• Insights

DHS Issues Final Rule to Replace Random H-1B Cap Lottery with Selection Process Based on Wage Level

January 7, 2021

insight-news-default

Country / Territory

  • United StatesUnited States

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a Glance

  • The Department of Homeland Security has finalized a regulation that will supplant the random, computerized H-1B lottery with a selection process based on the Department of Labor’s wage level system.
  • Under the regulation, H-1B visa numbers will be allocated according to salary levels, giving priority to those earning the highest salaries in their respective occupations and geographic areas of employment. 
  • The final rule is set to take effect 60 days from publication, in time for the Fiscal Year 2022 cap filing season this spring. The rule could, however, be placed on hold by the incoming Biden Administration as it reviews this and other rules finalized in the last days of the Trump Administration. The regulation could also be challenged in federal court.

The issue

On January 8, the Department of Homeland Security (DHS) will publish a final rule that would largely replace its random, computerized H-1B cap lottery with a system that allocates H-1B visa numbers according to the Department of Labor’s Occupational Employment Statistics (OES) four-level wage system. The final rule will give priority in the H-1B selection process to foreign nationals whose offered salary falls in the highest wage level for their occupation and geographic area. It will not change the order of selection between the regular cap and the advanced degree exemption. The agency has made an advance copy of the final rule available.

The rule is scheduled to take effect 60 days from publication, and is intended to be in place for the Fiscal Year 2022 H-1B cap season this spring. However, it is possible that the Biden Administration may pause this and other forthcoming Trump Administration rules in order to provide the new administration with time to review their contents and determine whether they will move forward. 

A closer look at the revised selection process

Under the final rule, DHS would largely discontinue the computerized H-1B cap lottery selection process and replace it with a wage-level-based allocation process. A first allocation would distribute H-1B numbers under the 65,000 standard cap, followed by a second allocation that would distribute H-1B numbers under the 20,000 advanced degree cap. Distribution would occur as follows:

  • Allocation of H-1B quota numbers would be based on the highest OES prevailing wage level that the offered wage equals or exceeds, starting with level IV, and then continuing to select cases in descending order from OES wage levels III, II and I.
  • Where an offered wage is lower than the OES wage level I because a private wage survey is used, USCIS will rank the registration in the same category as OES wage level I.
  • If the beneficiary will work in multiple locations, USCIS will rank the filing according to the lowest corresponding OES wage level that the offered wage will equal or exceed.
  • Where there is no available OES prevailing wage information for the offered position, USCIS will rank the filing based on the OES wage level that corresponds to the requirements of the position.
  • A computerized lottery would be used if the number of registrations for a specific wage level exceeded the number of H-1B cap slots available.

 

In preparation for the rule, DHS is currently revising its online H-1B cap registration form to request information on the OES wage level associated with the offered wage and position. These changes would become effective upon implementation of the final rule. OES wage information provided in the H-1B registration would be compared to any H-1B petition filed in connection with that registration to ensure that the petitioning employer is adhering to the wage level it designated.

What is next for the rule

The Trump Administration intends the rule to take effect in time for the FY 2022 cap season beginning this spring, but it is not clear whether the rule will take effect at that time. The Biden Administration could place the allocation rule – along with other regulations finalized during the last days of the Trump Administration – on hold in order to review its contents and determine whether it should take effect. (The incoming Biden Administration has expressed support for the concept of H-1B cap allocation based on wage level.) It is also possible that the allocation regulation will be challenged in federal court. If the rule is ultimately implemented for the FY 2022 cap season, USCIS is expected to publish instructions for stakeholders on how it will implement the rule in the H-1B registration system.  

Fragomen is closely following the implementation of this rule and will provide updates.

This alert is for informational purposes only. If you have any questions, please contact the immigration professional with whom you work at Fragomen.

Country / Territory

  • United StatesUnited States

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Citeline: The People Behind The Pipeline: How The Global Race For Talent Is Reshaping Pharma

Partners Rajiv Naik and Hyla Kaplan Rosenberg explore how global talent policies are reshaping the biopharma industry.

Learn more

Video

Healthcare Horizons: Open Enrollment - a J-1 Trap? | #MobilityMinute

Counsel Christopher L. Wendt discusses why J-1 exchange visitors should carefully evaluate health insurance options during open enrollment and how a proposed Department of State rule could increase the consequences of selecting coverage that does not meet applicable requirements.

Learn more

Fragomen news

2026 年9月アメリカ移民法ダイジェストLearn more

Media mentions

Scottish Legal News: Scotland Needs Immigration Rules Built for Scotland’s Economy

Director Kelly Hardman examines proposals for a more tailored immigration framework in Scotland that reflects the country’s economic, workforce and demographic needs.

Learn more

Media mentions

Veranda: Want to Get a Second Passport? Here Are the 3 Universal Rules You Need to Know

Practice Leader Olga Nechita outlines common pathways to obtaining a second passport and key considerations for prospective applicants.

Learn more

Blog post

Malta Citizenship by Merit and Vision 2050: Who May Qualify and What Contributions Matter?

Director Isobel Neilson and Manager Sophie Jo Wasson examine how Malta’s Citizenship by Merit framework considers exceptional achievement and contribution alongside the country’s long-term priorities under Vision 2050, and what applicants should consider when developing a credible case.

Learn more

Media mentions

People Management: UK Right to Work Check Changes: What Businesses Need to Know

Partner Naomi Goldshtein discusses how new UK right to work requirements extend beyond direct employees and the steps businesses should take to understand and manage workforce compliance.

Learn more

Blog post

The Dutch-American Friendship Treaty at 70: How “Friendly” is it in Practice?

Partners Aviva Meerschwam and Christine Sullivan, Senior Associate Tuğba Özyakup and Junior Immigration Consultant Gabriela Gonzalez examine how the Dutch-American Friendship Treaty operates in the Netherlands and the US, and what the differences mean for entrepreneurs, investors and businesses pursuing transatlantic growth.

Learn more

Awards

Fragomen Named a Top 10 Finalist for the 2026 Cartus Masters Cup

Fragomen is a Top 10 finalist for the 2026 Cartus Masters Cup, Cartus’ highest supplier honor recognizing exceptional service, collaboration, innovation and commitment to clients and relocating employees.

Learn more

Media mentions

SHRM: Proposed $103,265 H-1B Is Changing Talent Acquisition Strategy

Partner Bo Cooper discusses the proposed $103,265 H-1B fee, potential legal challenges and its broader implications for employers and high-skilled immigration.

Learn more

Media mentions

Business Insider: The Hidden Sacrifices of Chasing an H-1B Career in America

Partner Aaron Blumberg discusses how proposed changes to the H-1B program could affect workers facing layoffs and families navigating dependent visa status.

Learn more

Blog post

Permanent Residence in Germany: Why Eligible Foreign Nationals Should Consider Applying Early

Senior Associate Arta Djahanschiri outlines the principal pathways to permanent residence in Germany, the flexibility and security the status can provide and why eligible foreign nationals should consider applying early.

Learn more

Media mentions

Citeline: The People Behind The Pipeline: How The Global Race For Talent Is Reshaping Pharma

Partners Rajiv Naik and Hyla Kaplan Rosenberg explore how global talent policies are reshaping the biopharma industry.

Learn more

Video

Healthcare Horizons: Open Enrollment - a J-1 Trap? | #MobilityMinute

Counsel Christopher L. Wendt discusses why J-1 exchange visitors should carefully evaluate health insurance options during open enrollment and how a proposed Department of State rule could increase the consequences of selecting coverage that does not meet applicable requirements.

Learn more

Fragomen news

2026 年9月アメリカ移民法ダイジェストLearn more

Media mentions

Scottish Legal News: Scotland Needs Immigration Rules Built for Scotland’s Economy

Director Kelly Hardman examines proposals for a more tailored immigration framework in Scotland that reflects the country’s economic, workforce and demographic needs.

Learn more

Media mentions

Veranda: Want to Get a Second Passport? Here Are the 3 Universal Rules You Need to Know

Practice Leader Olga Nechita outlines common pathways to obtaining a second passport and key considerations for prospective applicants.

Learn more

Blog post

Malta Citizenship by Merit and Vision 2050: Who May Qualify and What Contributions Matter?

Director Isobel Neilson and Manager Sophie Jo Wasson examine how Malta’s Citizenship by Merit framework considers exceptional achievement and contribution alongside the country’s long-term priorities under Vision 2050, and what applicants should consider when developing a credible case.

Learn more

Media mentions

People Management: UK Right to Work Check Changes: What Businesses Need to Know

Partner Naomi Goldshtein discusses how new UK right to work requirements extend beyond direct employees and the steps businesses should take to understand and manage workforce compliance.

Learn more

Blog post

The Dutch-American Friendship Treaty at 70: How “Friendly” is it in Practice?

Partners Aviva Meerschwam and Christine Sullivan, Senior Associate Tuğba Özyakup and Junior Immigration Consultant Gabriela Gonzalez examine how the Dutch-American Friendship Treaty operates in the Netherlands and the US, and what the differences mean for entrepreneurs, investors and businesses pursuing transatlantic growth.

Learn more

Awards

Fragomen Named a Top 10 Finalist for the 2026 Cartus Masters Cup

Fragomen is a Top 10 finalist for the 2026 Cartus Masters Cup, Cartus’ highest supplier honor recognizing exceptional service, collaboration, innovation and commitment to clients and relocating employees.

Learn more

Media mentions

SHRM: Proposed $103,265 H-1B Is Changing Talent Acquisition Strategy

Partner Bo Cooper discusses the proposed $103,265 H-1B fee, potential legal challenges and its broader implications for employers and high-skilled immigration.

Learn more

Media mentions

Business Insider: The Hidden Sacrifices of Chasing an H-1B Career in America

Partner Aaron Blumberg discusses how proposed changes to the H-1B program could affect workers facing layoffs and families navigating dependent visa status.

Learn more

Blog post

Permanent Residence in Germany: Why Eligible Foreign Nationals Should Consider Applying Early

Senior Associate Arta Djahanschiri outlines the principal pathways to permanent residence in Germany, the flexibility and security the status can provide and why eligible foreign nationals should consider applying early.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
October 6, 2026 | Japan, United States2026 年9月アメリカ移民法ダイジェスト
October 7, 2026 | United Kingdom, United StatesCiteline: The People Behind The Pipeline: How The Global Race For Talent Is Reshaping Pharma
October 7, 2026 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
October 7, 2026 | TanzaniaTanzania: Compulsory Insurance for Visitors Forthcoming
October 7, 2026 | United StatesUnited States: DHS Proposes $70,000 Fee for Initial OPT and $30,000 Fee for Subsequent OPT Periods
October 6, 2026 | Japan, United States2026 年9月アメリカ移民法ダイジェスト
October 7, 2026 | United Kingdom, United StatesCiteline: The People Behind The Pipeline: How The Global Race For Talent Is Reshaping Pharma
October 7, 2026 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
October 7, 2026 | TanzaniaTanzania: Compulsory Insurance for Visitors Forthcoming
October 7, 2026 | United StatesUnited States: DHS Proposes $70,000 Fee for Initial OPT and $30,000 Fee for Subsequent OPT Periods
October 6, 2026 | Japan, United States2026 年9月アメリカ移民法ダイジェスト
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.