T&R Immigration News Alert

April 2, 2026

USCIS has completed the FY 2027 H‑1B cap lottery selection process. This is the first year where selections were conducted under the new wage‑weighted system and the first year that the $100,000 fee will apply to cap-subject H-1B petitions for beneficiaries outside the U.S. Selection notices are now available, with petition filing open from April 1 through June 30, 2026. In related developments, the Department of Labor has also proposed major increases to prevailing wage levels that could significantly affect future H‑1B and PERM filings.
 

USCIS Completes FY 2027 H-1B Cap Lottery 

 

U.S. Citizenship and Immigration Services (USCIS) announced that it has completed the selection process for the Fiscal Year (FY) 2027 H-1B cap under the new wage-weighted system. This marks the first H-1B cap season conducted under the new wage‑weighted, wage-level-based lottery rule, in effect since February 27, 2026. It is also the first H-1B cap selection where any cap-subject H-1B petitions for beneficiaries outside of the United States would be subject to the $100,000 H-1B fee.

 

Selection notices have been issued to registrant employers and their authorized representatives through USCIS online accounts. For those selected, H-1B petitions can be filed starting April 1, 2026, and must be received by USCIS by June 30, 2026.

 

Key takeaways

 

  • H-1B selection notices are now available in online accounts. Registration statuses include Selected, Denied, Invalidated – failed payment, Deleted, and Submitted; only “Selected” beneficiaries are eligible to have H-1B petitions filed for them.
  • For selected beneficiaries, USCIS will accept FY 2027 cap‑subject H-1B petitions from April 1, 2026, through June 30, 2026, with an earliest start date of October 1, 2026.
  • Petitions must align with the registration details, including OEWS wage level, SOC code, and worksite(s); inconsistencies could trigger RFEs or denials.
  • There appears to be a much higher selection rate this year than in past years, with law firms reporting selection rates of up to 60% or more. The reason for this is likely, in part, due to the $100,000 fee for beneficiaries outside of the United States and employers deciding not to register these beneficiaries in the H-1B lottery.

 

Possibility of a second lottery

 

  • Registrations that remain in “Submitted” status (and are not denied or invalidated) will continue to be eligible for selection if USCIS determines that a second lottery is necessary.
  • Whether a subsequent selection round occurs will depend on (1) how many unique beneficiaries USCIS selected in the initial lottery; and (2) how many cap‑subject petitions for those beneficiaries are actually filed by June 30, 2026, and ultimately approved.
  • In the most recent H-1B cap season prior to FY 2027, USCIS conducted only one selection round, while in FY 2024 and FY 2025 it conducted two rounds, resulting in two separate 90‑day filing periods. It is not yet clear how the new wage‑weighted selection process and the $100,000 consular notification fee will affect filing behavior or the likelihood of a second lottery for FY 2027.

DOL Issues Proposed Rule to Increase Prevailing Wage Levels

 

On March 26, 2026, the U.S. Department of Labor (DOL) issued a notice of proposed rulemaking that would substantially increase government-required minimum wage levels for certain nonimmigrant and immigrant classifications and change how prevailing wages are calculated. This rule would impact employers seeking to hire foreign workers under H-1B, H-1B1, and E-3 visa statuses or seeking to sponsor foreign nationals for labor certification applications (PERM).

 

Overview of the Proposed Rule

 

  • This rule will dramatically increase prevailing wage levels, making it more difficult for employers to meet the wages and sponsor employees.
  • It is a structural wage reset update across all programs.
    • H-1B LCAs: materially higher minimum salaries will be required
    • PERM Prevailing Wage Determinations (PWDs): significantly higher offered wages will be required
    • Direct impact: fewer viable cases at lower wage levels
  • Stated goals: The DOL states that the rule aims to better align prevailing wages with actual market wages for similarly employed U.S. workers, strengthen program integrity, and reduce incentives to use foreign workers as lower-cost labor.

 

Proposed prevailing wage structure

 

DOL uses Occupational Employment and Wage Statistics (OEWS) data to set prevailing wages and currently assigns four wage “levels” based on percentiles of that data. The proposed rule would shift all four levels significantly upward using the same data.

 

Current vs. proposed OEWS percentile mapping:

 

What this means for future H-1B filings 

 

  • Immediate wage inflation: Employers must pay the higher of the actual wage or new prevailing wage. With prevailing wages rising, the required salary for many cases will be forced upward regardless of internal pay structures.
  • Expect more H-1B petition Requests for Evidence (RFEs) or denials based upon coding and wage levels:  The USCIS has updated Form I-129 for filing H-1B petitions to include questions about the offered position's actual minimum requirements.  It is expected that USCIS will use these questions to challenge the coding and wage levels used in the LCA for H-1B petitions, including greater scrutiny of “entry-level” designations.
  • Interaction with H-1B lottery: The H-1B lottery now is based upon a wage-weighted selection process, favoring higher wages. This new DOL rule is a very intentional policy alignment.   
  • Employers should work with their immigration lawyers to determine the impact on their H-1B employees.  

 

What can employers do? 

 

  • Employers who rely on H-1B/PERM applications should submit comments on the proposed rule: The rule is currently in public comment period that will close around May 26, 2026. We encourage employers who rely on H-1B workers to submit comments regarding operational impacts (especially for specific industries, occupations, or geographies) or contact T&R if you would like us to submit comments on your behalf. The DOL must review all comments before issuing a final rule, which could occur as early as 30 days following the comment period.
  • Schedule a call with your attorney: Contact your attorney to discuss immediate strategies for your H-1B employees.

Please contact T&R if you have any questions.