Legal briefs circulated on 5 February confirm that the Department of Homeland Security’s Final Rule overhauling the H-1B cap selection mechanism will indeed become operative on 27 February 2026, days before the FY 2027 registration window opens. The regulation replaces the pure random draw introduced in 2020 with a multi-factor randomisation that allocates additional entries based on the Department of Labor wage level stated for the offered position.
Under the schema, Level IV wage jobs get four “entries,” Level III three, Level II two and Level I just one, dramatically redistributing selection probabilities toward senior, higher-paid roles. DHS argues the model will deter small consulting shops from bulk-registering lower-wage candidates, freeing slots for companies that genuinely struggle to source advanced expertise domestically.
![Weighted H-1B lottery becomes law as DHS Final Rule takes effect 27 February 2026]()
The Final Rule also codifies a steep US $100,000 filing fee payable by employers that file 500 or more cap-subject petitions in a fiscal year, although it exempts universities and nonprofit research entities. The fee is in addition to existing petition-stage charges and the new US $215 registration fee.
Large multinationals must now decide whether to reduce the volume of junior STEM registrations or absorb the surcharge. Immigration counsel advise using the next two weeks to audit job-order wage levels so that registrations, Labor Condition Applications and eventual petitions all match; inconsistency may trigger fraud-related denials.
Litigation is likely, but DHS has built a severability clause and insists the core wage-weighting can survive even if the fee component is struck down. For now, companies should proceed on the assumption the weighted lottery will govern the FY 2027 selection.
Under the schema, Level IV wage jobs get four “entries,” Level III three, Level II two and Level I just one, dramatically redistributing selection probabilities toward senior, higher-paid roles. DHS argues the model will deter small consulting shops from bulk-registering lower-wage candidates, freeing slots for companies that genuinely struggle to source advanced expertise domestically.
The Final Rule also codifies a steep US $100,000 filing fee payable by employers that file 500 or more cap-subject petitions in a fiscal year, although it exempts universities and nonprofit research entities. The fee is in addition to existing petition-stage charges and the new US $215 registration fee.
Large multinationals must now decide whether to reduce the volume of junior STEM registrations or absorb the surcharge. Immigration counsel advise using the next two weeks to audit job-order wage levels so that registrations, Labor Condition Applications and eventual petitions all match; inconsistency may trigger fraud-related denials.
Litigation is likely, but DHS has built a severability clause and insists the core wage-weighting can survive even if the fee component is struck down. For now, companies should proceed on the assumption the weighted lottery will govern the FY 2027 selection.
