How wage-based selection, higher fees, and tighter scrutiny are reshaping H-1B strategy for employers.
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In the past six months, the U.S. government has introduced several regulatory changes that change how H-1B visas are allocated, how much they cost, and how closely employers will be scrutinized.
The biggest change is the move away from a purely random lottery toward a weighted, wage-based system. But that’s only part of the story. Rising fees, stricter compliance expectations, and growing interest in alternatives like the O-1 visa mean that applying for the H-1B visa has evolved into a strategic function that sits at the intersection of compensation and talent planning.
Below are the five biggest ways the H-1B lottery is changing in 2026 and how employers can prepare for what’s coming next.
The most transformative change to the H-1B program is the introduction of a weighted, wage-based lottery system, scheduled to take effect on February 27, 2026. Under this model, selection is no longer purely random. Instead, each candidate’s odds are directly tied to the wage level associated with their job offer.
Here’s how the new H-1B weighting works:
In practice, this means two candidates are no longer equal in the eyes of the lottery. A senior engineer offered a Level 4 wage will have four times the odds of selection compared to an entry-level candidate at Level 1.
DHS’s goal is to prioritize higher-paid, more specialized roles and discourage use of the H-1B program for lower-wage positions.
For employers, this represents a fundamental shift. Compensation decisions now directly influence immigration outcomes. Companies that historically relied on Level 1 or Level 2 wages to sponsor early-career talent will face much steeper odds, while those willing to pay at Level 3 or 4 will gain a competitive advantage.
Another critical change is further clarification of how multiple registrations for the same individual are treated. While multiple registrations are still allowed, the system looks at all offers and assigns the individual the lowest wage level among them.
This has major strategic implications for H-1B employers. For example:
In prior years, multiple registrations could increase an individual’s odds. But now, employers need to be far more coordinated, especially in competitive hiring markets where candidates may entertain multiple offers.
As a result, some companies may need to rethink whether and when to enter the lottery for candidates who are actively interviewing elsewhere.
Beyond selection mechanics, the financial cost of participating in the H-1B program has increased dramatically.
As of late 2025, a new $100,000 fee applies to certain H-1B petitions, primarily those involving consular processing for beneficiaries outside the United States. This fee alone is higher than all other immigration expenses combined and will likely force employers to rethink overseas hiring strategies.
Premium processing is also getting more expensive. As of March 1, 2026, the premium processing fee for Form I-129 (used for H-1B petitions) increases from $2,805 to $2,965. While the increase may seem incremental, it adds up quickly for companies filing multiple petitions.
USCIS has already signaled that it intends to increase scrutiny of H-1B candidates and their applications. At the end of last year, H-1B applicants began seeing their consular appointments rescheduled as the State Department implemented a policy to vet social media accounts, which caused businesses to delay the start dates of H-1B workers.
Another area of particular focus will be wage manipulation. Roles that appear to be “up-leveled” on paper—without corresponding changes in duties, seniority, or responsibilities—are likely to face audits and requests for evidence (RFEs). Employers may need to provide more detailed wage data validation earlier in the process than in prior years.
Given higher costs, lower odds for entry-level roles, and increased scrutiny, many employers are expanding their focus beyond the H-1B altogether.
Preparation now starts earlier than it used to. Employers should conduct early wage level analyses, reviewing SOC codes and local prevailing wages before registration opens. Deciding between a Level 2 and Level 3 at the last minute is no longer viable.
Job descriptions also matter more than ever. A generic title like “software engineer” may not be sufficient at higher wage levels. Employers must document complex, senior-level duties that clearly justify a Level 3 or 4 salary. Precision in SOC code selection is equally critical; mismatches between internal titles and DOL classifications are a common trigger for RFEs.
For many candidates—especially those nearing the end of OPT or STEM-OPT—premium processing remains essential. The 15-business-day adjudication clock is often the difference between uninterrupted employment and forced downtime. Employers should budget for the higher fee now and remember that cap-subject petitions cannot be filed until April 1 at the earliest.
Perhaps the biggest strategic shift is the growing use of alternatives that bypass the lottery entirely. The O-1 visa, for individuals of extraordinary ability, has no annual cap and no lottery. Unlike the H-1B’s wage-driven selection, the O-1 is merit-based.
For senior designers, researchers, engineers, or founders with strong portfolios, publications, or industry recognition, the O-1 may be a better option than an H-1B. Other alternatives include:
The changes coming in 2026 make one thing abundantly clear: the H-1B process is no longer a game of chance. The program has evolved into a system that rewards higher wages, deeper preparation, and strategic planning.
Companies that align their salary bands, job architectures, and long-term hiring plans with immigration realities will still be better positioned to secure global talent. Those that rely on luck, low wages, or outdated assumptions will increasingly need to lean on alternatives like the O-1 or TN.
If you’re concerned about how these changes will impact your business this year, request a consultation with an experienced immigration attorney at Manifest Law today to understand your best options.
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