Understanding the Real Game-Changers in the New System
The Department of Homeland Security just changed how H-1B visas are selected. The new system takes effect February 27, 2026, and will be used starting with the 2027 selection. While news coverage focuses on weighted selection, the real story is more surprising.
[For basics on how the weighted selection works including the 4x, 3x, 2x, and 1x system see our previous post: Understanding the H-1B Weighted Selection Process.]
This post explains what will actually happen in practice, not just what the rules say on paper.
Everyone is talking about weighted selection. But highly skilled professionals may be impacted by: the $100,000 filing fee.
Who Pays This Fee?
Important: This fee only applies to workers coming from outside the United States. If you’re already in the U.S. (for example, on a student visa or another work visa), this fee does not apply to you.
But for people applying from abroad, this $100,000 fee changes everything.
The Reality: Most employers will likely not pay this fee.
Companies may or may not choose to pay $100,000 to bring someone from abroad.
This creates several effects:
- Small and medium-sized companies can’t afford it
- Many qualified workers from abroad won’t even get a selection entry
- Far fewer people will be in the selection pool
- Even highly paid positions may not be worth the fee to employers
This is the hidden story: the weighted selection favors higher wages, but the $100,000 fee prevents many high-wage workers from abroad from entering the selection at all. Meanwhile, people already in the U.S. don’t face this barrier.
Why the Highest Wage Level Won’t Dominate
You might think Wage Level 4 candidates, the highest-paid workers who get entered into the selection four times would win most of the spots. But that might not happen anymore.
The Sweet Spot: Wage Levels 2 and 3
Here’s the surprising conclusion: Wage Levels 2 and 3 become the best positions to be in under the new system.
Why These Middle Levels Win
Wage Level 2 and 3 workers benefit from a perfect situation:
- They get extra selection entries: 2x or 3x compared to Level 1
- Less competition from Level 4: Because fewer Level 4 candidates from abroad will enter
- Affordable for employers: Companies can justify the costs for these positions
- More positions available: More jobs naturally fall into Levels 2 and 3
This is a huge advantage compared to previous years. If you can structure your position to reach Level 2 or 3, you significantly improve your chances.
The Master’s Degree Advantage
If you have a U.S. master’s degree with a Level 2 or 3 position you still have two chances by entering the standard pool (65,000) and the Master’s Cap (20,000) pool as well.
U.S. master’s degree + Wage Level 2 or 3 = very strong chances.
What About Wage Level 1?
Level 1 positions only get one selection entry. They compete against people with 2x, 3x, and 4x advantages. The new system makes Level 1 positions much harder. If you’re at Level 1, talk to an immigration attorney about whether H-1B is still your best option.
What You Need to Do
1. Strategy Matters Now
A good strategy will be prudential to an employer successfully hiring talent using the H1-B pathway.
It matters how salary offers compare to wage levels for said occupation and worksite location. The job offer (along with job code, title, description, experience & educational requirements) and worksite location must be analyzed to determine the ideal Wage Level that can be argued.
Employers need to think carefully about:
- How the salary compares to Department of Labor wage levels for your occupation and location
- Whether the job title and description match the wage level you want
- What education and experience requirements you list
- Where the person will work (location affects wage levels)
Important: Talk to an immigration lawyer before you finalize salary, job title, or job description. These decisions now directly affect your selection chances.
2. Prepare Early
The government may still change forms, requirements, or procedures. Early preparation protects you.
What to do now:
- Start Labor Condition Applications early to lock in wage levels
- Prepare documentation before the selection opens
- Get your wage level determined before any rule changes
3. Consider Part-Time Wage Level 4
Here’s a creative solution: highly skilled workers can sometimes qualify for part-time Wage Level 4 positions.
This gives you:
- The 4x selection advantage
- Without the full-time Level 4 salary cost
- Making it more affordable for employers
This works well for consulting roles, research positions, or expert advisory work. It requires careful setup, but can be a smart strategy for the right people.
4. Be Accurate Mistakes Are Expensive
The government will deny petitions if:
- Your registration information is inaccurate
- You try to game the system by changing wage levels after selection
- Your job description doesn’t support your claimed wage level
If you’re denied, you don’t get refunds including the $100,000 fee. Accuracy is critical.
5. Contact Your Immigration Lawyer Now
If you’ve worked on H1-B selection with us before, we highly recommend you reach out for strategy consultations soon. If you’re new to the H-1B process, now is the time to get professional guidance. The system is more complex than ever, and the stakes are higher.
Other Options Besides H-1B
Given the new costs and complexity, you should also explore other visa types. Some people may find better paths through O-1 visas (for extraordinary ability) or L-1 visas (for transferring within a company).
[For detailed information on O-1 and L-1 visas as alternatives, see our post: Alternative Visa Pathways When H-1B Is Not Viable.]
Bottom Line: Focus on What Really Matters
The H-1B system has fundamentally changed. Success requires understanding what will actually happen, not just what the rules say.
Key points to remember:
- The $100,000 fee only affects people coming from abroad but it’s a bigger deal than the selection changes
- People already in the U.S. have a major advantage
- Wage Levels 2 and 3 are the sweet spots
- Level 4 won’t dominate because of cost barriers
- How you structure job descriptions now affects selection odds
- Early preparation gives you more options
If you’re considering H-1B sponsorship whether as an employer or worker get professional guidance early. The days of treating H-1B as a simple selection are over.
About This Guide
This guide is based on the final rule published by the Department of Homeland Security on December 29, 2025 (90 FR 60864), effective February 27, 2026. This information is for educational purposes and should not be considered legal advice. Every situation is different, consult with an immigration attorney about your specific circumstances.
