H-1B in 2026: The $100,000 Fee, the New Weighted Lottery, and What Employers Should Do Now

The H-1B visa program is changing faster than at any point in recent memory. Three major developments in the first half of 2026 are reshaping how New York employers approach hiring foreign talent — and the decisions you make in the next few months could significantly affect your ability to sponsor H-1B workers in 2027 and beyond.

The random H-1B lottery is gone – replaced by a wage-weighted system

Effective February 27, 2026, USCIS replaced the longstanding random H-1B cap lottery with a wage-weighted selection process. Under the new system, registrations are no longer selected at random — instead, higher wage level positions receive priority in the selection pool. The new process governs the H-1B cap lottery registration season, which opened in early 2026.

Wage levels are determined by the Department of Labor’s prevailing wage system and reflect seniority and job complexity within a specific occupation and geographic location. This means that a position’s wage level is not simply a function of how much the employer pays — it reflects where the role falls within the DOL’s occupational wage tiers for your area.

The practical implication for New York employers: positions classified at Wage Level I or II — common for entry-level and early-career roles — will face a lower probability of selection compared to Level III and IV positions. Employers who rely on H-1B workers at earlier career stages should reassess their hiring strategies and explore whether wage level reclassification or alternative visa categories are appropriate for their workforce needs.

The $100,000 H-1B fee – where things stand

A Presidential Proclamation requiring employers to pay an additional $100,000 per H-1B visa as a condition of eligibility has been one of the most contested immigration developments of 2026. Multiple lawsuits are currently challenging the fee across federal courts, filed by states and industry groups arguing the administration exceeded its authority.

As of the date of this post, the fee has been upheld under certain conditions — particularly for new H-1B petitions involving consular processing outside the United States. Extensions filed within the U.S. may not be subject to the fee under current guidance, though this remains subject to change as litigation progresses.

The policy environment remains unstable. Employers should avoid making irreversible hiring decisions based solely on current interpretations. Staying in close contact with immigration counsel is essential — the fee structure and its applicability to specific petition types could shift significantly depending on court outcomes in the coming months.

Prevailing wage methodology overhaul – proposed rule now open for comment

On March 27, 2026, the Department of Labor published a proposed rule that would revise the prevailing wage methodology for the H-1B, H-1B1, E-3, and PERM programs. The proposal would use updated percentile thresholds from Bureau of Labor Statistics data to bring wages paid to H-1B workers closer to market rates for similarly employed U.S. workers.

If finalized, this rule would increase the minimum wages that employers must pay H-1B workers — particularly at the lower wage levels — which in combination with the new weighted lottery creates a significant shift toward higher-wage H-1B sponsorship across the board. Comments on the proposed rule were due 60 days after the March 27 Federal Register publication.

What employers should do right now

• Assess your current H-1B workforce by wage level and identify any positions that may be disadvantaged under the new weighted lottery
• Review the $100,000 fee exposure for any pending or planned new H-1B petitions — particularly those involving workers currently outside the United States
• Evaluate alternative visa categories — TN, O-1A, L-1, or EB-2 NIW — for workers who may be adversely affected by the new lottery weighting or fee structure
• Monitor prevailing wage litigation and rulemaking developments closely — the landscape could shift materially before the FY 2028 cap season
• Consult with immigration counsel before making hiring decisions that depend on H-1B availability in 2027

A note on timing

The convergence of these three changes — the weighted lottery, the $100,000 fee litigation, and the prevailing wage overhaul — makes 2026 an unusually complex year for H-1B planning. The employers who navigate it best will be those who engage counsel early, assess their workforce holistically, and build contingency strategies rather than assuming historical patterns will hold.

Parandian Law represents New York employers and H-1B employees across all aspects of business immigration. If you have questions about how these developments affect your specific situation, contact our White Plains office for a consultation.