TLDR: The H-1B registration window opens March 4, 2026, and employers need to move quickly. The new wage-weighted lottery rewards higher salary offers with more entries, but only base salary and guaranteed compensation count, bonuses and benefits do not. A $100,000 proclamation fee applies to beneficiaries physically outside the U.S. when petitions are filed after September 2025, though F-1 students already in the U.S. changing status are exempt. Once selected, employers have 90 days to file the full petition. Universities, affiliated nonprofits, and research organizations are exempt from the lottery altogether. And throughout all of this, H-1B compliance remains worksite-specific, any change in work location can trigger amendment requirements.
H-1B Cap Season: The Big Picture
The H-1B visa program allows U.S. employers to sponsor foreign professionals in specialty occupations, roles that typically require at least a bachelor’s degree in a specific field. Each fiscal year, USCIS makes 65,000 regular cap slots available, plus an additional 20,000 for individuals with a U.S. master’s degree or higher.
The registration window opens March 4, 2026. Employers must submit registrations through their myUSCIS account during this window. If selected in the lottery, they then have 90 days from receipt of a selection notice to file the full H-1B petition. Selected petitions approved will result in an October 1, 2026 employment start date.
How the Wage-Weighted Lottery System Works
This is the biggest structural change to the H-1B process in recent memory. Under the old system, every registration had an equal chance of selection. Under the new wage-weighted system, registrations offering higher salaries generate more lottery entries, giving higher-paid positions a better shot at selection.
What Counts Toward Wage Levels
Not all compensation is created equal under this system. Only base salary and guaranteed compensation count toward the wage level used to calculate lottery entries. Bonuses, commissions, equity, and benefits do not count. This matters a great deal for employers in industries like sales, finance, or tech, where total compensation packages often rely heavily on variable pay.
For commission-based roles, employers may want to consider restructuring compensation to increase base salary specifically for H-1B purposes. The goal is to reflect the actual value the employer places on the position in a way that maximizes lottery entries.
How Employers Can Strategize
Employers should think carefully about salary offers for positions with an October 1, 2026 start date. If a promotion or raise is on the horizon, timing it to be effective by October 1 could meaningfully improve lottery odds. Consult your immigration counsel before registration closes to make sure your wage level positioning is as strong as possible.
It is worth noting that as this system is still relatively new, its precise impact across different metropolitan areas and wage levels continues to emerge. Data from early seasons will be closely watched by practitioners and employers alike.
The $100,000 Proclamation Fee: Who Pays It and Who Doesn’t
An executive order issued in September 2025 imposed a $100,000 fee on certain H-1B petitions. Here is the key detail: it only applies to beneficiaries who are physically outside the United States at the time the petition is filed, and only for petitions filed after September 2025.
The order was primarily aimed at third-party IT staffing companies that bring in applicants with limited ties to the United States. However, its reach is broader in practice: any candidate located abroad, whether in London, Sydney, Toronto, or elsewhere, being hired by a U.S. employer would be subject to this fee.
Who Is Exempt
F-1 students currently in the United States who are changing status to H-1B are not subject to the fee. If a candidate is already in the U.S. on a valid visa at the time the petition is filed, the fee does not apply.
It is also worth noting that legal challenges to this fee are already underway. A recent Supreme Court decision regarding presidential tariff authority included language suggesting that a flat fee of this kind may constitute an impermissible tariff, and several lawsuits are pending. Employers should stay informed on this developing area of law.
After Selection: Filing the Full Petition
If your registration is selected, you will receive a notification in your myUSCIS account beginning in mid- to late March 2026. From that point, you have 90 days to file the complete H-1B petition. Here is what that process involves.
Labor Condition Application (LCA)
Before filing with USCIS, the employer must obtain a certified Labor Condition Application (LCA) from the U.S. Department of Labor. The LCA requires the employer to attest that the wage offered meets or exceeds the prevailing wage for the position and location, and that hiring this worker will not adversely affect similarly employed U.S. workers.
Public Access File and Supporting Documentation
Employers must also maintain a Public Access File (PAF) that documents compliance with wage and working condition requirements. The PAF must be available for inspection and demonstrates that the employer is not undercutting American workers.
Supporting documentation for the full petition must establish three things: the position is a specialty occupation requiring at least a bachelor’s degree in a related field, the candidate meets those educational and experience requirements, and the employer has the financial ability to pay the offered wage.
Lottery-Exempt Employers: You May Not Need to Register
Not every employer needs to enter the lottery. The following categories are exempt from the H-1B cap entirely:
- Institutions of higher education (colleges and universities)
- Nonprofit organizations affiliated with a university, such as teaching hospitals
- Nonprofit research organizations
- Government research organizations
Additionally, individuals who have previously been counted against the H-1B cap and are transferring to a new employer, or extending their status with their current employer, do not need to re-enter the lottery. This provides important flexibility for employers looking to hire experienced H-1B workers already in the U.S.
H-1B Worksite Compliance: Don’t Overlook This
H-1B status is tied to the specific worksite where the employee performs their work, not just their employer. This is a compliance area that catches many companies off guard, especially as remote and hybrid work arrangements have become common.
For remote workers, the employee’s home address is treated as the worksite. Wage analysis under the LCA must be based on that location, not corporate headquarters. If a worker moves, even across county or state lines, immigration counsel should be notified, as an amendment petition may be required.
Before the March 4 registration window closes, employers should audit their workforce to identify current employees who may need H-1B sponsorship in the near future, particularly F-1 students on OPT or STEM OPT whose work authorization will expire. To prepare registrations properly, immigration counsel will need educational credentials, detailed job descriptions, and all current and anticipated worksite locations.
Preparation Wins the H-1B Lottery
The 2026 H-1B cap season rewards employers who come prepared. Under the wage-weighted lottery, salary strategy matters more than ever. Understanding which candidates are subject to the $100,000 fee, building out complete petition documentation, and keeping worksite information current are all essential to a compliant and competitive H-1B program.
If you haven’t already started working with immigration counsel on your FY 2027 registrations, now is the time. The registration window is open, and every day counts. Contact Berardi Immigration Law today, and let our team help you successfully begin your journey towards your American dream.
Frequently Asked H-1B Lottery Questions
Q: Do bonuses count toward the wage level in the new lottery system?
No. Only base salary and guaranteed compensation count. Bonuses, commissions, equity awards, and benefits are excluded. Employers looking to maximize lottery entries should focus on the guaranteed, fixed portion of an employee’s compensation.
Q: My company wants to hire a candidate currently living abroad. Do we have to pay the $100,000 fee?
Yes, if the candidate is physically outside the United States when the petition is filed (and the petition is filed after September 2025), the $100,000 proclamation fee applies. However, legal challenges to this fee are pending, and employers should monitor developments with their immigration counsel.
Q: One of our H-1B employees just moved to a new city and is working remotely. Do we need to file anything?
Possibly. H-1B status and Labor Condition Applications are tied to specific worksites. A change in work location, including a move by a remote employee, may require a new LCA and an amended petition. Notify your immigration counsel promptly whenever an H-1B employee’s worksite address changes.
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