The H-1B Lottery Just Changed: What Employers and Workers Need to Know Before March 19

On March 4, 2026, USCIS opened the initial registration period for the fiscal year 2027 H-1B cap—and for the first time, the selection process is no longer random. A new weighted lottery system, finalized on February 27, 2026, means your salary level now determines how many entries you receive. Meanwhile, a $100,000 Presidential Proclamation fee now applies to many H-1B petitions, and premium processing fees increased on March 1. If you are an employer sponsoring an H-1B worker, or a professional hoping to be selected, this is the most consequential H-1B season in years.

Here is everything you need to know before the window closes at noon Eastern on March 19, 2026.

The New Weighted Selection System

For years, the H-1B cap lottery operated on a simple principle: every registration had an equal chance, regardless of salary or skill level. The final rule published by DHS on December 29, 2025, replaced that system entirely.

Under that rule, “Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions,” the number of lottery entries a registration receives now corresponds to the offered salary relative to the Department of Labor’s four-level wage scale.

The math is straightforward: a Level 4 position has four times the statistical chance of selection compared to a Level 1 position.

There is also an important anti-gaming provision. If multiple registrations are filed for the same beneficiary at different wage levels, which happened frequently under the old system when staffing companies filed duplicates, USCIS will use the lowest wage level among those registrations for weighting purposes. This is designed to discourage the practice of filing multiple registrations to increase selection odds.

What This Means for Employers

The weighted system is a fundamental shift in H-1B strategy. For employers offering competitive salaries (hospitals sponsoring physicians, technology companies hiring senior engineers, universities recruiting experienced researchers), the odds have improved. A Level 3 or Level 4 offer now carries meaningful statistical advantage in the lottery.

For employers offering entry-level positions, the path is narrower but not closed. Level 1 positions still receive one entry and can still be selected.

This has particular implications for healthcare institutions. Physicians sponsored through cap-exempt positions (generally teaching hospitals, nonprofit research organizations) are not affected by the lottery at all, as their petitions are exempt from the cap. But physicians and healthcare professionals at cap-subject employers may now benefit from the weighted system if their salaries place them at Level 3 or Level 4.

Registration Details and Deadlines

The FY 2027 H-1B registration window is open now and closes at noon Eastern on March 19, 2026. During this period, prospective H-1B cap-subject petitioners must use a USCIS online account to electronically register each beneficiary and pay the $215 registration fee per registration. This fee is non-refundable regardless of selection outcome.

If you are an employer and have not yet registered your beneficiaries, the time to act is now. Do not wait until the final day. Technical issues and system volume can cause delays. Early registration is identical to last-day registration in terms of selection odds, but it eliminates the risk of missing the deadline.

After the registration period closes, USCIS will run the weighted selection process and notify selected registrants. Selected petitioners will then have a 90-day filing window to submit the full H-1B petition.

The $100,000 Proclamation Fee

This is the change that has reshaped employer calculations more than any other this season. On September 19, 2025, a Presidential Proclamation established a $100,000 fee on certain H-1B petitions.

In practical terms: if you are an employer sponsoring someone who is not already in the U.S. on an H-1B, you are likely subject to this fee. The $100,000 must be paid through pay.gov before the petition is filed. USCIS will deny any petition subject to the fee that is submitted without proof of payment or evidence of a national interest exception. AILA (American Immigration Lawyers Association) Members have already reported receiving Requests for Evidence asking for proof of Proclamation fee payment as a condition of eligibility.

There is a narrow national interest exception, but it requires the Secretary of DHS to determine that the beneficiary’s presence is in the national interest, that no American worker is available, that requiring the fee would significantly undermine U.S. interests, and that the beneficiary poses no threat to U.S. security or welfare. No guidance has been issued on what evidence is required to meet this standard.

The fee does not apply to petitions requesting a change of status, extension of status, or amendment where the request is granted—meaning workers already in the U.S. on valid H-1B status are not affected. And the fee is refundable if the petition is ultimately denied.

For employers, this changes the math entirely. A cap-subject H-1B petition for a worker abroad now carries a potential cost that includes the $215 registration fee, base filing fees, the ACWIA training fee, the fraud prevention fee, premium processing fees—and now another $100,000. For many small and mid-size employers, this fee alone may determine whether sponsorship is financially viable.

Premium Processing Fee Increases

As of March 1, 2026, premium processing fees have increased across the board. The changes are significant. Premium processing fees that were $1,685 are now $1,780. Fees that were $1,965 are now $2,075. And fees that were $2,805 are now $2,965—a $160 increase at the top tier.

These increases reflect inflation adjustments from June 2023 through June 2025, per the DHS final rule published January 12, 2026 in the Federal Register. Any Form I-907 postmarked on or after March 1, 2026, must include the new fee amount. Petitions submitted with the old fee will be rejected.

What You Should Do Now

If you are an employer, confirm that all intended beneficiaries have been registered before March 19. Verify wage level classifications, because under the weighted system, accurate wage level designation matters more than ever. Determine whether the $100,000 Proclamation fee applies to your petition, specifically whether your beneficiary is outside the U.S. without a valid H-1B visa.

If it does, budget accordingly and prepare to submit payment through pay.gov before filing.

Ensure your USCIS online account is current and that your authorized representative has access.

If you are a worker hoping to be sponsored, confirm with your employer that your registration has been filed. Understand your wage level and what it means for your selection probability. Begin gathering supporting documents (degree evaluations, specialty occupation evidence, organizational charts) so that if you are selected, your employer’s attorney can file the petition promptly within the 90-day window.

If you are a healthcare institution, consider whether your positions qualify for cap exemption. Teaching hospitals, nonprofit research organizations, and governmental research entities may be exempt from the H-1B cap entirely. If cap exemption applies, you can file at any time and do not need to participate in the registration lottery at all.

At Massa Viana Law, we work with employers and professionals across Massachusetts and Rhode Island on H-1B strategy, from registration through approval. If you have questions about the weighted system, wage level classification, the $100,000 Proclamation fee, cap exemption eligibility, or any aspect of the H-1B process, we are here.

Contact us:  (508) 309-7177 or (401) 680-6805| massavianalaw.com Offices in Southborough, MA and Providence, RI

Every case is unique. This article provides general information about the H-1B process and does not consist of legal advice. Consult with a qualified immigration attorney about your specific situation.