H-1B Rules Shift Again: Higher Wages, Higher Costs and What Employers Must Do Now
U.S. employers face a reshaped H‑1B landscape as the federal government rolls out major changes that affect who gets selected, how much filings cost, and how companies plan global hiring. Together, these developments make early planning essential for the FY 2027 H‑1B cap season.
A New Selection Model Replaces the Random Lottery
The Department of Homeland Security (DHS) has replaced the traditional random H‑1B lottery with a weighted selection system that favors higher‑paid, higher‑skilled roles. U.S. Citizenship and Immigration Services (USCIS) will apply this new system to the FY 2027 cap season, with the rule taking effect on Feb. 27.
Under this approach, USCIS will still accept registrations across wage levels, but positions offering higher wages will receive a stronger chance of selection. The agency designed the change to align the H‑1B program with workforce priorities and encourage employers to sponsor advanced, specialized talent.
The statutory cap remains unchanged:
- 65,000 visas under the regular cap
- 20,000 additional visas for candidates with qualifying U.S. advanced degrees
Registration Dates and Process for FY 2027
USCIS has confirmed that the initial H‑1B registration period will open March 4, at noon eastern and close March 19 at noon eastern time. Employers and their representatives must submit registrations through a USCIS online account and pay the required $215 registration fee for each candidate.
The registration step requires only basic employer and beneficiary information, including valid passport details. USCIS will run the weighted selection process after the registration window closes and will notify employers through their online accounts. Only selected registrations may proceed to full H‑1B petition filing.
The $100,000 H‑1B Fee Still Shapes Filing Strategy
Separate from the selection changes, President Trump’s proclamation continues to affect certain H‑1B filings. Employers must pay a $100,000 fee when filing:
- New H‑1B petitions for workers outside the United States who do not already hold valid H‑1B status, or
- Petitions that require consular processing, port‑of‑entry notification, or pre‑flight inspection
USCIS guidance confirms that the fee does not affect:
- Current H‑1B holders
- Extensions, amendments, or changes of status filed for workers already in valid U.S. status, as long as the employee does not travel abroad during adjudication
USCIS may allow limited exceptions in cases that meet strict national‑interest criteria, but the agency applies those exceptions narrowly and at its discretion.
Why These Changes Matter for Employers
Taken together, these developments increase both the cost and complexity of H‑1B hiring. Employers now need to evaluate roles, wages, and filing pathways earlier than in past years. Companies that rely on entry‑level or mid‑level H‑1B talent may face steeper odds, while employers sponsoring higher‑paid professionals may gain an advantage under the new system.
The changes also arrive alongside broader immigration disruptions, including pauses in immigrant visa issuance at U.S. consulates for certain countries. These overlapping policies can delay start dates, disrupt workforce planning, and affect long‑term retention strategies.
Planning Now Reduces Risk Later
Employers should begin preparing well before the March registration window by:
- Identifying H‑1B candidates early
- Reviewing offered wages and role classifications
- Assessing whether the $100,000 fee could apply
- Coordinating closely with immigration counsel on filing strategy
Early, strategic planning remains the most effective way to manage risk in a rapidly shifting H‑1B environment.
Please contact Brandon Davis, Laura Buck or any member of the Phelps Immigration team if you have questions or need advice or guidance.
