The Department of Homeland Security (DHS) has released a new H-1B proposal to overhaul the H-1B cap selection process, moving from a random lottery to a weighted system that aims to prioritize higher-skilled and higher-paid workers in the annual visa allocation.
H-1B Lottery Wage-Based Weighted Selection
The new H-1B proposal would shift the H-1B lottery from a purely random selection to a weighted system that favors higher-paying jobs. An applicant’s chance of being picked would depend on the salary’s official wage level (OEWS); a higher wage level means more entries in the lottery and a greater chance of selection.
The OEWS wage levels are as follows:
- Wage Level I: Entry-level positions
- Wage Level II: Qualified workers
- Wage Level III: Experienced workers
- Wage Level IV: Fully competent workers
During the selection, each unique beneficiary’s registration would be entered into the lottery pool several times, corresponding to their assigned wage level:
- Level I: One entry in the selection pool.
- Level II: Two entries.
- Level III: Three entries.
- Level IV: Four entries.
A key provision of the H-1B proposal aims to ensure program integrity by stating that if a single beneficiary has multiple registrations submitted by different employers, the beneficiary’s weighting in the selection pool would be based on the lowest wage level among all those registrations.
This weighting would apply to both the regular H-1B cap and the advanced degree exemption.
Impact on H-1B Registration
The proposed rule also includes additional requirements for employers at the time of registration. They would need to provide:
- The OEWS wage level
- Standard Occupational Classification (SOC) code,
- and the area of intended employment at the time of registration.
The final, official H-1B petition must have the same information as the initial registration. The salary offered must be equal to or higher than the minimum wage the government has set for that specific job in that location.
The government (USCIS) can deny an application or cancel an approval if they find someone tried to unfairly game the system. For example, they will reject a company that promises a high salary to get selected, but then tries to lower the pay after their beneficiary is selected in the lottery.
Why The New Proposal?
The DHS proposal document directly states that the reason for this change is that the current random lottery does not align with the program’s original intent to bring in highly skilled and highly educated workers. They suggest it has resulted in petitions for lower-paid positions (wage levels I and II) being the most common among H-1B filings.
The agency argues that a weighted, wage-based selection system would:
- Encourage employers to offer higher wages or to petition for positions that require higher skills and are commensurate with higher wage levels.
- Prioritize “the best and the brightest.” The proposal suggests that a higher salary is a good sign of a person’s skill level. By giving an advantage to those with higher pay, they aim to select the most talented people.
- Maintain opportunity for all wage levels. This system increases the probability of selection for higher-paid workers, but it does not eliminate the chances for those at lower pay levels. This is a key difference from a previous, now-canceled rule that would have likely shut out lower-wage applicants altogether.
- Improve program integrity: The rule aims to cut down on misuse of the system. It targets people who try to cheat by submitting multiple baseless applications for the same person or by misrepresenting the details of a job offer to gain an unfair advantage in the selection process.
Feedback Period
Starting September 24, 2025, the public is invited to provide feedback on these proposed changes. You will have a 30-day window to submit your comments. After this period, DHS will review the input and may adjust the proposal before making a final decision.
What Would This Mean For You?
On its face, the rule is a pragmatic response to long-standing criticism of the H-1B lottery’s randomness. By giving preference to higher-paying jobs, the system would, as DHS believes, better align with the program’s goal of attracting the “best and the brightest” and benefiting the U.S. economy.
However, this change may have significant negative impacts. The data shows that a large percentage of H-1B petitions, particularly those from smaller companies, are for entry-level positions (wage levels I and II). By reducing the probability of selection for these roles by an estimated 48%, the rule could make it difficult for U.S. companies to hire recent international graduates.
This could potentially drive new talent away from the U.S. and hinder innovation in sectors reliant on entry-level H-1B talent. The new system also fails to address the core problem of the visa cap itself, a number that has remained stagnant for years despite high demand.