The FY 2027 H-1B lottery registration window closed today, March 19, 2026. USCIS will now process registrations and announce selections by March 31. This year's cap season is unlike any before it: for the first time, the lottery is no longer purely random. A new wage-weighted selection system gives candidates offered higher salaries a distinct advantage compared to prior years — a change that affects every employer who registered, and every employer planning ahead for next year.

If you have employees or prospective hires in the selection pool, here is what you need to know about how the process works, what changed, and how to stay compliant once a petition is approved.

What Is the H-1B Cap?

The H-1B visa allows U.S. employers to temporarily employ foreign workers in specialty occupations that generally require at least a bachelor's degree in a specific field. Congress sets an annual numerical limit — called the cap — on how many new H-1B visas can be issued each fiscal year.

Annual H-1B Cap at a Glance

Because demand from employers far exceeds 85,000 slots each year, U.S. Citizenship and Immigration Services (USCIS) uses a lottery — formally called the H-1B electronic registration and selection process — to determine which candidates may proceed to a full petition filing.

Who Is Exempt from the Cap?

Not all H-1B petitions count against the cap. The following are cap-exempt and may be filed at any time:

• Institutions of higher education and affiliated nonprofit entities
• Nonprofit research organizations
• Government research organizations
• Extensions of stay, changes of employer, and amendments for existing H-1B holders

The FY 2027 H-1B Cap: Key Dates and Deadlines

Important: Only cap-subject, employer-sponsored petitions for new H-1B employment are subject to these dates. Extensions and amendments are not restricted to this window.

The Biggest Change for FY 2027: The Wage-Weighted Lottery

For FY 2027, USCIS has replaced the longstanding random lottery with a wage-weighted selection system — the most significant structural change to the H-1B cap since 2020.

How the New System Works

Under the final rule published by the Department of Homeland Security (DHS) on December 29, 2025, and effective February 27, 2026, each beneficiary is entered into the selection pool multiple times based on the Department of Labor's (DOL) Occupational Employment and Wage Statistics (OEWS) wage level associated with the offered position.

A candidate offered a Level IV wage now has four times the chance of selection compared to a Level I candidate. For beneficiaries with a U.S. master's degree or higher, this multiplier applies in both the Regular Cap pool and the Advanced Degree pool.

What Employers Must Now Provide at Registration

Under the new rule, employers must specify the following at the time of registration — not just when filing the petition:

1. Standard Occupational Classification (SOC) code for the offered role
2. OEWS wage level corresponding to the offered salary for that SOC code and geographic area
3. Area of intended employment
4. Offered wage (must at least meet the wage level selected)

The New $100,000 Fee

A Presidential Proclamation now imposes an additional $100,000 fee on certain H-1B petitions — specifically where the beneficiary must obtain an H-1B visa at a U.S. consulate abroad, often because they are outside the United States or are otherwise ineligible to change status domestically. This fee does not apply when USCIS approves a valid change-of-status request filed while the beneficiary is in lawful status inside the U.S.

This development is expected to increase the use of change-of-status filings and may reduce the overall number of registrations for candidates located abroad.

What This Means for Employers Strategically

• Employers who can offer higher salaries should align compensation structures to reach the next OEWS wage tier where feasible.
• Entry-level positions tied to Level I wages face significantly lower odds of selection.
• If multiple employers register the same beneficiary, the lowest wage level among those registrations determines the number of lottery entries.

Understanding the H-1B Cap-Gap

One of the most misunderstood aspects of the H-1B cap process is the cap-gap — a critical bridge for F-1 student visa holders working on Optional Practical Training (OPT) who are transitioning to H-1B status.

What Is Cap-Gap?

The "cap" refers to the H-1B annual quota, and the "gap" refers to the period between the expiration of a student's F-1 OPT authorization and the October 1st start date of H-1B status. For a student whose OPT expires in June or July, this gap can be several months.

To address this, DHS regulations provide an automatic extension of F-1 status and, in many cases, OPT employment authorization, to eligible students awaiting the start of their H-1B status.

Cap-Gap Eligibility Requirements

A student qualifies for cap-gap protection only if all of the following conditions are met:

Cap-Gap: What It Does and Does Not Cover

Cap-gap DOES allow:

• Continued F-1 status through September 30 (or until the H-1B is denied, withdrawn, or revoked)
• Continued employment authorization if OPT was still valid when the H-1B petition was filed

Cap-gap DOES NOT allow:

• New employment not already covered by OPT authorization
• Work authorization if only F-1 status (but not OPT) is extended
• Travel outside the United States (doing so abandons the change-of-status request)
• Protection if the H-1B petition is denied or withdrawn

Common H-1B Compliance Issues Employers Must Avoid

H-1B sponsorship carries significant ongoing legal obligations. USCIS has increased site visits and enforcement activity, meaning compliance failures — even unintentional ones — can result in petition denials, revocations, debarment, and civil penalties.

Top H-1B Compliance Violations

USCIS Site Visits: What to Expect

USCIS now conducts site visits — including unannounced visits to third-party client locations, remote worksites, and employees' home offices. Employers should maintain detailed, contemporaneous documentation of:

• Job duties and reporting structures
• Supervision and control mechanisms
• Client engagement arrangements and contracts
• Wage payment records

What Happens If You're Not Selected in the Lottery?

Not being selected does not mean the end of the road. Employers and employees should consider:

• Re-registration the following year — unselected registrations do not carry over, but candidates can be re-registered in the next cap season
• Cap-exempt employers — if a position qualifies at a university, affiliated nonprofit, or research organization, H-1B petitions can be filed year-round
• Alternative visa categories — O-1A (extraordinary ability), TN (Canadian/Mexican nationals), E-3 (Australian nationals), H-1B1 (Chilean/Singaporean nationals), and L-1 (intracompany transferee) visas may be available depending on the facts
• STEM OPT extension — eligible F-1 students may extend OPT for up to 24 months, providing additional time before the next lottery cycle

FY 2027 Lottery: Practical Tips for Employers

1. Audit your workforce now. Identify all employees on OPT, STEM OPT, F-1, H-4, L-2, TN, or other non-immigrant status who may need H-1B sponsorship.
2. Analyze wage levels strategically. Work with immigration and HR to determine whether compensation can be structured to reach a higher OEWS wage tier.
3. Get your SOC codes right. The SOC code must accurately reflect the day-to-day duties of the role — not just the job title. Mismatches are grounds for denial or revocation.
4. Consider change of status filings to avoid the $100,000 consular fee where the beneficiary is lawfully present in the U.S.
5. Document everything. The new Process Integrity framework means USCIS will scrutinize consistency between registration data, the LCA, and the petition itself.
6. Plan backup options. Selection is never guaranteed, even with multiple lottery entries. Have alternative visa strategies ready.
7. Consult immigration counsel early. The compressed registration window — 16 days — leaves little room for error.

Conclusion: Navigate H-1B Cap Season with Experienced Counsel

The FY 2027 H-1B cap season represents a pivotal moment for U.S. employers who rely on the H-1B program. The shift to a wage-weighted lottery, combined with a new $100,000 consular fee, heightened USCIS scrutiny, and stricter Process Integrity rules, means that strategic planning and legal precision are more important than ever.

Our immigration attorneys are ready to help your organization assess its workforce needs, develop a strategy, navigate cap-gap compliance, and ensure that every step of the H-1B process is completed accurately and on time.

Contact our immigration team today to schedule a consultation.

This article is provided for general informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship between you and CTM Legal Group. Immigration law is complex and fact-specific, and the information presented here may not reflect the most current legal developments. Please consult with a qualified immigration attorney regarding your particular circumstances. An attorney-client relationship with CTM Legal Group is established only through a signed retainer agreement.