The Department of Homeland Security finalizes weighted selection rule for FY 2027
The Department of Homeland Security (DHS) has finalized a rule, effective Feb. 27, 2026, that introduces a weighted selection process for H-1B cap-subject registrations starting with the FY 2027 season.
This new system replaces the traditional random lottery with a model that prioritizes higher-wage positions, aiming to favour more skilled applicants while still allowing participation across all wage levels.
Here’s how it works:
- Each unique beneficiary is entered into the selection pool based on the Occupational Employment and Wage Statistics (OEWS) wage level tied to their job.
- Higher wage levels receive more entries, significantly improving selection odds for higher-paid roles.
Entry allocation by wage level:
- Level 1 (Entry): 1 entry
- Level 2 (Qualified): 2 entries
- Level 3 (Experienced): 3 entries
- Level 4 (Expert): 4 entries
Employers must provide accurate wage-level and occupational details during registration and later substantiate these claims in their petitions. U.S. Citizenship and Immigration Services (USCIS) may deny or revoke petitions if evidence suggests manipulation of wages, job duties, or work location to influence selection.
Federal judge upholds $100,000 H-1B fee amid legal challenges
In a separate development, a U.S. district judge has upheld the Trump administration’s $100,000 fee on H-1B visa applications.
Judge Beryl Howell, in a detailed 56-page ruling, affirmed the president’s “broad statutory authority” to impose such measures to address economic and national security concerns.
Legal challenges remain active, with at least two additional lawsuits pending. This means the issue is far from settled and will continue to evolve in the courts.
What this means for employers and applicants
- Plan ahead: Employers should review wage levels and job descriptions carefully to maximize selection chances under the new weighted system.
- Budget considerations: If the $100,000 fee survives ongoing litigation, it will dramatically increase the cost of sponsoring H-1B workers.
- Stay informed: Both changes could reshape hiring strategies and immigration planning for years to come.
How our team can help
BDO’s Immigration team can help employers and applicants navigate evolving U.S. immigration pathways with clarity and efficiency. Early preparation is critical to navigating the updated H-1B program.
For more information about how these changes could impact your workforce planning, please contact our Immigration Services Leader.
The information in this publication is current as of Jan. 6, 2026.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.