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DHS issues final rule implementing weighted H-1B cap selection process

February 2026 employment law letter
Authors: 

Ann Lee, Holland & Hart LLP

The U.S. Department of Homeland Security (DHS) has issued Weighted Selection Process for Registrants and Petitioners Seeking to File Cap-Subject H-1B Petitions, a final rule that significantly reshapes how H-1B cap-subject registrations are conducted, changing them from a random selection process to a weighted selection process that prioritizes higher-wage, higher-skilled H-1B beneficiaries while preserving access to the program across all wage levels. The rule is scheduled to take effect on February 27, 2026—in time for the fiscal year (FY) 2027 H-1B registration season—and represents one of the most consequential changes to the H-1B cap selection framework in recent years.

From random lottery to weighted selection

Under the current system, U.S. Citizenship and Immigration Services (USCIS) conducts a beneficiary-centric random selection during which each unique beneficiary has an equal chance of selection, regardless of the wage level offered or the role’s seniority level. The final rule retains the beneficiary-centric model but layers in a wage-based weighting mechanism.

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