H-1B Selection Process Change

The Department of Homeland Security (DHS) submitted a proposed rule to the Office of Information and Regulatory Affairs (a division of the Office of Management and Budget) that would replace the current H-1B lottery system with a weighted selection process. This regulatory development could have significant implications for U.S. employers, foreign students, and current H-1B workers. However, fully implementing this new selection process will take several months.

The government implemented the current H-1B selection process in 2021. It ignores wage-based prioritization of beneficiaries. The government is now undoing those parameters.

Applicants filing for the highest paying positions will be prioritized in the selection process. Afterward, the selection prioritization proceeds in descending order. Level four beneficiaries receive priority when selections are made, followed by level three and so on. The levels range from Level 4, Advanced, to Level 1, Entry-Level.

The goal is to increase the amount of highly skilled professionals that receive visas and U.S. job positions. The new selection process may also result in fewer visas for beneficiaries at lower levels. Many foreign students transition from student visas to a H-1B after finishing their studies. The new selection process could decrease those transitions.

Many long term H-1B employers typically hire for entry-level positions like career researchers, engineers, and doctors. The new selection process will likely decrease the number of available visas for these roles.

The DHS sent the proposed selection process to the OMB. The DHS publishes it in the federal register, following a ninety day review period. The timing makes it unlikely to take effect for the FY2027 H-1b cap season, however, that is not certain.

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