Navigating the FY 2027 H-1B Season
What employers and applicants need to know
The H-1B visa landscape is undergoing its most significant transformation in years. As we enter the 2026 calendar year, businesses and foreign professionals must prepare for the Fiscal Year (FY) 2027 cap season with a completely new strategy.
Gone are the days of a simple random lottery. The Department of Homeland Security (DHS) has finalized rules that fundamentally change how "winners" are selected, prioritizing higher-paid roles and increasing the financial stakes for sponsorship.
The New Weighted Selection System (Wage-Level Based)
Effective February 27, 2026, USCIS has replaced the traditional random lottery with a weighted selection process. While the system is still technically a lottery, your "tickets" in the pool are now determined by the Department of Labor (DOL) wage level offered for the position.
Under the new rule, the more experienced and higher-paid the role, the better the odds of selection. Entries will be divided into four wage levels. Level 1 (Lowest) will have one entry, Level 2 will have two entries, Level 3 will have three entries, and Level 4 (Highest) will have four entries.
The Impact: Entry-level positions (Level 1) will see a significant decrease in selection probability, while senior-level roles (Level 4) will have their odds nearly quadrupled compared to the old system.
Significant Fee Changes and the $100,000 Surcharge
Employers must account for a shifting cost structure in 2026.
Registration Fee: The non-refundable registration fee remains $215 per beneficiary.
Inflation-Adjusted Premium Processing: Effective March 1, 2026, premium processing fees have increased to reflect inflation. For most H-1B petitions, the fee is now $2,965.
The $100,000 Consular Fee: Under a 2025 Presidential Proclamation, certain H-1B petitions for beneficiaries outside the United States (consular processing) may be subject to a staggering $100,000 fee.
Note: This fee typically does not apply to "Change of Status" filings for individuals already in the U.S. (such as F-1 students or L-1 holders). However, litigation regarding this fee is ongoing, and employers should consult counsel before finalizing budgets.
Key Deadlines for the FY 2027 Season
Preparation must begin immediately. While USCIS will announce exact dates soon, based on the historical and regulatory timeline for 2026 is as follows:
Late January/February 2026: Conduct wage Level analysis and finalize job descriptions.
March 2026 (TBD): The H-1B Electronic Registration window opens (typically for 14–21 days).
March 31, 2026: USCIS expects to notify selected registrants.
April 1, 2026: First day to file full H-1B petitions for selected registrations.
October 1, 2026: Earliest start date for approved FY 2027 H-1B status.
*These dates may be subject to change.Strategic Planning: Why "Wait and See" No Longer Works
Because selection is now tied to wage levels, the registration process requires much more "front-end" work. In previous years, employers could register with minimal data. However, in 2026, to maximize the chance of being selected, an employer should:
Identify the Standard Occupational Classification (SOC) Code and Worksite: Wage levels vary by geographic location. You must know exactly where the employee will work to determine their "weighted" entry count.
Verify Educational Credentials: USCIS continues to prioritize the 20,000 "Master’s Cap" slots, but these are now also subject to the wage-weighted entries.
Explore Alternatives: Given the lower odds for Level 1 roles, employers should evaluate O-1 (Extraordinary Ability), TN (for Canadians/Mexicans), or L-1 (Intracompany Transferees) as potential backups.
How We Can Help
The 2026 H-1B application season is no longer just a game of chance—it is a game of data and precision. Our firm is currently helping clients perform wage audits and strategic job mapping to maximize their selection odds for the upcoming lottery.
By Jonathan Ng