The FY-2027 H-1B cap season introduces significant structural changes that will directly impact employer sponsorship strategy. The registration window will run from March 4–19, 2026. Even for employers who have not finalized their decision on Cap H-1B sponsorship, it’s not too late.
There are two major developments that have contributed to this new landscape.
1. Potential $100,000 Fee for Certain H-1B Cases
A Presidential Proclamation establishes a $100,000 fee for certain H-1B petitions where the sponsored worker:
- Is outside the United States
- Must travel internationally to activate their H-1B (and apply at a U.S. Consulate abroad, if applicable)
- Does not already hold valid H-1B status
Importantly, most petitions will not be impacted. The fee generally does not apply to:
- Change of status petitions (e.g. F-1 to H-1B)
- H-1B extensions and amendments
- H-1B change of employer petitions (“H-1B transfers”)
However, even if the petition requests change of status or extension/amendment, if USCIS disagrees (e.g. due to criminal issues or immigration violations), the $100,000 could be triggered. Therefore, employers should carefully assess risk.
A national interest exception may be available where payment of the fee would undermine U.S. interests. Employers in sectors such as technology, AI, healthcare, research, infrastructure, or other critical industries may have strong exemption arguments if properly documented.
With the $100,000 Fee, Should Employers Automatically Rule Out the H-1B Lottery?
No. There are currently 3 different lawsuits filed in the federal courts that could invalidate the $100,000 fee. Even if the fee still stands, employers have options. They can wait until later in the filing window (open April 1 until June 30) to file the H-1B petition, based on how the litigation plays out. If the employer files the H-1B petition and USCIS issues a Request for Evidence demanding the $100,000 fee, the employer can withdraw the petition and avoid payment.
2. Wage-Weighted Lottery System
The new cap H-1B lottery framework is built on a new wage-based selection system. For each registration, employers will need to indicate the occupational code, the geographic location for the sponsored role, and the wage level that the proffered wage meets or exceeds, based on wage data from the U.S. Department of Labor’s Occupational Employment and Wage Statistics (OEWS).
The number of entries in the lottery will be based on the OEWS wage level that the salary meets or exceeds:
- Level IV → 4 entries
- Level III → 3 entries
- Level II → 2 entries
- Level I → 1 entry
Therefore, higher wage levels will increase selection probability. This change has meaningful implications for workforce planning, particularly for entry-level and early-career hires. Employers should also expect heightened scrutiny: Standard Occupational Codes (SOC) and geographic location used in the registration must match the LCA. Discrepancies can result in denial or revocation of the petition.
Employer Action Steps
Employers can achieve H-1B success for their employees through careful and proactive planning:
- Identify cap candidates who may trigger the $100,000 fee.
- Evaluate potential exposure to the $100,000 fee and explore whether an exemption may apply.
- Align compensation strategy with lottery weighting.
- Finalize job duties, wage levels, and work locations before registration
- Prepare national interest documentation early, where appropriate
Bottom Line
The FY-2027 H-1B season marks a shift from volume-based filings to strategic workforce planning. Employers that assess $100,000 risk early, align compensation thoughtfully, and ensure registration accuracy will be best positioned for success.
If you have questions about how these changes may impact your organization’s H-1B strategy, please contact your WR Immigration team.
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