How the H-1B wage-based lottery selection system prioritizes higher-paid workers and what it means for applicants in 2026.
How the H-1B wage-based lottery selection system prioritizes higher-paid workers and what it means for applicants in 2026.
The H-1B wage-based selection system prioritizes lottery registrations by DOL wage level, giving higher-paid workers (Level III and IV) priority over lower-paid workers (Level I and II). The registration fee is $215 per beneficiary. The system applies only to the 85,000 annual cap-subject slots and does not affect cap-exempt employers. Higher wage levels correlate with significantly better selection odds, incentivizing employers to offer competitive salaries.
The wage-based selection system uses DOL prevailing wage levels (I through IV) to prioritize H-1B lottery registrations.
Level IV (highest wages, 67th percentile) registrations are selected first, then Level III (50th), Level II (34th), and Level I (17th).
The annual cap remains at 85,000 (65,000 regular + 20,000 U.S. master's degree holders).
Registration fee is $215 per beneficiary during the March registration window.
Cap-exempt employers (universities, nonprofits, research organizations) are not affected by the wage-based lottery.
Workers in high-cost cities with higher prevailing wages may benefit from the wage-based system.
The O-1A visa, L-1A, and other alternatives bypass the lottery entirely for qualifying individuals.
The wage-based selection system uses DOL prevailing wage levels (I through IV) to prioritize H-1B lottery registrations.
Level IV (highest wages, 67th percentile) registrations are selected first, then Level III (50th), Level II (34th), and Level I (17th).
The annual cap remains at 85,000 (65,000 regular + 20,000 U.S. master's degree holders).
Registration fee is $215 per beneficiary during the March registration window.
Cap-exempt employers (universities, nonprofits, research organizations) are not affected by the wage-based lottery.
Workers in high-cost cities with higher prevailing wages may benefit from the wage-based system.
The O-1A visa, L-1A, and other alternatives bypass the lottery entirely for qualifying individuals.
The H-1B wage-based selection system changes how USCIS selects registrations from the annual H-1B lottery pool. Instead of purely random selection, the system prioritizes registrations based on the prevailing wage level offered to the H-1B worker.
The Department of Labor (DOL) classifies prevailing wages into four levels:
Level I (Entry): 17th percentile of wages for the occupation and area
Level II (Qualified): 34th percentile
Level III (Experienced): 50th percentile (median)
Level IV (Fully Competent): 67th percentile
Under the wage-based system, all Level IV registrations are selected first. If slots remain, Level III registrations are selected, then Level II, and finally Level I.
Learn more about the H-1B visa
Step 1: Employers submit electronic registrations during the March window ($215 per beneficiary), indicating the offered wage and corresponding DOL wage level.
Step 2: USCIS sorts all registrations by wage level (IV, III, II, I).
Step 3: Selection begins with Level IV registrations. If oversubscribed within a level, random selection occurs within that level.
Step 4: The process continues through each level until all 85,000 cap-subject slots are filled.
Step 5: Selected registrants have 90 days to file the full I-129 petition.
Industry | Typical Wage Level | Likely Impact |
|---|---|---|
Big Tech (FAANG) | Level III-IV | Positive - higher selection rates |
Consulting/IT Services | Level I-II | Negative - lower selection rates |
Healthcare | Level II-III | Mixed - varies by specialty |
Finance | Level III-IV | Positive - competitive wages |
Academia | Level I-II | Negative (but many are cap-exempt) |
Startups | Level I-III | Mixed - depends on compensation |
Offer wages at Level III or IV to increase selection probability
Review prevailing wage determinations carefully
Consider geographic location (higher-cost areas have higher prevailing wages)
Explore cap-exempt positions at qualifying institutions
Negotiate higher starting salaries to reach Level III or IV
Consider cap-exempt employers (universities, research organizations)
Explore the O-1A visa (no lottery, no cap) as an alternative
Consider L-1A, E-2, or TN visas that bypass the lottery
Alternative | Key Advantage | Cap |
|---|---|---|
O-1A | No lottery, no degree required | None |
L-1A/L-1B | Intracompany transfer | None |
E-2 | Treaty investor, no lottery | None |
TN (Canada/Mexico) | Streamlined, no lottery | None |
H-1B Cap-Exempt | No lottery for qualifying employers | None |
EB-2 NIW | Self-petition green card | ~40,000/year |
EB-1A | Self-petition green card, current dates | ~40,000/year |
Learn more about the O-1A visa
Item | Cost / Timeline |
|---|---|
Registration fee | $215 |
I-129 filing fee | $1,055 ($530 small employers) |
Asylum Program Fee | $600 ($300 small employers) |
Anti-fraud fee | $500 |
ACWIA fee | $750-$1,500 |
Presidential Proclamation fee | $100,000 (new petitions) |
Premium processing | $2,805 ($2,965 after March 1, 2026) |
Filing deadline | 90 days after selection |
No. Wage level affects lottery selection only. Once filed, USCIS evaluates the petition on its merits.
No. Extensions, transfers, and amendments are not subject to the cap or lottery.
No. The wage level is locked at registration. The final petition must match.
Disclaimer: OpenSphere is not a law firm and does not provide legal advice. This article is for informational purposes only and should not be considered legal counsel. Immigration laws change frequently; always consult with a licensed immigration attorney for advice specific to your situation.
Not sure which visa is right for you? Take OpenSphere's free visa evaluation to get a personalized recommendation in minutes.
The H-1B wage-based selection system changes how USCIS selects registrations from the annual H-1B lottery pool. Instead of purely random selection, the system prioritizes registrations based on the prevailing wage level offered to the H-1B worker.
The Department of Labor (DOL) classifies prevailing wages into four levels:
Level I (Entry): 17th percentile of wages for the occupation and area
Level II (Qualified): 34th percentile
Level III (Experienced): 50th percentile (median)
Level IV (Fully Competent): 67th percentile
Under the wage-based system, all Level IV registrations are selected first. If slots remain, Level III registrations are selected, then Level II, and finally Level I.
Learn more about the H-1B visa
Step 1: Employers submit electronic registrations during the March window ($215 per beneficiary), indicating the offered wage and corresponding DOL wage level.
Step 2: USCIS sorts all registrations by wage level (IV, III, II, I).
Step 3: Selection begins with Level IV registrations. If oversubscribed within a level, random selection occurs within that level.
Step 4: The process continues through each level until all 85,000 cap-subject slots are filled.
Step 5: Selected registrants have 90 days to file the full I-129 petition.
Industry | Typical Wage Level | Likely Impact |
|---|---|---|
Big Tech (FAANG) | Level III-IV | Positive - higher selection rates |
Consulting/IT Services | Level I-II | Negative - lower selection rates |
Healthcare | Level II-III | Mixed - varies by specialty |
Finance | Level III-IV | Positive - competitive wages |
Academia | Level I-II | Negative (but many are cap-exempt) |
Startups | Level I-III | Mixed - depends on compensation |
Offer wages at Level III or IV to increase selection probability
Review prevailing wage determinations carefully
Consider geographic location (higher-cost areas have higher prevailing wages)
Explore cap-exempt positions at qualifying institutions
Negotiate higher starting salaries to reach Level III or IV
Consider cap-exempt employers (universities, research organizations)
Explore the O-1A visa (no lottery, no cap) as an alternative
Consider L-1A, E-2, or TN visas that bypass the lottery
Alternative | Key Advantage | Cap |
|---|---|---|
O-1A | No lottery, no degree required | None |
L-1A/L-1B | Intracompany transfer | None |
E-2 | Treaty investor, no lottery | None |
TN (Canada/Mexico) | Streamlined, no lottery | None |
H-1B Cap-Exempt | No lottery for qualifying employers | None |
EB-2 NIW | Self-petition green card | ~40,000/year |
EB-1A | Self-petition green card, current dates | ~40,000/year |
Learn more about the O-1A visa
Item | Cost / Timeline |
|---|---|
Registration fee | $215 |
I-129 filing fee | $1,055 ($530 small employers) |
Asylum Program Fee | $600 ($300 small employers) |
Anti-fraud fee | $500 |
ACWIA fee | $750-$1,500 |
Presidential Proclamation fee | $100,000 (new petitions) |
Premium processing | $2,805 ($2,965 after March 1, 2026) |
Filing deadline | 90 days after selection |
No. Wage level affects lottery selection only. Once filed, USCIS evaluates the petition on its merits.
No. Extensions, transfers, and amendments are not subject to the cap or lottery.
No. The wage level is locked at registration. The final petition must match.
Disclaimer: OpenSphere is not a law firm and does not provide legal advice. This article is for informational purposes only and should not be considered legal counsel. Immigration laws change frequently; always consult with a licensed immigration attorney for advice specific to your situation.
Not sure which visa is right for you? Take OpenSphere's free visa evaluation to get a personalized recommendation in minutes.
Frequently Asked Questions
What wage level do I need to get selected in the H-1B lottery?
There is no guarantee at any level. Level IV registrations are selected first, then Level III, II, and I. In practice, Level III and IV registrations have significantly higher selection rates. The exact cutoff depends on total registrations and distribution across wage levels each year.
What wage level do I need to get selected in the H-1B lottery?
Does the wage-based system apply to H-1B transfers?
No. Wage-based selection only applies to new cap-subject registrations. H-1B transfers, extensions, and amendments are exempt from the cap and lottery. Workers already in H-1B status can change employers at any wage level without the lottery.
Does the wage-based system apply to H-1B transfers?
How are prevailing wage levels determined?
DOL determines prevailing wages based on occupation (SOC code) and geographic area. Level I is the 17th percentile, Level II the 34th, Level III the 50th (median), and Level IV the 67th percentile. Employers use the DOL Online Wage Library or request a prevailing wage determination before filing the LCA.
How are prevailing wage levels determined?
What are my options if I am at Level I and unlikely to be selected?
Consider: (1) O-1A visa with no lottery for extraordinary ability individuals. (2) Cap-exempt employers (universities, research orgs). (3) L-1A/L-1B for intracompany transfers. (4) EB-2 NIW self-petition green card. (5) Negotiate higher salary to qualify for Level II or III.
What are my options if I am at Level I and unlikely to be selected?
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