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.
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.
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).
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.
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.
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.
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
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.
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).
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.
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).
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.
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.
H-1B petition costs vary significantly based on employer size. Below is the full breakdown for a new cap-subject petition filed in FY2026.
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.
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.
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.
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.
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.
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.
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.
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.
Learn more about Alma to discuss H-1B cap season strategy with an experienced attorney.
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.
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.
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.
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.
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.
