The FY 2027 H-1B cap season marks one of the most consequential turning points in U.S. employment-based immigration in decades.
With registration opening on 4th March 2026 and multiple policy changes taking effect in early 2026, employers are facing new H-1B rules that fundamentally alter selection odds, costs, and compliance risk.
Below, we break down the most important H-1B changes employers need to understand and what they mean for workforce planning through 2026 and 2027.
At a Glance: What Are the Major H-1B Changes for FY 2027?
For employers, three developments define the new H-1B landscape:
- A wage-weighted H-1B lottery system
- A new $100,000 petition fee for certain filings
- Increased H-1B enforcement and compliance scrutiny
Together, these shifts signal a move away from volume-based sponsorship toward higher wages, tighter controls, and stronger enforcement.
H-1B Change #1: A Wage-Weighted Lottery Replaces Random Selection
The traditional random H-1B lottery is being replaced by a wage-weighted selection system, fundamentally changing how petitions are chosen when demand exceeds the annual cap.
How the wage-weighted H-1B lottery works
Under the new framework, each registration receives a number of entries based on its prevailing wage level:
Wage Level I: 1 entry
Wage Level II: 2 entries
Wage Level III: 3 entries
Wage Level IV: 4 entries
Higher-paid roles now have meaningfully higher odds of selection, while entry-level or lower-wage positions face reduced chances compared to prior cap seasons.
What this H-1B change means for employers
Employers should expect:
- Greater scrutiny of wage levels and job classifications
- Increased importance of accurate prevailing wage analysis
- Lower selection odds for junior or entry-level roles
- More strategic decision-making before registration submission
As David W. Leopold, Partner at Thompson Hine LLP — whose immigration group advises employers on global talent management and cross-border employment issues — explains:
“H-1B lottery selection rates will be influenced by a position’s salary, occupational classification, and worksite location. This moment gives companies a strategic opportunity to evaluate where H-1B-sponsored positions are based and to carefully scrutinize the occupational classification assigned to each role.”
This shift makes upfront role design and wage analysis a critical part of H-1B strategy, not a downstream compliance exercise.
In short, wage strategy is now lottery strategy.
H-1B Change #2: A New $100,000 Petition Fee Increases Cost Exposure
Another major shift comes from the introduction of a $100,000 H-1B petition fee for certain cases. In particular, a $100,000 payment is required to accompany any new H-1B visa petitions submitted after 12:01 a.m. Eastern Daylight Time on Sept. 21, 2025.
While not every H-1B filing is subject to the fee, its potential impact is substantial.
Cost implications employers must plan for
Beyond the petition itself, employers are now factoring in:
- Significantly higher per-employee immigration costs
- Greater budget sensitivity around where candidates are located
- More deliberate timing of filings and change-of-status decisions
- The cumulative impact of legal fees, premium processing, and compliance oversight
As a result, immigration budgeting is increasingly tied to workforce planning and hiring timelines.
H-1B Change #3: Increased Enforcement Under Project Firewall
In parallel with lottery and fee changes, employers are also facing heightened H-1B enforcement through initiatives like Project Firewall, which targets wage compliance and program integrity.
Why H-1B enforcement changes matter
Under increased enforcement, errors that were once overlooked can now trigger serious consequences, including:
- Government audits
- Back wage assessments
- Civil penalties
- Restrictions on future sponsorship
Common risk areas include misaligned wage levels, inaccurate job duties, inconsistent work locations, and incomplete documentation.
How Employers Can Reduce Risk Amid H-1B Enforcement Changes
To adapt to this environment, employers are increasingly taking proactive steps, such as:
- Integrating immigration planning into long-term workforce forecasting
- Auditing existing H-1B populations and documentation
- Aligning job descriptions, wages, and worksite data across systems
- Training HR and talent teams on evolving H-1B compliance requirements
In the FY 2027 landscape, reactive immigration management is no longer sufficient.
Alternatives and Contingency Planning Beyond the H-1B
Given rising costs, lower odds, and increased enforcement, many organizations are broadening their immigration strategies to reduce dependence on the H-1B program alone.
Common approaches include:
- Earlier initiation of employment-based green card processes
- Use of alternative nonimmigrant visas such as L-1, O-1, TN, or E-3
- International mobility strategies, including hiring or relocating talent to Canada, the U.K., or other global hubs
These options help preserve access to critical skills while mitigating H-1B-specific risk.
What the FY 2027 H-1B Changes Mean for Employers
The upcoming H-1B season is not just another cap cycle; it represents a structural reset. Employers that navigate it successfully will be those that prioritize:
- Strategic wage and job classification decisions
- Accurate budgeting for new H-1B fees and compliance costs
- Clear contingency plans for key talent
- Strong operational visibility into cases, deadlines, and documentation
As immigration rules become more complex and enforcement intensifies, many organizations are turning to experienced immigration professionals and robust technology platforms to support end-to-end case management, compliance tracking, and reporting — whether through Mitratech’s INSZoom platform or broader immigration program solutions.
In this new era of H-1B filings, informed planning and the right operational foundation can make the difference between uncertainty and resilience. Get in touch with our experts to learn more or ask questions.
