The Department of Homeland Security will end the random lottery used to allocate H-1B work visas and replace it with a wage-based selection system that prioritizes higher-paid and more highly skilled foreign workers.
DHS said the new process will rank H-1B registrations according to the wage level employers offer for specialty occupations, using existing federal wage data and job classifications. Applications with higher wage offers will receive priority when demand exceeds the annual visa cap.
The change applies to both the regular H-1B cap and the advanced-degree exemption for workers with U.S. graduate degrees. Federal law sets the numerical limits for both categories, and those caps remain unchanged.
DHS said the revised system aims to better align the program with labor market needs, support employers seeking highly skilled workers, and reduce incentives to offer lower wages to gain an advantage under a random lottery. The agency said the approach also seeks to protect U.S. workers by favoring jobs that meet higher prevailing wage standards.
Employers will continue to submit registrations through the existing electronic system during designated filing periods. DHS will then use wage-based tiers to determine which registrations may proceed to full petition filing.
The agency released guidance outlining compliance requirements and said it will monitor the effects of the new system on application trends, industries, and wage levels as implementation begins.