Important Updates
Important Updates
May 22, 2026 | United Arab EmiratesUnited Arab Emirates: Tougher Wage Protection System Rules Forthcoming
May 22, 2026 | United StatesABA Journal: Will US Immigration Policies Create ‘Chilling Effect’ on World Cup?
May 22, 2026 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
May 22, 2026Middle East/Africa: Temporary Ebola-Related Entry Restrictions Introduced
May 22, 2026 | 🌐Minimum Salary Changes Announced
May 22, 2026 | United Arab EmiratesUnited Arab Emirates: Tougher Wage Protection System Rules Forthcoming
May 22, 2026 | United StatesABA Journal: Will US Immigration Policies Create ‘Chilling Effect’ on World Cup?
May 22, 2026 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
May 22, 2026Middle East/Africa: Temporary Ebola-Related Entry Restrictions Introduced
May 22, 2026 | 🌐Minimum Salary Changes Announced
May 22, 2026 | United Arab EmiratesUnited Arab Emirates: Tougher Wage Protection System Rules Forthcoming
Subscribe
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 InsightsVietnamese ImmigrationView 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
  • Vietnamese Immigration
  • 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
  • Insights

United States: DHS Proposes Wage Level-Based Weighted System of H-1B Cap Allocation

September 23, 2025

insight-news-default

Country / Territory

  • United StatesUnited States

Related content

  • Navigating Immigration Under the Second Trump Administration

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related content

  • Navigating Immigration Under the Second Trump Administration

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related content

  • Navigating Immigration Under the Second Trump Administration

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a glance

  • A proposed regulation seeks to change the H-1B cap lottery process to give greater odds of selection to beneficiaries with the highest wages according to the Department of Labor’s four-level prevailing wage system.
  • Under the proposed system, beneficiaries registered for the H-1B cap would be entered into the selection pool in a weighted manner based on the wage offered by their prospective employer. A beneficiary offered a Level 4 wage (the highest level) would be entered into the selection pool four times; a Level 3 beneficiary, three times; a Level 2 beneficiary, two times; and a Level 1 beneficiary, once.
  • DHS will accept public feedback on the proposal for 30 days after the rule is formally published on September 24.
  • The proposed weighted selection system would not take effect until the regulation cleared the federal rulemaking process and was finalized, which typically takes several months. Court challenges to a final rule are possible.

The issue

The Department of Homeland Security (DHS) is seeking to alter the annual computerized H-1B cap lottery system to give an advantage in the selection process to those with the highest wage for their occupation and area of employment corresponding to the Department of Labor’s Occupational Employment and Wage Statistics (OEWS), according to a notice of proposed rulemaking that will be published in the Federal Register on September 24. The proposed rule comes days after President Trump signed a proclamation ordering a $100,000 fee to be imposed on certain H-1B petitions filed on or after September 21, 2025.

DHS will accept public feedback on the proposal for 30 days after publication. The proposal will not become final until the regulation clears the federal rulemaking process.

How a weighted selection system would work

As proposed, the revised method of H-1B quota allocation would be based on the Department of Labor’s OEWS Wage Levels. Beneficiaries registered for the H-1B cap lottery would be entered into the selection pool using a weighted system. Beneficiaries whose offered wage corresponded to Level 4 (the highest tier) of the Department of Labor’s four-level wage structure would be entered into the selection pool four times. A Level 3 beneficiary would be entered three times; a Level 2 beneficiary, two times; and a Level 1 beneficiary, once.

Employers would be required to indicate the appropriate occupational code, OEWS wage level, and area of employment in each candidate’s registration for the H-1B cap lottery. If a beneficiary were selected in the lottery, the employer’s USCIS Form I-129 H-1B petition would need to include documentation showing that the wage level indicated in the registration was appropriate for the occupation. USCIS could deny the petition (or revoke, if already approved) if it determined that the petitioner attempted to unfairly increase the odds of a beneficiary’s selection by selecting an inappropriate wage level or by changing the wage offered to a lower wage level in the petition than that indicated in the lottery registration for that beneficiary. The proposal does, however, recognize that there are legitimate reasons that an intended work location might change between the time of registration and the time of filing the petition, so USCIS may, in its discretion, find that a change in the intended work location (corresponding to a lower wage level) would be permissible, provided that it views the change as consistent with a bona fide job offer at the time of registration.

The offered wage and corresponding levels

The H-1B cap registration would capture the OEWS wage level associated with the wage being offered to the prospective H-1B employee. If the beneficiary were to work in multiple locations, the employer would be required to select the lowest corresponding OEWS wage level associated with the position. If more than one employer submits a registration on behalf of a foreign national, the foreign national would be entered into the H-1B cap lottery according to registration with the lowest prevailing wage level.

USCIS explicitly recognizes that some employers may choose to offer a higher wage to certain foreign nationals in order to be more competitive in the H-1B selection process. USCIS says that in this circumstance, an offered wage need not be directly related to skill level; the agency views a higher wage as a reflection of the beneficiary’s value to the employer, “which, even if not related to the position’s skill level per se, reflects the unique qualities the beneficiary possesses.”

Impact on the FY 2027 H-1B cap and beyond

If finalized as proposed, the regulation could limit employers’ access to some candidates, particularly those offered a wage corresponding to Level 1, the entry-level tier of the DOL wage system.

Today’s regulation is a proposal only, but it could be finalized in time to affect the FY 2027 H-1B cap season, which will begin in March 2026. If the rule is implemented, employers and their immigration counsel would need to undertake an evaluation of prospective H-1B candidates to determine the appropriate wage level for each, well before USCIS begins to accept registrations for the FY 2027 cap. 

What’s next for the proposed regulation

DHS will accept public feedback on the regulation for 30 days after the proposal is published in the Federal Register. Once the comment period closes, DHS must meaningfully consider the feedback; though there is no deadline for this review, the agency usually considers feedback for at least a period equal or similar to the public comment period. Once the review is complete, the regulation would be finalized and published in the Federal Register with an effective date that is typically 30 to 60 days after publication. If the rule is finalized, legal challenges are possible.

Feedback from the business community will be crucial to inform the government about the impact of the rule on U.S. competitiveness in the marketplace for talent. If your organization is interested in submitting a comment, please contact your Fragomen professional or the firm’s Government Strategies and Compliance Group.

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

Related content

  • Navigating Immigration Under the Second Trump Administration

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related content

  • Navigating Immigration Under the Second Trump Administration

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related content

  • Navigating Immigration Under the Second Trump Administration

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

ABA Journal: Will US Immigration Policies Create ‘Chilling Effect’ on World Cup?

Partner Daniel Schwarz highlights how US visa appointment backlogs and limited availability for B visas are shaping international travel planning for the upcoming World Cup.

Learn more

Article

Saudi Arabia: Premium Residency, Property Ownership and Compensation Structuring Under Vision 2030 - Part 2

Destination Services Director Christine Sperr examines how Saudi Arabia’s evolving Premium Residency framework and newly expanded foreign property ownership rules are reshaping the Kingdom’s appeal for internationally mobile professionals, global employers and institutional investors.

Learn more

Media mentions

Daily Mail: The Great Midlife Exodus to Portugal

Practice Leader Olga Nechita outlines key Portuguese visa options for UK nationals, including routes for entrepreneurs and retirees, alongside basic income and residency requirements.

Learn more

Video

June 2026 Visa Bulletin

Partner Melissa Vasquez-Myers reviews the June 2026 Visa Bulletin, including retrogression for EB2 and EB1 India and forward movement in the EB3 category for Indian and Chinese nationals.

Learn more

Media mentions

Bloomberg Law: ICE Raises the Stakes for Employers’ I-9 Compliance Failures

Partner Daniel Brown discussed how updated Immigration and Customs Enforcement guidance could increase employer exposure to I-9 compliance penalties.

Learn more

Awards

Canada Managing Partner Cosmina Morariu Recognized Among Top Women Leaders of Toronto for 2026

Canada Managing Partner Cosmina Morariu is recognized by Women We Admire among the Top Women Leaders of Toronto for 2026 for her leadership in immigration and global mobility.

Learn more

Video

How to Hire International Employees in the UK: Visas Explained for Employers

Senior Manager Harry Goldstraw outlines key considerations for UK employers hiring international talent, including sponsorship requirements, visa pathways and compliance obligations shaping workforce mobility strategy.

Learn more

Article

The Myth of A1 Simplification: Why EU Business Travel Compliance Is Becoming More Complex

Senior Counsel Jo Antoons examines how the EU’s proposed social security reforms are reshaping A1 compliance for business travel, introducing “Day One” requirements and greater complexity.

Learn more

Awards

Fragomen Wins 2026 FEM Americas EMMAs for Outstanding Agility & Crisis Management and Thought Leadership

Fragomen is recognized with multiple honors at the 2026 FEM Americas EMMAs, including Outstanding Agility & Crisis Management as a Service Provider and Thought Leadership – Best Survey or Research Study of the Year for the Worldwide Immigration Trends Report 2026.

Learn more

Blog post

Housing Market Dynamics in Saudi Arabia: Policy Changes, Rent Stabilization and Cost of Living Implications for Employers - Part 1

Destination Services Director Christine Sperr examines how housing market reforms, rent stabilization measures and cost-of-living dynamics in Saudi Arabia are influencing workforce mobility, compensation planning and long-term settlement strategies under Vision 2030.

Learn more

Visas

German Visa Risks: What Past Unauthorised Employment Means for Your Visa Application

Manager Dr. Adela Schmidt explains how German authorities assess past travel and business activities and why suspected unauthorized work during prior visits can lead to visa refusals and temporary entry bans.

Learn more

Video

Romania Launches Unified Work Permit System | #MobilityMinute

Assistant Manager Sukhjeet Kaur discusses Romania’s proposed immigration reforms, including new visa categories, employer authorization requirements and a new digital immigration platform.

Learn more

Media mentions

ABA Journal: Will US Immigration Policies Create ‘Chilling Effect’ on World Cup?

Partner Daniel Schwarz highlights how US visa appointment backlogs and limited availability for B visas are shaping international travel planning for the upcoming World Cup.

Learn more

Article

Saudi Arabia: Premium Residency, Property Ownership and Compensation Structuring Under Vision 2030 - Part 2

Destination Services Director Christine Sperr examines how Saudi Arabia’s evolving Premium Residency framework and newly expanded foreign property ownership rules are reshaping the Kingdom’s appeal for internationally mobile professionals, global employers and institutional investors.

Learn more

Media mentions

Daily Mail: The Great Midlife Exodus to Portugal

Practice Leader Olga Nechita outlines key Portuguese visa options for UK nationals, including routes for entrepreneurs and retirees, alongside basic income and residency requirements.

Learn more

Video

June 2026 Visa Bulletin

Partner Melissa Vasquez-Myers reviews the June 2026 Visa Bulletin, including retrogression for EB2 and EB1 India and forward movement in the EB3 category for Indian and Chinese nationals.

Learn more

Media mentions

Bloomberg Law: ICE Raises the Stakes for Employers’ I-9 Compliance Failures

Partner Daniel Brown discussed how updated Immigration and Customs Enforcement guidance could increase employer exposure to I-9 compliance penalties.

Learn more

Awards

Canada Managing Partner Cosmina Morariu Recognized Among Top Women Leaders of Toronto for 2026

Canada Managing Partner Cosmina Morariu is recognized by Women We Admire among the Top Women Leaders of Toronto for 2026 for her leadership in immigration and global mobility.

Learn more

Video

How to Hire International Employees in the UK: Visas Explained for Employers

Senior Manager Harry Goldstraw outlines key considerations for UK employers hiring international talent, including sponsorship requirements, visa pathways and compliance obligations shaping workforce mobility strategy.

Learn more

Article

The Myth of A1 Simplification: Why EU Business Travel Compliance Is Becoming More Complex

Senior Counsel Jo Antoons examines how the EU’s proposed social security reforms are reshaping A1 compliance for business travel, introducing “Day One” requirements and greater complexity.

Learn more

Awards

Fragomen Wins 2026 FEM Americas EMMAs for Outstanding Agility & Crisis Management and Thought Leadership

Fragomen is recognized with multiple honors at the 2026 FEM Americas EMMAs, including Outstanding Agility & Crisis Management as a Service Provider and Thought Leadership – Best Survey or Research Study of the Year for the Worldwide Immigration Trends Report 2026.

Learn more

Blog post

Housing Market Dynamics in Saudi Arabia: Policy Changes, Rent Stabilization and Cost of Living Implications for Employers - Part 1

Destination Services Director Christine Sperr examines how housing market reforms, rent stabilization measures and cost-of-living dynamics in Saudi Arabia are influencing workforce mobility, compensation planning and long-term settlement strategies under Vision 2030.

Learn more

Visas

German Visa Risks: What Past Unauthorised Employment Means for Your Visa Application

Manager Dr. Adela Schmidt explains how German authorities assess past travel and business activities and why suspected unauthorized work during prior visits can lead to visa refusals and temporary entry bans.

Learn more

Video

Romania Launches Unified Work Permit System | #MobilityMinute

Assistant Manager Sukhjeet Kaur discusses Romania’s proposed immigration reforms, including new visa categories, employer authorization requirements and a new digital immigration platform.

Learn more

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.