DHS to revive wage-based H-1B visa selection criteria via new rule

DHS to revive wage-based H-1B visa selection criteria via new rule

Summary

The Department of Homeland Security has proposed a rule to weight H-1B registrations by the wage an employer offers, using a four-tier scale so higher-paying roles get more entries in the agency’s allocation process. Each unique beneficiary would be counted once for cap projections, and the change would not alter prevailing wage determinations. DHS says the shift is designed to incentivise higher wages and higher-skilled petitions. The move echoes parts of a 2021 Trump-era rule (which was later rescinded) but stops short of replacing the lottery entirely. The announcement comes amid a separate presidential action imposing a $100,000 fee on new H-1B petitions, which employers and lawyers say may spur budget adjustments and legal challenges.

Key Points

1. DHS proposes weighting H-1B registrations by wage level on a four-tier scale; higher wages get more lottery entries.
2. Each unique beneficiary will be counted only once toward numerical cap projections, regardless of multiple registrations.
3. The proposal does not change how prevailing wages are set, but it prioritises allocation toward higher-paid and higher-skilled roles.
4. This is a partial revival of a 2021 Trump administration policy that was later rescinded; the new proposal is less sweeping than the 2020 rule.
5. The rule follows a separate presidential measure requiring a $100,000 fee for new H-1B petitions — a change likely to affect hiring budgets and face legal challenges.

Content summary

DHS wants to rework how it selects H-1B petitions by giving better chances in the cap allocation to employers who offer higher wages. The agency would slot registrations into a four-tier wage framework and allocate more lottery entries to higher tiers. The change aims to nudge employers toward paying more or sponsoring higher-skilled roles, while still allowing access to lower wage levels. The proposal echoes aspects of a 2021 rule that prioritised wages but does not abolish the lottery system. It arrives alongside a controversial $100,000 fee for incoming H-1B petitions announced by the president, a move prompting immediate employer concern and predictions of litigation.

Context and relevance

For HR, talent acquisition and compliance teams, this is a consequential development. Paying more could materially improve an application’s odds in the H-1B cap process, shifting hiring strategies, salary bands and workforce planning — especially in tech and specialised industries that rely on skilled foreign nationals. The dual pressure of a new wage-weighting proposal and the $100,000 fee means organisations must reassess budgets, recruitment pipelines, and legal risk. If implemented, the rule could accelerate salary inflation for sponsored roles and force some employers to rethink offshore hiring or training strategies.

Why should I read this?

Short version: if you hire people from overseas, this affects your hiring costs and odds of getting visas. It’s a policy that could change how you budget for roles, who you decide to sponsor and how you prioritise candidates. We read the full thing so you don’t have to — but don’t ignore this one.

Source

Source: https://www.hrdive.com/news/dhs-revive-wage-based-h-1b-visa-selection-criteria/760907/