USCIS has finalized a major restructuring of the H-1B cap selection process. In the upcoming FY 2027 H-1B cap season, the traditional random lottery will be replaced with a wage weighted selection system, giving candidates with higher DOL prevailing wage levels (Level I–IV) proportionally greater odds of selection.
The Department of Homeland Security (DHS) published the rule in the Federal Register on Dec. 29, 2025, with an effective date of Feb. 27, 2026. The FY 2027 H-1B cap registration period opens on March 4, 2026, and runs through March 19, 2026. USCIS should make the selections by March 31, 2026, and the FY 2027 H-1B cap petitions filing period will run from April 1, 2026, through June 30, 2026.
As such, employers will have a relatively short time period to enter their prospective H-1B employees into the drawing. Companies may wish to assess their affected employee population, prepare data for immediate entry once the registration period opens, and assemble all relevant documentation to enhance compliance and minimize the risk of adverse government action.
This GT Alert summarizes the key changes, risks, and shares employer considerations.