H-1B Cap Season Registration Guide for Employers 2026

The H-1B visa allows U.S. employers to hire foreign professionals in specialty occupations requiring at least a bachelor's degree or equivalent. Each fiscal year, the government limits new H-1B approvals to 85,000 (65,000 regular cap plus 20,000 for holders of U.S. advanced degrees), making the annual cap season registration the single most important step in the process. This guide walks employers and employees through the complete FY2026 cap season, from electronic registration through petition filing, covering the beneficiary-centric lottery, updated fees, filing requirements, compliance obligations, and what to expect for FY2027, incorporating the policy changes under the H-1B Modernization Rule that took effect January 17, 2025.

Key Takeaways

• The FY2026 H-1B lottery selection rate reached approximately 35.3%, the highest since electronic registration began in 2020, driven by the beneficiary-centric system and a registration fee increase from $10 to $215.
• Registration window: March 7 through March 24, 2025, with selection notifications by March 31 and a filing period from April 1 through June 30, 2025.
• The beneficiary-centric lottery eliminated mass duplicate registrations, with multi-employer registrations dropping from 408,891 in FY2024 to just 7,828 in FY2026.
• Total employer filing costs range from approximately $2,225 to $3,595+ depending on company size, before optional premium processing ($2,965, increasing to $2,965 on March 1, 2026) and before the $100,000 supplemental fee imposed by Presidential Proclamation 10973 on certain new petitions for beneficiaries outside the U.S.
• The H-1B Modernization Rule clarified specialty occupation standards, codified deference to prior approvals, expanded site visit authority, and enabled entrepreneur self-sponsorship.
• A wage-weighted lottery replaces the random selection system starting FY2027, giving higher-wage positions more entries in the drawing.

H-1B Cap Season FY2026: Complete Timeline

Understanding the full sequence of events helps employers plan internal processes, coordinate with employees, and meet every deadline. Missing even one step can eliminate a candidate from the year's lottery entirely. The complete cycle from registration to employment start date spans approximately seven months.

Phase 1: Pre-Registration Preparation (January to Early March 2025)

Before the registration window opens, employers must identify prospective H-1B candidates, confirm each candidate holds (or will hold) a qualifying degree for a specialty occupation role, and ensure the company's USCIS organizational account is properly set up. Three account types exist in the USCIS system: organizational/company accounts (required for registration), attorney/legal representative accounts (for representatives filing on behalf of employers), and applicant/petitioner/requestor accounts (which cannot be used for H-1B registration).

What employers and employees should prepare:

Valid passport or travel document data for each beneficiary is required. This requirement was introduced for FY2025 to support the beneficiary-centric lottery and prevents a single individual from receiving multiple entries under different names or documents. Basic biographical information is also needed, including full legal name, date of birth, country of birth, country of citizenship, and gender as listed on the passport. Employers should confirm that the role qualifies as a specialty occupation under the updated Modernization Rule standards: the position must require at least a bachelor's degree in a specific field that has a direct, logical connection to the job duties. Budget approval for registration and filing fees is also necessary. The $215-per-registration fee is non-refundable regardless of lottery outcome, and total petition costs (if selected) run $2,225 to $3,595+ depending on employer size.

Common pre-registration delays and how to avoid them:

Beneficiaries with expired or expiring passports should renew well before registration opens, as USCIS requires valid travel document data at the time of registration. Organizational accounts in the USCIS system should be created or verified in January or February; account verification can take several business days. If the beneficiary holds a foreign degree, the credential evaluation process should begin early so the equivalency report is ready before petition filing. Internal management sign-off and legal budget allocation should be secured before March to avoid last-minute issues during the short registration window.

Phase 2: Electronic Registration and Lottery (March 2025)

The FY2026 registration window opened at noon Eastern on March 7, 2025, and closed at noon Eastern on March 24, 2025, giving employers a 17-day window. For each beneficiary, the employer enters the individual's biographical and passport information, pays the $215 non-refundable registration fee, and signs an attestation under penalty of perjury confirming the information is complete and true, the registration reflects a legitimate job offer, and the employer has not colluded with others to inflate selection odds.

Only one registration per employer per beneficiary is permitted. Submitting duplicates from the same employer invalidates all registrations for that beneficiary by that employer. Other employers' registrations for the same beneficiary remain unaffected.

FY2026 system improvements included a new spreadsheet upload capability for bulk pre-population of beneficiary data, the ability for paralegals to accept invitations from multiple legal representative accounts, auto-population of certain Form I-129 fields from selected registrations, and a temporary credit card transaction limit increase to $99,999.99 per day for the cap season.

USCIS sent selection notifications through online accounts by March 31, 2025. For FY2026, USCIS received 343,981 eligible registrations covering approximately 339,000 unique beneficiaries (of whom 336,153 had only a single registration), selected 118,660 of them, and reached the cap without conducting a second lottery.

How the beneficiary-centric lottery works

Implemented starting FY2025, the beneficiary-centric lottery counts each unique beneficiary only once regardless of how many employers registered them. Under the previous system, multiple employers registering the same worker generated multiple lottery entries, creating incentives for mass speculative submissions. Now, if a beneficiary is selected, all employers who registered that individual may file petitions. The lottery operates in two phases: first, all registered unique beneficiaries enter the regular cap selection (65,000 visas minus 6,800 reserved for Chile/Singapore nationals). Unselected beneficiaries claiming a U.S. master's degree or higher then enter the advanced degree exemption pool (20,000 additional visas), giving advanced degree holders two chances at selection.

FY2026 registration statistics at a glance

• For FY2024, USCIS received 758,994 eligible registrations with 408,891 multi-employer registrations, covering approximately 446,000 to 450,000 unique beneficiaries. A total of 188,400 were selected across two lottery rounds, yielding an overall selection rate of approximately 24.8% (the initial-round rate was approximately 14.6%).

• For FY2025, USCIS received 470,342 eligible registrations with 47,314 multi-employer registrations, covering approximately 442,000 unique beneficiaries. A total of 127,624 were selected, for an approximate selection rate of 29%.

• For FY2026, USCIS received 343,981 eligible registrations with just 7,828 multi-employer registrations, covering approximately 339,000 unique beneficiaries. A total of 118,660 were selected, for an approximate selection rate of 35.3%.

The collapse in multi-employer registrations from 408,891 in FY2024 to just 7,828 in FY2026 confirms the beneficiary-centric system effectively ended gaming. Average registrations per beneficiary dropped to 1.01.

Phase 3: LCA Filing and Petition Preparation (April to June 2025)

After receiving a selection notification, the employer must prepare and file Form I-129 (Petition for Nonimmigrant Worker) within the filing window of April 1 through June 30, 2025. Before filing the I-129, the employer must obtain a certified Labor Condition Application (LCA).

LCA requirements (Form ETA 9035/9035E)

The LCA is filed electronically through the DOL FLAG system, with the Department of Labor certifying applications within 7 working days. The employer makes four mandatory attestations: paying at least the higher of the actual wage or prevailing wage for the occupation and geographic area; not adversely affecting working conditions of similarly employed U.S. workers; no strike or lockout exists at the place of employment; and proper notice has been given. Employers must post the LCA at the worksite in at least two conspicuous locations for 10 consecutive days, or provide equivalent electronic notice.

Required petition documentation includes:

Form I-129 with the H Classification Supplement and the H-1B Data Collection and Filing Fee Exemption Supplement; a certified LCA matching the job title, duties, wage, and worksite listed in the petition; the beneficiary's passport copy (which must match registration data exactly); educational credentials with evaluations for foreign degrees showing U.S. equivalency; a detailed employer support letter describing the position's duties, requirements, and why they require specialized knowledge; evidence of the specialty occupation nature, including industry standards, expert opinions, or past USCIS approvals for similar positions; the beneficiary's resume and qualifications demonstrating they meet the degree and experience requirements; evidence of the employer-employee relationship, particularly important for staffing companies, consulting firms, or entrepreneurs; and maintenance-of-status documentation for beneficiaries already in the U.S. (such as current I-20, I-94, or prior approval notices).

Streamline Your H-1B Filing with Alma

• Alma's H-1B visa platform combines attorney expertise with technology to handle cap registration and petition filing. Alma charges a flat fee of $500 for lottery registration and $3,500 for H-1B cap filing, with no hourly billing. Their attorneys handle the full process: LCA filing, I-129 preparation, evidence organization, and RFE responses included in the base fee. The platform provides real-time case tracking, direct attorney communication, and proactive deadline management. For employers filing multiple petitions, Alma's technology automates document organization and form population across cases.

Phase 4: USCIS Adjudication

Once filed, USCIS reviews the petition and issues one of several outcomes: approval, Request for Evidence (RFE), Notice of Intent to Deny (NOID), or denial. Processing times are uniform across service centers; check the USCIS Processing Times tool for current estimates. Premium processing guarantees a response within 15 business days for an additional fee.

• Standard processing follows variable timelines. Check USCIS processing times for current estimates. The cost is limited to base filing fees (see fee breakdown below), and predictability is lower, as complex cases can extend beyond posted times.

• Premium processing guarantees a 15-business-day response window. The cost is $2,965 through February 2026, increasing to $2,965 effective March 1, 2026. USCIS refunds the fee if it misses the deadline. If an RFE is issued during premium processing, a new 15-business-day clock starts upon receipt of the response.

Premium processing does not improve approval odds; it only accelerates the timeline to a decision. Employers typically pay the premium processing fee, though employees may pay if it is primarily for their benefit and does not reduce their effective compensation below the required wage level.

Employment for approved beneficiaries can begin no earlier than October 1, 2025, the start of federal fiscal year 2026.

Complete Fee Breakdown for Employers

H-1B petition costs vary significantly based on employer size. Below is the full breakdown for a new cap-subject petition filed in FY2026.

• Large employer (26+ full-time equivalent employees): The registration fee is $215; the I-129 base filing fee is $780 (with a $50 online filing discount available, reducing it to $730); the ACWIA training fee is $1,500; the Fraud Prevention fee is $500; and the Asylum Program fee is $600. This produces a subtotal of $3,595 without premium processing (or $3,545 with the online filing discount).

• Small employer (25 or fewer full-time equivalent employees): The registration fee is $215; the I-129 base filing fee is $460 (no online filing discount is available at this rate); the ACWIA training fee is $750; the Fraud Prevention fee is $500; and the Asylum Program fee is $300. This produces a subtotal of $2,225 without premium processing.

• Qualifying nonprofit (as defined in INA § 214(c)(9)(A), including institutions of higher education, their affiliated nonprofit entities, and nonprofit or governmental research organizations): The registration fee is $215; the I-129 base filing fee is $460; the ACWIA training fee is exempt; the Fraud Prevention fee is $500; and the Asylum Program fee is exempt. This produces a subtotal of $1,175 without premium processing. Note that general 501(c)(3) nonprofits not within these specific statutory categories must still pay the ACWIA training fee and may owe the Asylum Program fee.

Premium processing adds $2,965 (through February 2026) or $2,965 (effective March 1, 2026) to any of the above totals.

The Asylum Program Fee ($600 standard, $300 small employer, $0 qualifying nonprofit) was introduced under the USCIS fee rule effective April 1, 2024. The Public Law 114-113 fee of $4,000 applies only to employers with more than 50 employees (full-time and part-time combined) where over 50% hold H-1B or L-1 status. The ACWIA training fee, Fraud Prevention fee, and Asylum Program fee must be paid exclusively by the employer and cannot be passed to the employee.

The registration fee increased from $10 to $215 for FY2026, a change established under the USCIS fee rule published January 31, 2024 and effective April 1, 2024. This increase served a dual purpose: generating revenue for USCIS operations and discouraging the mass speculative registrations that plagued FY2023 and FY2024.

$100,000 supplemental fee (Presidential Proclamation 10973)

• Signed September 19, 2025, Presidential Proclamation 10973 imposes a $100,000 one-time supplemental fee on certain new H-1B petitions where the beneficiary is outside the United States and does not hold valid H-1B status. This fee is in effect through September 21, 2026 and applies to FY2027 cap petitions requesting consular processing, among other scenarios. Multiple legal challenges have been filed, but as of March 2026, the fee remains in effect after being upheld at the district and circuit court levels. Employers planning FY2027 filings that involve consular processing should factor this cost into their budgets.

Cap-Exempt Employers: Filing Without the Lottery

Certain employers are exempt from the annual 85,000 H-1B cap under INA § 214(g)(5). These organizations can file H-1B petitions year-round with no numerical limit and no lottery requirement:

Institutions of higher education are accredited U.S. colleges or universities awarding bachelor's degrees or higher, meeting the definition in § 101(a) of the Higher Education Act of 1965. Nonprofit entities related to or affiliated with institutions of higher education must have a formal written affiliation agreement and demonstrate a fundamental activity contributing to the institution's research or education mission. Nonprofit research organizations have their primary purpose in basic or applied research, as defined at 8 CFR 214.2(h)(19)(iv). Government research organizations at the federal, state, or local level are those primarily engaged in research.

Under the Modernization Rule, the beneficiary must spend the majority of work time performing duties at the cap-exempt entity. Work "at" the institution includes on-site, telework, and remote work within the U.S. Employees transitioning from a cap-exempt employer to a cap-subject employer must go through the lottery. The Modernization Rule relaxed the affiliation standard from "primary mission" to "fundamental activity," expanding eligibility for certain nonprofit entities.

H-1B Modernization Rule: What Changed for Employers

The H-1B Modernization Rule, effective January 17, 2025, introduced the most significant regulatory overhaul in years.

Specialty occupation definition clarified: The word "normally" requiring a degree does not mean "always," and USCIS now accepts multiple qualifying degree fields if each has a direct, logical connection to the job duties. This helps employers in roles that draw from multiple disciplines (for example, data science positions requiring computer science, statistics, or mathematics degrees).

Deference to prior approvals codified: Adjudicators must now defer to a prior petition approval involving the same parties and the same role, absent material change, error, or new adverse information. This codification reversed a 2017 policy rescission and provides significantly more predictability for H-1B extensions and renewals.

Entrepreneur eligibility expanded: Individuals with a controlling ownership interest (over 50%) in the petitioning company can now have that company sponsor their H-1B, though initial petitions and first extensions are limited to 18-month validity periods instead of the standard 3 years.

Site visit authority formalized: USCIS codified the authority to conduct unannounced inspections at employer worksites, third-party locations, and employees' homes for remote workers. Refusal to comply with a site visit can result in denial or revocation of the petition.

Other notable changes: F-1 cap-gap protections were extended through April 1 for students transitioning to H-1B status; itinerary requirements for off-site placements were eliminated; and the beneficiary-centric selection process was formally codified in the regulations.

Employer Compliance Obligations

Sponsoring an H-1B worker creates ongoing obligations that extend well beyond the initial petition approval. The Department of Labor and USCIS both enforce compliance, and violations can result in fines, debarment, and criminal penalties.

Wage compliance is the foundation. Employers must pay the higher of the actual wage paid to similarly situated workers or the prevailing wage for the occupation and geographic area, and must maintain this standard throughout the employment period. Required wages cannot be reduced through deductions for immigration costs, training fees, or other expenses that effectively bring compensation below the required level.

Public Access File (PAF) requirements apply to every H-1B employer. The PAF must be created within one business day of filing the LCA and must contain the certified LCA, prevailing wage documentation, actual wage data, worksite posting compliance records, and a summary of benefits offered. This file must be available to any member of the public within one business day of a request and retained for at least one year after the end of H-1B employment or the expiration of the LCA period (per the applicable scenario under 20 CFR § 655.760(c)).

H-1B-dependent employer rules impose additional requirements on companies that exceed specific thresholds under INA § 212(n)(3) and 20 CFR § 655.736: 8 or more H-1B workers among 25 or fewer full-time equivalents, 13 or more among 26 to 50 FTE, or 15% or more among 51 or more FTE. These employers must make non-displacement attestations (certifying no U.S. worker was displaced 90 days before or after the filing) and demonstrate good-faith recruitment of U.S. workers. These additional obligations do not apply to "exempt" H-1B workers earning at least $60,000 annually or holding a master's degree or higher in a related field.

Material changes require amended petitions. If job duties, work location, or employment terms change significantly after approval, the employer must file an amended H-1B petition before the changes take effect. Common triggers include office relocations, shifts to remote work, promotions involving substantially different duties, and changes to the beneficiary's compensation structure.

RFE Triggers and How to Avoid Them

Requests for Evidence add months to the processing timeline and create uncertainty for both employers and employees. Understanding what triggers RFEs helps employers build stronger initial petitions.

• The most common RFE triggers include specialty occupation challenges, where USCIS questions whether the position genuinely requires a bachelor's degree in a specific field (entry-level positions at Wage Level I face particular scrutiny); beneficiary qualification issues, where the degree field does not match the job duties or foreign degree evaluations lack sufficient detail; employer-employee relationship questions, especially common for staffing companies and third-party placements; LCA and wage/duty mismatches, where discrepancies exist between the LCA and the I-129; and maintenance-of-status gaps, where periods of invalid immigration status lack explanation.

Strong petitions vs. weak petitions

• Strong petitions feature a detailed employer support letter with specific technical duties, degree requirements supported by multiple forms of evidence (industry standards, expert opinions, prior USCIS approvals), a wage level consistent with the complexity of duties described, clean maintenance-of-status history, and robust documentation of the employer-employee relationship with organizational charts and supervision details.

• Weak petitions feature generic job descriptions that could apply to non-specialty roles, vague connections between the required degree field and job duties, Wage Level I for positions described with senior-level responsibilities, gaps in status documentation without explanation, and thin employer-employee evidence for third-party placements.

Employers have 84 calendar days (plus 3 days for mailing) to respond to an RFE, per 8 CFR 103.2(b)(8). After receiving the response, USCIS restarts the premium processing clock (15 business days) or continues standard processing. Alma's experienced H-1B attorneys build petitions with preemptive evidence addressing common RFE areas, which can reduce the cost and delay of a mid-process evidence request.

Looking Ahead: FY2027 Wage-Weighted Lottery

DHS published a final rule on December 29, 2025 (effective February 27, 2026) replacing the random lottery with a wage-weighted selection system for FY2027 onward. Under this system, each registration is assigned lottery entries based on the OEWS prevailing wage level: Level IV receives 4 entries, Level III receives 3, Level II receives 2, and Level I receives 1. Employers offering higher wages relative to the occupation and geographic area will have meaningfully better odds of selection. DHS projects this shift will redirect approximately $502 million in first-year wages toward higher-paid positions.

The FY2027 registration window opens March 4, 2026 at noon Eastern and closes March 19, 2026 at noon Eastern. Carefully evaluating SOC codes and wage levels before registration is essential, as the wage level directly affects selection probability. 

Alma's H-1B Filing Services

Read more about Alma's H-1B visa services for individuals and business immigration solutions for employers.

Traditional law firms often charge $5,000 to $10,000+ per H-1B petition with hourly billing that makes final costs unpredictable. Alma's technology-enabled immigration platform pairs experienced attorneys with a digital workflow that gives employers and employees more control, visibility, and speed.

• Flat-fee, transparent pricing: Alma charges $500 for lottery registration and $3,500 for H-1B cap filing. No hourly billing. RFE responses are included in the base fee, unlike traditional firms that charge extra.

• Attorney-led, technology-enabled: Every case is handled by an experienced immigration attorney. Alma's platform automates document organization, deadline tracking, and form population, allowing attorneys to focus on legal strategy rather than administrative tasks.

• Built for employers filing at scale: For companies sponsoring multiple H-1B workers, Alma's platform manages the full portfolio: bulk registration, centralized case tracking, compliance reminders, and coordinated filing timelines. Direct attorney communication and 24/7 portal visibility keep HR teams and employees informed without constant email follow-up.

• End-to-end support: From pre-registration planning through petition approval, Alma handles LCA filing, evidence organization, I-129 preparation, and any RFE responses. For employees who are interested in alternative visa pathways (such as O-1A for extraordinary ability or EB-2 NIW for national interest waiver), Alma attorneys can evaluate eligibility during the H-1B process.

Learn more about Alma to discuss H-1B cap season strategy with an experienced attorney.

Frequently Asked Questions

How does the beneficiary-centric lottery affect employers registering the same candidate?

Under the beneficiary-centric system, each unique beneficiary receives only one entry in the lottery regardless of how many employers register them. If a beneficiary is selected, all employers who submitted registrations for that individual are notified and may file petitions. Registering a candidate through multiple related entities does not increase selection odds. The system effectively rewards legitimate employer demand while eliminating the advantage previously gained by submitting mass duplicate registrations.

What happens if an employee is not selected in the H-1B lottery?

If a beneficiary is not selected, the employer cannot file an H-1B cap-subject petition for that fiscal year. Options include re-registering in the next fiscal year's lottery, exploring cap-exempt employment at qualifying universities or research organizations, pursuing alternative visa categories such as O-1A (extraordinary ability), L-1 (intracompany transfer), or TN (for Canadian and Mexican nationals), or considering employer-sponsored green card pathways. For employees currently in F-1 OPT status, STEM OPT extensions may provide additional time while awaiting the next lottery cycle.

Can the employer pass H-1B filing costs to the employee?

The ACWIA training fee, Fraud Prevention fee, and Asylum Program fee must be paid by the employer and cannot be shifted to the employee under any circumstances. The base I-129 filing fee and premium processing fee may potentially be shared, but only if doing so does not reduce the employee's compensation below the required wage level. The registration fee is also the employer's responsibility. In practice, most employers cover the full cost of H-1B filing, as deductions from employee wages risk wage compliance violations that can trigger DOL investigations.

How does the H-1B Modernization Rule affect petition renewals and extensions?

The Modernization Rule codified a deference policy requiring USCIS adjudicators to defer to a prior petition approval involving the same employer, beneficiary, and role, absent material change, error, or new adverse information. This means H-1B extensions are expected to receive more consistent treatment, and employers are less likely to face unexpected RFEs or denials when renewing previously approved petitions for the same position. This codification reversed a 2017 policy rescission that had created significant unpredictability in the extension process.

What can employers do to prepare for the FY2027 wage-weighted lottery?

The new wage-weighted selection system takes effect for FY2027 (registration opens March 4, 2026). Employers may wish to review the wage levels assigned to their open positions, ensure SOC codes accurately reflect job duties and qualifications, and evaluate whether compensation adjustments are warranted. Positions at Wage Level III and IV will receive 3x and 4x the lottery entries of Level I positions, respectively. Companies may also consider auditing existing job descriptions to ensure they support the wage levels being claimed, as USCIS scrutiny of wage-level accuracy is expected to increase. Alma's immigration attorneys can help employers develop a registration strategy aligned with the new weighted system. Additionally, employers sponsoring beneficiaries who will require consular processing should account for the $100,000 supplemental fee under Presidential Proclamation 10973, which remains in effect through September 21, 2026.