• Insights

DHS Proposal Seeks H-1B Cap Selection Process Based on Wage Level

October 29, 2020

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 is proposing a regulation that would supplant the random, computerized H-1B lottery with a selection process based on the Department of Labor’s wage level system.
  • If the rule is finalized as proposed, USCIS would allocate H-1B visa numbers according to salary levels, giving priority to those earning the highest salaries in their respective occupations and geographic areas of employment. 
  • Though it takes several months to finalize a final rule, DHS aims to have the new selection in place by the Fiscal Year 2022 cap filing season.

The issue

The Department of Homeland Security (DHS) is proposing a regulation that seeks to replace its random, computerized H-1B lottery with a system that allocates H-1B visa numbers according to the Department of Labor’s four-level wage system. The proposed rule, which is expected to be published in the Federal Register in the coming days, will give priority in the H-1B selection process to foreign nationals whose offered salary falls in the highest level of their occupation. 

The forthcoming proposal is the latest effort by the Trump Administration to restrict the H-1B program.  Earlier this month, the Department of Labor and DHS fast-tracked two rules related to this effort. The DOL rule, which took effect on October 8, significantly increased Occupational Employment Statistics (OES) prevailing wage levels for the H-1B program. Its companion DHS rule, which will take effect on December 7, will tighten the definition of “specialty occupation,” limit third-party placement H-1B validity to one year, and reimpose contract and itinerary requirements that had been rescinded earlier this year, among other changes. 

The proposed regulation is expected to be published for public feedback in the coming days. Comments will be accepted for 30 days on the proposed rule and 60 days on the proposed changes to related USCIS forms, including the H-1B cap registration form. The agency has made an advance copy of the proposal available here.

A closer look at the proposed selection process

If the rule is finalized as proposed, it would discontinue the computerized H-1B 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 advance 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 1 because a private wage survey is used, USCIS would rank the registration in the same category as OES wage level 1.
  • If the beneficiary will work in multiple locations, USCIS would 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.

 

What is next for the proposal

After the rule is published in the Federal Register, the public will have 30 days to comment on the rule and 60 days to comment on related forms. DHS will then review the feedback and prepare to issue a final rule in the Federal Register. Some aspects of the rule could be revised based on public feedback. There is no set timeframe for publication of a final rule, and while the process frequently takes several months, DHS has indicated that it hopes to have it in place by this coming spring when the Fiscal Year 2022 cap lottery will take place. However, the prospects for the rule may depend on the outcome of the U.S. presidential election.

Comments from business communities will be important to make the agency aware of the impact of the rule on U.S. competitiveness in the competition for global talent. If your organization wishes to comment on the proposed rule, please contact your designated Fragomen professional or the firm’s Government Strategies and Compliance Group.

Fragomen is closely following the implementation of this proposal 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

Blog post

UK Budget 2026: What the Government’s Immigration Plans Mean for Employers

In a new blog, UK Government Affairs Strategy Director Shuyeb Muquit examines what this direction could mean for employers, including why access to international talent may increasingly be considered alongside investment, productivity, innovation, regional growth and long-term workforce development.

Learn more

Video

UAE – Demographic Diversity Requirements | #MobilityMinute

The UAE’s demographic diversity requirements are designed to encourage a more diverse workforce among companies operating in the mainland jurisdiction. In this Mobility Minute, Manager Devika Thamattat explains the requirements, potential consequences of noncompliance and steps employers can take to help maintain the required nationality balance.

Learn more

Media mentions

Global Mobility Lawyer: Proposed H-1B Changes Could Increase Hiring Costs for Visa-Dependent Employers

Partner K. Edward Raleigh explains how proposed changes to the H-1B salary exemption threshold could affect US employers’ hiring practices and why enactment this year remains unlikely.

Learn more

Video

Family Reunification in Germany: Who Qualifies and How Does It Work?

In this video, Fragomen Senior Manager Katharina Vorländer explains who may qualify for family reunification in Germany, the requirements that may apply, employment and education rights for accompanying family members and important considerations when preparing an application.

Learn more

Media mentions

Dziennik Gazeta Prawna: Nielegalne zatrudnienie cudzoziemca? Pracodawca może stracić więcej niż pieniądze

Partner Karolina Schiffter discusses how digitalization is transforming immigration procedures in Poland and how law firms can adapt to evolving client expectations.

Learn more

Blog post

Who Qualifies for Costa Rica Permanent Residence?

Immigration Supervisor Michael Salas Guzman explains who may qualify for permanent residence in Costa Rica, the key benefits of permanent status and important considerations for foreign nationals planning to live and work in the country long term.

Learn more

Media mentions

BioSpace: As H-1B Visa Changes Keep Coming, Biopharmas Adjust Hiring Approach

Partner Audrea Golding discusses how H-1B visa changes, including the $100,000 fee and weighted selection process, are affecting biopharma hiring and access to global talent.

Learn more
Generic Insights

Blog post

EU Visa Code Reform: Priorities for Better Schengen Business Travel

Senior Counsel Jo Antoons and Immigration Supervisor Elisabeth Kamm outline Fragomen Consulting Europe’s recommendations for EU Visa Code reform, including more consistent business travel rules, improved visa appointment access, greater transparency and a potential Schengen-wide trusted-employer framework.

Learn more

Blog post

Argentina Announces New Citizenship by Investment Programme: What Investors Need to Know

In a new blog, Manager Sophie Jo Wasson and Country Manager María Inés Menvielle explore what is known so far, the potential mobility benefits of Argentine citizenship and what prospective applicants should consider as implementation develops.

Learn more

Media mentions

Conexão Ásia: Além da China, profissionais das Filipinas, Índia, Japão e Bangladesh se destacam na imigração laboral asiática para o Brasil

Managing Director Diogo Kloper examines how immigration trends reveal the diverse economic ties between Brazil and Asia and the role of international mobility in supporting business growth.

Learn more

Media mentions

AILA Law Journal: Administrative Proxies in Immigration Adjudication

Partner David Grunblatt examines how USCIS uses administrative proxies in immigration adjudication and explains why these tools must support, rather than replace, statutory standards and individualized legal analysis.

Learn more

Blog post

International Talent in the Netherlands: Building a Talent Pipeline Without Losing Sight of Compliance

Manager Cherida Hooijer and Immigration Assistant Manager Kaatje Droesbeke examine how employers in the Netherlands can build an international student-to-graduate talent pipeline while managing the immigration and employment compliance requirements that apply at each stage.

Learn more

Blog post

UK Budget 2026: What the Government’s Immigration Plans Mean for Employers

In a new blog, UK Government Affairs Strategy Director Shuyeb Muquit examines what this direction could mean for employers, including why access to international talent may increasingly be considered alongside investment, productivity, innovation, regional growth and long-term workforce development.

Learn more

Video

UAE – Demographic Diversity Requirements | #MobilityMinute

The UAE’s demographic diversity requirements are designed to encourage a more diverse workforce among companies operating in the mainland jurisdiction. In this Mobility Minute, Manager Devika Thamattat explains the requirements, potential consequences of noncompliance and steps employers can take to help maintain the required nationality balance.

Learn more

Media mentions

Global Mobility Lawyer: Proposed H-1B Changes Could Increase Hiring Costs for Visa-Dependent Employers

Partner K. Edward Raleigh explains how proposed changes to the H-1B salary exemption threshold could affect US employers’ hiring practices and why enactment this year remains unlikely.

Learn more

Video

Family Reunification in Germany: Who Qualifies and How Does It Work?

In this video, Fragomen Senior Manager Katharina Vorländer explains who may qualify for family reunification in Germany, the requirements that may apply, employment and education rights for accompanying family members and important considerations when preparing an application.

Learn more

Media mentions

Dziennik Gazeta Prawna: Nielegalne zatrudnienie cudzoziemca? Pracodawca może stracić więcej niż pieniądze

Partner Karolina Schiffter discusses how digitalization is transforming immigration procedures in Poland and how law firms can adapt to evolving client expectations.

Learn more

Blog post

Who Qualifies for Costa Rica Permanent Residence?

Immigration Supervisor Michael Salas Guzman explains who may qualify for permanent residence in Costa Rica, the key benefits of permanent status and important considerations for foreign nationals planning to live and work in the country long term.

Learn more

Media mentions

BioSpace: As H-1B Visa Changes Keep Coming, Biopharmas Adjust Hiring Approach

Partner Audrea Golding discusses how H-1B visa changes, including the $100,000 fee and weighted selection process, are affecting biopharma hiring and access to global talent.

Learn more
Generic Insights

Blog post

EU Visa Code Reform: Priorities for Better Schengen Business Travel

Senior Counsel Jo Antoons and Immigration Supervisor Elisabeth Kamm outline Fragomen Consulting Europe’s recommendations for EU Visa Code reform, including more consistent business travel rules, improved visa appointment access, greater transparency and a potential Schengen-wide trusted-employer framework.

Learn more

Blog post

Argentina Announces New Citizenship by Investment Programme: What Investors Need to Know

In a new blog, Manager Sophie Jo Wasson and Country Manager María Inés Menvielle explore what is known so far, the potential mobility benefits of Argentine citizenship and what prospective applicants should consider as implementation develops.

Learn more

Media mentions

Conexão Ásia: Além da China, profissionais das Filipinas, Índia, Japão e Bangladesh se destacam na imigração laboral asiática para o Brasil

Managing Director Diogo Kloper examines how immigration trends reveal the diverse economic ties between Brazil and Asia and the role of international mobility in supporting business growth.

Learn more

Media mentions

AILA Law Journal: Administrative Proxies in Immigration Adjudication

Partner David Grunblatt examines how USCIS uses administrative proxies in immigration adjudication and explains why these tools must support, rather than replace, statutory standards and individualized legal analysis.

Learn more

Blog post

International Talent in the Netherlands: Building a Talent Pipeline Without Losing Sight of Compliance

Manager Cherida Hooijer and Immigration Assistant Manager Kaatje Droesbeke examine how employers in the Netherlands can build an international student-to-graduate talent pipeline while managing the immigration and employment compliance requirements that apply at each stage.

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 30, 2026 | Republic of the PhilippinesPhilippines: Amendments to Simplify and Streamline Labor Market Test, Other Alien Employment Permit Processes
October 30, 2026 | ChinaChina: APEC Business Travel Card Validity Extended
October 30, 2026 | IrelandIreland: Employment Permits Portal Offline Following Unauthorized Activity
October 30, 2026 | IrelandIreland: Short Stay Visa Waiver Programme Extended
October 30, 2026 | 🌐Minimum Salary Changes Announced
October 30, 2026 | Republic of the PhilippinesPhilippines: Amendments to Simplify and Streamline Labor Market Test, Other Alien Employment Permit Processes
October 30, 2026 | ChinaChina: APEC Business Travel Card Validity Extended
October 30, 2026 | IrelandIreland: Employment Permits Portal Offline Following Unauthorized Activity
October 30, 2026 | IrelandIreland: Short Stay Visa Waiver Programme Extended
October 30, 2026 | 🌐Minimum Salary Changes Announced
October 30, 2026 | Republic of the PhilippinesPhilippines: Amendments to Simplify and Streamline Labor Market Test, Other Alien Employment Permit Processes
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.