The H-1B lottery as we’ve known it is officially over.
Starting with the FY 2027 H-1B cap season, USCIS will no longer rely on a pure random draw. Instead, the agency is implementing a weighted selection system tied directly to wage levels. In practical terms, what you pay now directly affects whether you are selected at all.
For employers and foreign nationals, this is not a minor tweak. It is a structural shift that rewards preparation, wage strategy, and compliance discipline.
This article explains how wage levels now impact H-1B selection odds, what this means for Texas employers specifically, and how to adjust before the next filing season.
The End of the One-Size-Fits-All Lottery
Under the new rule, every H-1B registration remains beneficiary-centric, but not equal.
USCIS will assign multiple entries into the selection pool based on the highest Occupational Employment and Wage Statistics (OEWS) wage level the offered salary meets or exceeds:
- Level I: 1 entry
- Level II: 2 entries
- Level III: 3 entries
- Level IV: 4 entries
The beneficiary is counted once toward the cap, but wage level determines how often that beneficiary appears in the selection pool.
This preserves access at all wage levels while mathematically favoring higher-paid, higher-skill roles. It also closes the door on mass low-wage registrations that previously diluted the lottery.
USCIS has been explicit that this rule is designed to realign the H-1B program with congressional intent: prioritizing skill, value, and program integrity.
Why Wage Level Is Now a Strategy, Not a Checkbox
Historically, many employers treated wage levels as a compliance floor.
The guiding question was often: what is the lowest defensible wage we can use?
That approach is now a competitive disadvantage.
Under the weighted system:
- A Level IV software engineer in Austin may have four times the selection probability of a Level I registration
- A Level III healthcare specialist in Houston significantly outperforms entry-level equivalents
- Multiple registrations for the same beneficiary do not increase odds
This means salary decisions now affect selection outcomes. Wage under classification creates both legal risk and reduced selection probability. Employers must justify the chosen wage level clearly and defensibly.
Texas Employers: Regional Wage Dynamics Matter More Than Ever
Texas adds an extra layer of complexity.
OEWS wage levels vary significantly across:
- Austin, Dallas, Houston, and San Antonio
- Technology, AI, engineering, healthcare, and finance roles
- Urban metropolitan areas versus suburban or hybrid work models
A wage that qualifies as Level II in one Texas metro may reach Level III in another, or fall short entirely.
As a result, location planning, job description precision, and hybrid work modeling now play a direct role in selection outcomes. Employers that align job scope, location, and compensation strategically gain a measurable advantage.
What This Means for Foreign Nationals
For F-1 students, OPT holders, STEM OPT graduates, and overseas professionals, this shift is equally significant.
Key points to understand:
- Entry-level roles remain eligible but are less competitive
- Advanced skills, niche expertise, and experience now carry quantifiable weight
- Employers willing to invest in market-aligned wages are more likely to succeed
Candidates should understand their true market value, ask informed questions about wage level strategy, and be cautious of employers who treat wage selection casually.
In the weighted system, the offered salary is no longer just compensation. It directly influences selection probability.
Common Mistakes That Will Reduce Selection Odds
Several errors are already emerging that will either trigger scrutiny or materially reduce selection chances:
- Using Level I wages for roles that are clearly mid-level or senior
- Inflating wages without job duties to support the classification
- Manipulating SOC codes to chase higher wage levels
- Treating registration and petition strategy as separate processes
USCIS has built integrity checks directly into the rule. The registration, Labor Condition Application, and petition must align cleanly and consistently.
The New H-1B Reality: Strategy Beats Volume
The era of flooding the system with registrations is over.
What replaces it is wage-driven probability, documentation discipline, role and compensation alignment, and early planning for FY 2027.
For employers, this is a strategic planning issue rather than a paperwork exercise. For foreign nationals, it is a market positioning challenge rather than a matter of luck.
What Smart Employers Are Doing Now
Forward-looking companies are already:
- Auditing prior H-1B wage levels
- Re-benchmarking Texas-specific compensation
- Redesigning roles for defensible wage alignment
- Conducting selection probability and compliance risk assessments
In the new system, delay directly impacts odds.
Ready to Assess Your H-1B Wage Risk?
If you are planning H-1B filings under the weighted selection rule, now is the time for a structured strategy review.
A wage-level and selection-odds assessment can identify exposure, improve competitiveness, and reduce compliance risk before the FY 2027 season opens.
