Preparing for FY2027 H-1B Registration: What’s New?
Preparing for FY2027 H-1B Registration: What’s New?
The FY2027 H-1B lottery season is approaching, with registration expected to open in early March. This cap season presents new challenges for employers and foreign nationals, such as a newly introduced Wage-Weighted Selection System and the $100,000 H-1B Fee Rule.
Wage-Weighted Selection System
In December 2025, DHS announced a shift from a purely random H-1B lottery to a wage-weighted selection system. For each beneficiary registered, employers will need to provide the Department of Labor (DOL) prevailing wage level that corresponds to the salary offered.
Registrations will receive multiple entries based on the wage level:
- Level 4: four entries
- Level 3: three entries
- Level 2: two entries
- Level 1: one entry
Beneficiaries offered a higher level of wages will have higher odds of selection.
The $100,000 Fee Rule
Effective September 2025, employers filing an H-1B visa petition on behalf of a foreign national abroad must pay an additional $100,000. Several lawsuits challenging the legality of this fee have been filed, but there have been no decisions yet.
This fee does not apply to beneficiaries seeking a change of status within the U.S. (e.g., F-1 to H-1B). However, if a beneficiary is located outside the United States, the petition would have to be filed via consular processing, where the employer will either need to pay the $100,000 fee or obtain a national interest exception.
Travel Bans and Visa Restrictions
As of January 2026, the current administration has imposed travel bans and visa restrictions on several countries. This may affect the ability of certain H-1B beneficiaries to enter or reenter the United States.
Additionally, USCIS has announced a pause on the adjudication of any benefit requests filed by or on behalf of foreign nationals born in a country on the travel ban list. This includes H-1B and H-4 change of status applications, among others. For more information on the travel ban and the affected countries, please see the official White House statement on restrictions and limits for foreign nationals.
FAQs for FY2027 H-1B Registration
Does the wage-weighted system eliminate the annual H-1B cap?
No. The statutory annual cap of 65,000 regular H-1B visas, plus 20,000 advanced degree exemptions, remains unchanged. The wage-weighted system affects how registrations are selected, not how many visas are available.
How is the prevailing wage level determined?
The prevailing wage level depends on the job’s occupational classification, required education and experience, and work location. Employers typically reference the Department of Labor’s wage data when determining the appropriate level.
Can an employer increase the salary after selection?
Employers may adjust salary offers, but any changes must comply with Labor Condition Application requirements and prevailing wage obligations. Significant changes may require updated filings or amendments.
What happens if the $100,000 fee rule is struck down in court?
If a federal court invalidates the rule, DHS may suspend enforcement or revise the regulation. Until a final decision is issued, employers must comply with the rule as currently implemented.
Do travel bans automatically cancel an approved H-1B petition?
No. An approved petition remains valid. However, visa issuance and entry into the United States may be restricted depending on the beneficiary’s country of birth or nationality and the specific terms of the travel restrictions.
With the changing policies and increasing scrutiny, a proactive approach is key to a successful petition. If you are considering sponsoring employees in the upcoming cap lottery, please contact Pollack, Pollack, Isaac, and DeCicco LLP.
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