The End of the H‑1B Lottery in USA: What Employers and New Graduates Need to Know
The United States has officially retired the random‑selection H‑1B lottery for the FY 2027 cap. Starting with the upcoming registration window, U.S. Citizenship and Immigration Services (USCIS) will allocate H‑1B visas through a wage‑based, weighted system. The change, published in the Federal Register, reshapes how employers—especially small businesses—hire skilled foreign workers and how recent F‑1 graduates plan their post‑study employment.
Why the Lottery Was Replaced For more than a decade the H‑1B cap was filled by a simple lottery: every registration had an equal chance, regardless of the offered salary or the skill level of the role. The new rule aims to:
1. Prioritize higher‑waste positions – jobs that pay at the top of the prevailing wage scale receive more entries in the selection pool.
2. Address wage stagnation – by favoring higher wages, the government hopes to push employers toward better compensation for skilled workers.
3. Reduce abuse – the lottery was seen as vulnerable to multiple filings for the same employee, a practice
How the Weighted System Works USCIS will assign each H‑1B registration a weight based on the Department of Labor’s wage level:
– Level 1 (Entry‑level) – 1 entry
– Level 2 (Mid‑level) – 2 entries
– Level 3 (Specialized) – 3 entries
– Level 4 (High‑level/Managerial) – 4 entries
A registration for a senior software engineer earning a Level 4 wage could count four times toward the 65,000 regular cap, while an entry‑level analyst at Level 1 would count only once. The higher the wage, the greater the chance of selection.
Impact on Small Businesses and Entry‑Level Hires Small and medium‑size enterprises that traditionally sponsor junior talent are likely to feel the squeeze. An entry‑level role that previously had a roughly 30 % chance of selection may now drop to the low‑teens. To stay competitive, employers have three practical options:
1. Raise the offered salary to meet a higher wage level.
2. Reclassify the position as a more senior or specialized role, perhaps by adding responsibilities that justify a higher wage.
3. Explore alternative visas such as the O‑1 (extraordinary ability), L‑1 (intra‑company transfer), or cap‑exempt positions in research institutions.
What This Means for International Graduates For F‑1 students nearing graduation, the shift signals a more competitive landscape. The traditional graduate, then H‑1B route will now favor candidates who can command higher salaries or who have unique expertise. Graduates can take proactive steps:
– Negotiate a higher starting salary when receiving a job offer, especially if the employer is open to adjusting the role description.
– Target employers who already sponsor higher‑wage positions or who have a history of filing cap‑exempt petitions.
– Consider post‑completion OPT extensions or STEM OPT if the full H‑1B quota is not immediately attainable.
– Build a strong professional profile (publications, patents, certifications) that can support an O‑1 or EB‑2 NIW petition down the line.
Practical Checklist for Employers- Audit current openings and map each role to the DOL wage level.
– Calculate the effective entry count for each registration to understand selection odds.
– Update compensation packages where feasible to reach the next wage tier.
– Identify backup visa strategies for roles that cannot meet the higher wage threshold.
– Engage immigration counsel early to ensure registration filings are accurate and optimized.
The move from a lottery to a wage‑weighted H‑1B system marks a fundamental shift in U.S. skilled‑immigration policy. While the change presents challenges ,particularly for small businesses and recent graduates ,it also creates opportunities for employers willing to invest in higher‑skill, higher‑pay talent and for graduates who can position themselves as premium candidates.
