Overview of the H-1B cap and lottery
Each fiscal year, USCIS makes 65,000 new H-1B visas available for workers in specialty occupations, plus an additional 20,000 for beneficiaries who hold a U.S. master's degree or higher. Because demand far exceeds supply, USCIS uses an electronic registration lottery to determine which employers can file H-1B cap-subject petitions.
The FY2027 H-1B cap season (for employment starting October 1, 2026) brings several important changes that employers and beneficiaries should understand well before the registration window opens.
Key dates for FY2027
While USCIS announces exact dates each year, the FY2027 cycle is expected to follow this general timeline:
- Registration period: Early to mid-March 2026. Employers submit electronic registrations through their USCIS online accounts for each prospective H-1B worker.
- Lottery results: Late March 2026. USCIS notifies selected registrants.
- Filing window: April 1 through at least June 30, 2026. Selected employers have at least 90 days to file the full H-1B petition (Form I-129) with all supporting documentation.
- Employment start date: October 1, 2026 (the beginning of fiscal year 2027).
Employers should begin gathering documents and preparing beneficiary information well before March. The registration window is typically only two to three weeks long, and last-minute submissions risk technical issues.
Registration fee: $215 per beneficiary
Each electronic registration costs $215 per beneficiary. This fee was increased from $10 under the 2024 H-1B modernization rule and is non-refundable regardless of whether the beneficiary is selected in the lottery.
Important fee details:
- The $215 registration fee is paid per beneficiary, per registration period.
- If an employer registers the same beneficiary with multiple related entities, each registration requires a separate $215 fee.
- This fee is separate from the petition filing fees that apply after selection.
Beneficiary-centric selection
USCIS now uses a beneficiary-centric selection process, meaning each unique beneficiary gets one chance in the lottery regardless of how many employers register them. This was a major change from the prior system, where each registration was a separate lottery entry.
Under beneficiary-centric selection:
- A beneficiary registered by five different employers has the same chance of selection as one registered by a single employer.
- If a beneficiary is selected, all employers who registered that person are notified and may file petitions.
- This system was designed to reduce the advantage previously held by staffing companies and applicants with multiple registrations.
Planning to sponsor an H-1B worker?
Attorney Arunima Datta helps employers navigate H-1B registration, filing, and compliance. Consultations available in English, Bengali, and Hindi.
Schedule a consultation →Wage-level weighted selection (new for FY2027)
Beginning with the FY2027 cap season, USCIS is implementing a wage-level weighted lottery. Instead of a purely random selection, registrations offering higher prevailing wage levels receive greater weight in the lottery. This is one of the most significant changes to the H-1B program in years.
How it works:
- Level IV wages (highest): Receive the greatest weight in the selection process.
- Level III wages: Receive moderately higher weight than lower levels.
- Level II wages: Receive standard weight.
- Level I wages (lowest): Receive the least weight, making selection less likely but not impossible.
The intent behind this change is to prioritize positions that offer higher compensation, which USCIS views as a proxy for roles requiring more specialized expertise. Employers offering entry-level wages for H-1B positions will face a statistically lower chance of selection.
For employers, this means the prevailing wage determination and the offered salary are now strategically important not only for compliance, but also for lottery odds. Employers should work with counsel to ensure wage levels accurately reflect the complexity of the position.
What happens after selection
If a beneficiary is selected in the lottery, the sponsoring employer has at least 90 days to file the complete H-1B petition. This involves:
- Labor Condition Application (LCA): Filed with the Department of Labor, certifying that the employer will pay the prevailing wage and that the hire will not adversely affect U.S. workers. LCA processing typically takes seven to ten business days.
- Form I-129 petition: Filed with USCIS along with the LCA, supporting documentation (degree evaluations, employer letters, job descriptions), and all applicable fees.
- Premium processing (optional): For an additional fee of $2,805, employers can request a 15-business-day adjudication. This is available for cap-subject petitions.
Filing fees and costs for employers
H-1B filing costs add up quickly. Here is a summary of the main fees for FY2027:
- Registration fee: $215
- Base filing fee (I-129): $780
- ACWIA training fee: $750 (employers with fewer than 26 full-time employees) or $1,500 (26 or more employees)
- Fraud prevention and detection fee: $500
- Asylum program fee: $600 (for employers with 26 or more full-time employees) or $300 (for smaller employers and nonprofits)
- Public Law 114-113 fee: $4,000 (for employers with 50+ employees where more than 50% are on H-1B or L-1 status)
- Large employer fee: $100,000+ (for petitions filed by employers with 1,000 or more employees, effective under recent legislation for certain filers)
- Premium processing (optional): $2,805
Total costs for a single H-1B petition can range from approximately $2,500 to well over $10,000 depending on company size and whether premium processing is used. Employers are legally prohibited from passing filing fees to the H-1B worker.
Cap-exempt employers
Certain employers are exempt from the H-1B cap and do not need to participate in the lottery. Cap-exempt employers include:
- Institutions of higher education (universities and colleges)
- Nonprofit entities related to or affiliated with institutions of higher education
- Nonprofit research organizations
- Government research organizations
Cap-exempt employers can file H-1B petitions at any time during the year. Workers employed by cap-exempt entities who later transfer to a cap-subject employer may need to go through the lottery unless they have been previously counted against the cap within the last six years.
Practical steps for employers
- Identify candidates early. Determine which employees or prospective hires will need H-1B sponsorship before the registration window opens.
- Create or verify your USCIS online account. Registrations are submitted through the employer's USCIS account. Ensure access credentials are current and that your legal representative is properly linked.
- Begin the prevailing wage process. Request a prevailing wage determination from the Department of Labor, or identify the appropriate wage using published wage data. Given the new wage-level weighting, this step has added strategic importance.
- Prepare the LCA in advance. While the LCA cannot be filed until after selection, gathering the required information early saves time during the 90-day filing window.
- Budget for fees. Factor in registration, filing, training, fraud prevention, and potential premium processing fees.
Tips for H-1B beneficiaries
- Confirm your employer's plans. Make sure your employer intends to register you and understands the timeline.
- Gather your documents. Have your degree certificates, transcripts, credential evaluations, and prior immigration documents ready.
- Understand your current status. If you are on OPT, ensure your employment authorization does not lapse. Cap-gap extensions may apply if your OPT expires between April 1 and October 1 and your employer has filed an H-1B petition on your behalf.
- Have a backup plan. The lottery is not guaranteed. Discuss alternatives with your employer and attorney, such as O-1 status, cap-exempt employment, or employer transfer to a qualifying institution.
Next steps
The H-1B lottery is competitive and the rules continue to evolve. The introduction of wage-level weighted selection for FY2027 adds a new strategic dimension that both employers and beneficiaries should factor into their planning.
At AKT LAW, LLC, we guide employers through every stage of the H-1B process, from registration strategy and LCA preparation through petition filing and beyond. If you have questions about the upcoming cap season, we are here to help.