DHS finalizes weighted H 1B selection, rule takes effect February 27

The Department of Homeland Security and U.S. Citizenship and Immigration Services published a final rule on December 29, 2025, titled Weighted Selection Process for Registrants and Petitioners Seeking To File Cap Subject H 1B Petitions, that replaces a purely random registration lottery with a weighting system based on wage levels. The rule appears in the Federal Register at 90 FR 60864 and will take effect 60 days after publication, on February 27, 2026, in time for the fiscal year 2027 H 1B registration season. The rule is codified at 8 CFR Part 214 and appears under CIS number 2847 26, DHS docket number USCIS 2025 0040 and RIN 1615 AD01.

USCIS said the new approach will weight selections generally on each beneficiary s equivalent wage level, using Occupational Employment and Wage Statistics wage levels as the basis for weighting. DHS officials framed the change as a means to incentivize employers to offer higher wages or to petition for positions that require higher skills, and to better ensure that the allocation of H 1B numbers favors relatively higher skilled and higher paid applicants. At the same time USCIS said the system is intended to preserve an opportunity for employers to obtain H 1B workers at all wage levels.

The rule follows a notice of proposed rulemaking published on September 24, 2025 at 90 FR 45986 and represents a fundamental change to the mechanics of the H 1B cap selection process. It applies to all cap registrations submitted on or after the effective date, including registrations eligible for the advanced degree exemption. USCIS also included administrative safeguards, stating that the agency may deny or revoke an H 1B petition if it determines that changes were made to unfairly increase an applicant s chances of selection or if there are material inconsistencies among the registration, the Labor Condition Application, and the petition.

Law firms and immigration advisors described the change as material for employer planning. Holland and Hart LLP called the move a "significant" reshaping of H 1B strategy and advised that "early planning and careful compliance will be essential" for employers seeking to remain competitive under the new system. The Murthy Law Firm emphasized operational points for practitioners, including the effective date and the need for alignment among registration, LCA and petition to avoid potential denials or revocations.

Economists and labor market observers say the weighted model is likely to increase incentives for employers to raise wages on sponsored roles, which could produce upward pressure on salary offers for H 1B positions and shift some petitions toward higher skilled occupations. That outcome would be consistent with the rule s stated objective, but it could also increase hiring costs for smaller firms and for industries that historically relied on lower wage H 1B placements.

What to watch next are the detailed implementation guidance and outreach from USCIS on how OEWS wage levels will translate into selection weights, and whether employers adjust their wage and job descriptions ahead of the first weighted registration season beginning after February 27, 2026.