Important Updates
Important Updates
October 31, 2025 | ThailandThailand: Mandatory Online Work Permit and Foreign Worker Registration System Forthcoming
October 31, 2025 | BermudaBermuda: New Work Permit Policy to Prolong Processing Times
October 31, 2025 | ColombiaColombia: Delays in Issuance of Identification Cards
October 31, 2025 | 🌐Minimum Salary Changes Announced
October 31, 2025 | United StatesSenior Associate Agata Richardson Honored with Casa Cornelia Law Center Pro Bono Publico Award
October 31, 2025 | ThailandThailand: Mandatory Online Work Permit and Foreign Worker Registration System Forthcoming
October 31, 2025 | BermudaBermuda: New Work Permit Policy to Prolong Processing Times
October 31, 2025 | ColombiaColombia: Delays in Issuance of Identification Cards
October 31, 2025 | 🌐Minimum Salary Changes Announced
October 31, 2025 | United StatesSenior Associate Agata Richardson Honored with Casa Cornelia Law Center Pro Bono Publico Award
October 31, 2025 | ThailandThailand: Mandatory Online Work Permit and Foreign Worker Registration System 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
    Navigating Immigration Under the Second Trump AdministrationFragomen Consulting EuropeImmigration 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

  • Navigating Immigration Under the Second Trump Administration
  • Fragomen Consulting Europe
  • 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

Awards

Senior Associate Agata Richardson Honored with Casa Cornelia Law Center Pro Bono Publico Award

Senior Associate Agata Danuta Richardson is recognized with a prestigious Pro Bono Publico Award by the Casa Cornelia Law Center.

Learn more

Media mentions

European Security & Technology Magazine: Die kritische Wachstumsbremse der europäischen Verteidigungsindustrie

Frankfurt Managing Partner Dr. Axel Boysen highlights the growing skilled labor gap as Europe’s defense industry expands.

Learn more

Media mentions

Games Industry: US H-1B Visas: Alternatives to a $100,000 Fee

Senior Manager William Diaz outlines the US visa options available to the games industry for bringing international talent to the United States, including O-1, L-1 and E-2.

Learn more

Media mentions

People Management: How Will EU Travel Rule Changes Impact Employers?

Partner Jo Antoons and Manager Andreia Ghimis explain how businesses can navigate Europe’s new ETIAS pre-travel authorisation and avoid disruptions.

Learn more

Media mentions

Arts Professional: How Easy Is It for Overseas Creatives to Work in the UK?

Partner Louise Haycock and Associate Jennifer Gray analyse the barriers and opportunities for overseas creatives navigating the UK’s immigration system.

Learn more

Blog post

Claiming British Citizenship Through Ancestral Lineage: Who Is Eligible?

Associate Chloe Evans outlines eligibility criteria for individuals seeking British citizenship based on ancestral ties.

Learn more

Fragomen news

Fragomen Semiconductors Presents: "Voice of the Industry" October 2025 Q&A with Shari Liss

Fragomen’s Semiconductor Industry Group publishes the next installment of its “Voice of the Industry” Q&A series, featuring Shari Liss, Vice President of Global Workforce Development and Initiatives at SEMI.

Learn more

Media mentions

Gazeta Prawna: Legalny napływ cudzoziemców do pracy powstrzymany

Partner Karolina Schiffter highlights how Poland’s tightened visa system affects foreign hiring and the challenges companies face in navigating it.

Learn more

Media mentions

Bloomberg Law: US Chamber Turns Trump Foe in Rare Split Over $100,000 H-1B Fee

Partner Carl Hampe provides insight on the impact of the $100,000 H-1B fee and the US Chamber of Commerce’s related lawsuit.

Learn more

Awards

Fragomen Wins 2025 FEM EMEA “Best Partnership” EMMA for Collaboration with TBB

Fragomen was honoured with the “Best Partnership Between a Corporate Organization and a Service Provider” EMMA at FEM's 2025 EMEA Summit.

Learn more

Media mentions

Global Mobility Lawyer: DOL Flags Immigration Crackdown as Risk to Food Supply

Partner Rachel Beardsley highlights how H-2A visa strategies can help sustain a skilled US agricultural workforce.

Learn more

Blog post

Intra-African Mobility: Unlocking the Continent’s Promise Through Free Movement

Director Willys Mac’Olale discusses how intra-African mobility can unlock the continent’s economic and social potential by promoting free movement, fostering integration and development.

Learn more

Awards

Senior Associate Agata Richardson Honored with Casa Cornelia Law Center Pro Bono Publico Award

Senior Associate Agata Danuta Richardson is recognized with a prestigious Pro Bono Publico Award by the Casa Cornelia Law Center.

Learn more

Media mentions

European Security & Technology Magazine: Die kritische Wachstumsbremse der europäischen Verteidigungsindustrie

Frankfurt Managing Partner Dr. Axel Boysen highlights the growing skilled labor gap as Europe’s defense industry expands.

Learn more

Media mentions

Games Industry: US H-1B Visas: Alternatives to a $100,000 Fee

Senior Manager William Diaz outlines the US visa options available to the games industry for bringing international talent to the United States, including O-1, L-1 and E-2.

Learn more

Media mentions

People Management: How Will EU Travel Rule Changes Impact Employers?

Partner Jo Antoons and Manager Andreia Ghimis explain how businesses can navigate Europe’s new ETIAS pre-travel authorisation and avoid disruptions.

Learn more

Media mentions

Arts Professional: How Easy Is It for Overseas Creatives to Work in the UK?

Partner Louise Haycock and Associate Jennifer Gray analyse the barriers and opportunities for overseas creatives navigating the UK’s immigration system.

Learn more

Blog post

Claiming British Citizenship Through Ancestral Lineage: Who Is Eligible?

Associate Chloe Evans outlines eligibility criteria for individuals seeking British citizenship based on ancestral ties.

Learn more

Fragomen news

Fragomen Semiconductors Presents: "Voice of the Industry" October 2025 Q&A with Shari Liss

Fragomen’s Semiconductor Industry Group publishes the next installment of its “Voice of the Industry” Q&A series, featuring Shari Liss, Vice President of Global Workforce Development and Initiatives at SEMI.

Learn more

Media mentions

Gazeta Prawna: Legalny napływ cudzoziemców do pracy powstrzymany

Partner Karolina Schiffter highlights how Poland’s tightened visa system affects foreign hiring and the challenges companies face in navigating it.

Learn more

Media mentions

Bloomberg Law: US Chamber Turns Trump Foe in Rare Split Over $100,000 H-1B Fee

Partner Carl Hampe provides insight on the impact of the $100,000 H-1B fee and the US Chamber of Commerce’s related lawsuit.

Learn more

Awards

Fragomen Wins 2025 FEM EMEA “Best Partnership” EMMA for Collaboration with TBB

Fragomen was honoured with the “Best Partnership Between a Corporate Organization and a Service Provider” EMMA at FEM's 2025 EMEA Summit.

Learn more

Media mentions

Global Mobility Lawyer: DOL Flags Immigration Crackdown as Risk to Food Supply

Partner Rachel Beardsley highlights how H-2A visa strategies can help sustain a skilled US agricultural workforce.

Learn more

Blog post

Intra-African Mobility: Unlocking the Continent’s Promise Through Free Movement

Director Willys Mac’Olale discusses how intra-African mobility can unlock the continent’s economic and social potential by promoting free movement, fostering integration and development.

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
  • UK Regulatory Requirements

Our firm

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

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

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

© 2025 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.