and IV by 3%, 55%, and 107%, respectively. The rule aims to incentivize employers to offer higher wages and petition for higher-skilled positions.
  • Assess Wage Levels, SOC Codes and Worksite Locations and Audit Early:Employers should review job descriptions for the positions they intend to sponsor early to confirm accurate SOC codes, wage levels, and worksite details. Ensure all information provided during registration matches the subsequent petition. Maintain thorough documentation to support wage levels and job offers, and ensure pay equity across the organization so that U.S. workers are not adversely affected.

Legal challenges to the rule are anticipated, as some may argue DHS is exceeding its statutory authority. Whether an injunction will be granted, and if it would apply nationwide given the recent limitations applied by the U.S. Supreme Court, remains uncertain.