New H-1B Rule Puts Level 1 Wages Under the Microscope

The U.S. Department of Homeland Security has implemented a wage‑weighted selection process for H‑1B cap registrations, a shift that makes 2026 a more challenging year for employers relying on entry‑level (Level 1) wages. The change matters because it nudges the program toward higher pay and tighter documentation—raising the bar for how companies describe roles, choose SOC codes, and justify salaries.

What Changed

DHS finalized a rule that took effect on February 27, 2026, replacing the pure random draw with a process that weights each unique beneficiary’s chance of selection by the highest OEWS wage level the offered salary meets or exceeds for the occupation and location. The Government Accountability Office classified the regulation as a major rule on January 20, 2026. In practical terms, registrations now carry more or less weight depending on whether the proffered wage aligns with Level I, II, III, or IV in the OEWS framework.

USCIS also emphasized integrity checks. Registrations must include the SOC code, area of intended employment, and the OEWS wage level; and the subsequent petition must correspond to the wage level current as of the registration date. The final rule details evidence expectations and warns against manipulation—such as toggling locations or SOC codes—requiring petitioners to substantiate the selected level and, for multi‑site roles, to anchor it to the lowest applicable wage level among the listed locations.

Why Level 1 Faces Heat

The weighting inherently favors higher wage levels and reduces the relative odds for lowest‑paid registrations. DHS’s analysis in the final rule projects a meaningful decline in selections tied to Level 1—reflecting the policy aim to tilt outcomes toward roles requiring greater skills and pay. DHS estimates Level 1 selections could fall by roughly 48% compared with the prior system’s outcomes, depending on occupation mix and filing patterns.

Separately, the Department of Labor updates OEWS data annually for the wage year spanning July through June. For the current cycle, DOL set new prevailing wage data for July 2025 through June 2026. Those fresh figures reset the thresholds employers must meet, which can tip a registration from one wage level to another and, under the new selection rule, change the odds of being picked.

How Employers Should Respond

Scrub job descriptions, confirm the most accurate SOC, and document why the duties and minimum requirements support the selected wage level. Keep the offered pay aligned with OEWS data as of the registration date and ensure the petition and LCA match those details. For genuinely entry‑level roles, anticipate deeper questioning and prepare contemporaneous evidence—organizational charts, supervision plans, training outlines, and market data—to show the position still qualifies and that Level 1 is appropriate for the duties.

Sources

• Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H‑1B Petitions (Final Rule) — Federal Register (December 29, 2025)
• Department of Homeland Security: Weighted Selection Process for Registrants and Petitioners Seeking To File Cap‑Subject H‑1B Petitions — U.S. GAO (January 20, 2026)
• On July 1, 2025, OFLC will publish OEWS prevailing wage data for the July 2025–June 2026 wage year — U.S. Department of Labor (July 1, 2025)
• H-1B Wage Levels in 2026: Why Level 1 Positions Are Facing Increased Scrutiny — Reddy Neumann Brown PC (March 2026)