by James W. Ward, J.D.; Employment Law Subject Matter Expert/Legal Writer and Editor, CalChamber
The U.S. Citizenship and Immigration Services (USCIS) announced that the H-1B cap initial registration period for fiscal year (FY) 2027 begins at 12 p.m. (EST) on March 4, 2026, and will run through 12 p.m. (EST) on March 19, 2026. During that period, employers intending to hire individuals through the H-1B visa program will have the opportunity to register for the selection process.
As employers prepare to register, however, they should be aware of some recent changes made to the H-1B visa program, including a new $100,000 fee on certain petitions and new regulations adopting a wage-weighted lottery selection system.
The H-1B visa program allows employers in the United States to temporarily employ highly skilled foreign workers in occupations that require the application of highly specialized knowledge and bachelor’s degree or higher in a directly related specialty, or its equivalent. Examples of specialty occupations include mathematics, engineering, architecture, physical and social sciences, medicine, law, and management, among many others.
The program is intended to help employers who cannot find the needed skills and abilities within the U.S. workforce by allowing the temporary employment of qualified individuals not otherwise authorized to work in the United States.
The number of H-1B visas issued annually is limited to 65,000, plus an additional 20,000 for U.S. advanced degree holders. Due to the limited number, the USCIS conducts a lottery selection process. The USCIS opens a brief window each year, during which employers must submit an electronic registration for each individual (referred to as a beneficiary) they intend to hire.
The USCIS then runs the H-1B selection process to determine which registrations advance to the next stage. Employers with selected candidates are electronically notified, after which they must prepare and submit a complete H-1B cap-subject petition within the filing period indicated in the notice, which will be at least 90 days.
For FY 2027, the cap registration period opens on March 4, 2026, and will run until March 19, 2026. However, the rules around the lottery selection process will be different this year.
For several years, the USCIS used a random selection lottery process. Registrants submitted a simple electronic filing for the lottery and, if selected, they submitted their full petition. On December 23, 2025, however, the Department of Homeland Security (DHS) announced that it was amending regulations governing the H-1B visa selection process.
Initially proposed on September 24, 2025, the DHS published its final rule on December 29, 2025, moving from a random selection lottery to a weighted system. The regulation is effective February 27, 2026, ahead of the FY 2027 H-1B cap registration season.
The new selection process doesn’t eliminate the lottery entirely, but it weighs the entries differently based on wage levels. During registration, each beneficiary will be assigned a wage level (which is not the same as actual salary), based on Occupational Employment and Wage Statistics and Standard Occupational Classification codes from the U.S. Department of Labor. Based on the assigned wage levels, beneficiaries will be entered into the selection pool as follows:
The wage levels do not reflect actual salaries. They are based on the Department of Labor’s prevailing wage system, corresponding to job seniority and complexity.
Employers planning to take advantage of the H-1B program should take this new weighted system into account as they prepare for registration.
The H-1B lottery selection process changes are only one part of the federal administration’s broader efforts to reform the H-1B program. On September 29, 2025, President Trump issued the “Restriction on Entry of Certain Nonimmigrant Workers” proclamation in response to what the administration describes as “severe harms that the large-scale abuse of [the H-1B visa] program has inflicted on our economic and national security demands.”
The proclamation requires employers to pay a $100,000 fee before filing their H-1B petitions. The Secretary of Homeland Security can make exceptions to this requirement for individual workers or all workers in a company or industry if doing so would be in the national interest and not pose a threat to the security or welfare of the United States.
The White House and various government agencies issued clarifying guidance following the proclamation.
On September 21, 2025, the White House issued an H-1B FAQ, clarifying that the $100,000 fee is a one-time fee for submission of a new H-1B petition. The FAQ also states that the proclamation:
At the same time, the USCIS issued a memorandum and an H-1B FAQ confirming the above. The proclamation will also apply to petitions submitted as part of the 2026 H-1B lottery and will not impact foreign nationals whose petitions were filed or approved prior to the proclamation’s date or holders of validly issued H-1B visas.
The proclamation was quickly met with multiple legal challenges. On December 23, 2025, a federal district court denied a request to strike down the rule. The court granted summary judgment in favor of the federal government, concluding:
That case has been appealed to the D.C. Circuit Court of Appeals.
Two additional lawsuits are also challenging the new fee, for which no rulings have been issued.
In the last year, the federal administration has made significant changes to the H-1B program. Employers intending to use the H-1B visa program should carefully review these developments and work with legal counsel to determine how they impact their workforce going forward, including identifying H-1B candidates, determining the correct wage levels for positions and determining whether the new fee applies.
Additionally, employers will want to keep a close eye on the lawsuits challenging the changes to the program and should consult with legal counsel on the impact of any court rulings on the H-1B program.
Lastly, employers should regularly review USCIS resources for the most recent guidance on the registration process and other H-1B developments.