The H-1B visa allows U.S. employers to temporarily hire foreign workers in specialty occupations requiring at least a bachelor's degree (or equivalent) in a directly related specific specialty. Each fiscal year, Congress limits the number of new cap-subject H-1B visas to 85,000: 65,000 under the regular cap and 20,000 under the U.S. advanced degree exemption. This guide covers every critical deadline, fee, and compliance requirement for the FY2026 H-1B cap season, including the registration process, lottery results, petition filing, and major policy changes that reshaped this cycle.
H-1B cap season spans months of preparation, a narrow registration window, a lottery, and a filing period with strict deadlines. Missing any step can cost a company an entire year. The complete cycle from pre-registration setup through the earliest possible employment start date runs roughly eight months, with preparation ideally beginning well before registration opens.
Before the registration window opens, employers complete several foundational steps. Delays in this phase are one of the most common reasons companies miss the registration period entirely.
Typical pre-registration steps include:
Common pre-registration issues:
The FY2026 registration period opened at noon Eastern on March 7, 2025, and closed at noon Eastern on March 24, 2025, per USCIS. This was a 17-day window with no extensions.
During registration, employers submitted basic information for each beneficiary: name, date of birth, passport details, country of birth, and whether the beneficiary qualifies for the U.S. advanced degree exemption. No supporting documents, job offer letters, or LCA certifications were required at this stage.
How the beneficiary-centric lottery works:
FY2026 was the second year of the beneficiary-centric selection process. Under the previous employer-centric system, a beneficiary registered by five different employers had five separate lottery entries. The new system counts each unique beneficiary only once, regardless of how many employers register them. If selected, every employer who registered that beneficiary receives a selection notification and may file a petition.
According to USCIS, FY2026 results were as follows:
The dramatic reduction in duplicate registrations (only 7,828 in FY2026, down from 408,891 in FY2024) confirmed the anti-fraud effectiveness of beneficiary-centric selection. USCIS completed the initial selection by March 31, 2025, and notified all registrants through their myUSCIS accounts.
USCIS announced on July 18, 2025, that the FY2026 H-1B cap was reached without a second lottery, the first time in several years. The improved selection accuracy from beneficiary-centric processing and anti-fraud measures contributed to this outcome.
The cap numbers:
Registrations indicating the beneficiary holds a qualifying U.S. advanced degree first enter the 20,000 master's cap pool. Those not selected there roll into the 65,000 regular cap pool for a second chance.
Selected registrants had a 90-day window from April 1 through June 30, 2025 to file complete H-1B petitions with USCIS. USCIS extended the deadline to 7:30 PM EDT on July 1, 2025, for online filings due to a technical issue affecting the system on June 30.
Required petition components:
Complete fee breakdown for FY2026 cap petitions:
Base filing fee (Form I-129): $780 for employers with 26 or more full-time employees; $460 for small employers with 25 or fewer, per USCIS fee schedules.
ACWIA Training Fee (American Competitiveness and Workforce Improvement Act): $1,500 for employers with 26+ full-time employees; $750 for employers with 25 or fewer. The following categories are exempt from this fee: institutions of higher education, nonprofit entities related to or affiliated with institutions of higher education, nonprofit research organizations, governmental research organizations, primary or secondary educational institutions, and nonprofit entities that engage in established curriculum-related clinical training of students.
Fraud Prevention and Detection Fee: $500, applicable to all initial H-1B petitions and change-of-employer filings. Not required for extensions with the same employer.
Asylum Program Fee: $600 for large employers (26+ employees); $300 for small employers (25 or fewer). Exempt for nonprofits.
Public Law 114-113 Fee: $4,000, applicable only to employers with 50+ U.S. employees where more than 50% are in H-1B or L-1 status.
Premium Processing (optional): $2,805 via Form I-907, guaranteeing an adjudicative action within 15 business days. Note: Effective March 1, 2026, the premium processing fee increased to $2,965 per a CPI-U inflation adjustment published in the Federal Register (91 FR 1059).
Total estimated government fees for a large employer (26+ FTEs) are approximately $3,380 without premium processing and $6,185 with the pre-March 2026 premium processing fee (or $6,345 using the current $2,965 premium processing fee). The $4,000 PL 114-113 fee applies where applicable. These figures do not include the $215 registration fee or attorney fees.
Why delays happen at this stage:
Note: LCA preparation can begin immediately after receiving a selection notification. The LCA can be filed up to six months before the intended start date but cannot be filed after the petition itself.
The LCA creates binding legal obligations that last for the duration of H-1B employment. Employers file the LCA electronically through the DOL FLAG system before submitting the I-129 petition to USCIS.
Employers are required to pay the H-1B worker at least the higher of the actual wage (what the employer pays similarly situated workers) or the prevailing wage for the occupation in the area of intended employment. The Department of Labor determines prevailing wages using Occupational Employment and Wage Statistics (OEWS) data across four levels, per the National Prevailing Wage Center: Level I (entry, approximately the 17th percentile), Level II (qualified, approximately the 34th percentile), Level III (experienced, approximately the 50th percentile), and Level IV (fully competent, approximately the 67th percentile).
Employers can request a formal Prevailing Wage Determination (PWD) from DOL using Form ETA-9141. While not required (employers may use other legitimate sources), a PWD provides "safe harbor" protection. As of 2025, PWD processing times for OEWS-based H-1B requests ranged from approximately 4 to 5 months, while non-OEWS requests took longer.
Within one day of filing the LCA, employers are required to provide notice to workers at the intended worksite. This means posting the LCA (or a summary) for 10 consecutive days in two conspicuous locations where workers can see it, or providing equivalent electronic notice on an internal website or intranet. (Note: The 10-day posting period for LCA notices is measured in calendar days under 20 CFR §655.734, in contrast to certain PERM posting requirements that use business days.)
Employers are also required to create and maintain a public access file (PAF) within one working day of filing the LCA with DOL. The PAF includes the certified LCA, the actual wage rate paid, a description of the wage system, prevailing wage documentation, notice documentation, and a summary of benefits. Once established, the PAF is available for public inspection at the employer's principal place of business or at the worksite. It is retained for one year after the last date any H-1B worker is employed under that LCA (or, if no worker was ever employed under the LCA, one year from its expiration or withdrawal date), per DOL regulations. Payroll records have a separate three-year retention requirement.
H-1B sponsorship creates continuing compliance duties that extend beyond filing:
Penalties for LCA violations are subject to annual inflation adjustments under the Federal Civil Penalties Inflation Adjustment Act. As of the most recent adjustment (effective January 16, 2025), standard violations carry penalties up to $2,364 per violation, while willful violations involving displacement of U.S. workers carry penalties up to approximately $63,600 per violation, plus potential debarment from the program. The original statutory amounts ($1,000 and $35,000, respectively) have been substantially increased through cumulative inflation adjustments.
Staying compliant with H-1B obligations is complex, especially for employers managing multiple sponsored workers across different worksites. Alma's immigration platform helps employers track LCA deadlines, maintain public access files, and stay ahead of amendment triggers. Alma's experienced attorneys handle every step, from registration through approval. Get started today.
Premium processing is available for FY2026 cap petitions either at the time of filing or as an upgrade to a pending case. By submitting Form I-907 with the applicable fee ($2,805 for petitions filed before March 1, 2026; $2,965 for petitions filed on or after March 1, 2026), USCIS guarantees an adjudicative action within 15 business days. That action can be an approval, denial, Request for Evidence (RFE), or Notice of Intent to Deny (NOID).
The H-1B Modernization Rule (89 FR 103054) was the most significant H-1B regulatory update in years, affecting both cap season and ongoing H-1B operations. Key provisions relevant to employers:
As of March 2026, the H-1B Modernization Rule remains in full force with no court challenges or administrative rescission.
The increase from $10 to $215 per registration likely contributed to the significant decline in total registrations, from approximately 470,000 eligible registrations in FY2025 to 344,000 in FY2026. The higher fee created a financial barrier to speculative filings, complementing the anti-fraud effects of beneficiary-centric selection.
A final rule published December 29, 2025 (90 FR 60864), by DHS replaces the random lottery with a wage-weighted selection system starting with the FY2027 cap season. Under this system, registrations are assigned weighted entries based on the prevailing wage level of the offered position: 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 prevailing wage will have significantly better selection odds.
The rule took effect February 27, 2026, and is being applied to the FY2027 registration period, which USCIS officially confirmed runs from noon Eastern on March 4 to noon Eastern on March 19, 2026. As of March 2026, no court has blocked, enjoined, or stayed this rule.
This shift means employers evaluating their H-1B strategy for FY2027 may consider whether increasing salary offers or restructuring positions to qualify at higher wage levels is feasible. Positions offered at Level I wages, historically the most common, face the steepest selection disadvantage under the new system.
Read: H-1B visa statistics that shape your immigration strategy in 2026.
Not being selected in the H-1B lottery does not mean the end of the road. Employers have several alternative pathways to retain or hire foreign talent:
Cap-exempt H-1B employment: Employers at institutions of higher education, affiliated nonprofit entities, nonprofit research organizations, or government research organizations can file H-1B petitions year-round without going through the lottery, per USCIS.
O-1A visa: For individuals with extraordinary ability in their field. No annual cap, no lottery, and petitions can be filed at any time. The O-1A requires meeting 3 of 8 evidentiary criteria or demonstrating a major internationally recognized award.
L-1 intracompany transfer: For employees who have worked at a related foreign office (parent, branch, subsidiary, or affiliate) for at least one continuous year within the preceding three years. L-1A covers managers and executives; L-1B covers specialized knowledge workers.
EB-2 NIW green card: A direct path to permanent residence without employer sponsorship. Particularly valuable for employees who qualify as advanced degree professionals and whose work serves the national interest.
F-1 OPT/STEM OPT: International students on F-1 status can use Optional Practical Training (up to 12 months) or STEM OPT (additional 24 months for qualifying STEM degrees) as a bridge while re-entering the lottery in subsequent years.
Other options: TN visas for Canadian and Mexican nationals, E-2 treaty investor visas, E-3 visas for Australians, H-1B1 visas for Chileans and Singaporeans, and EB-1A extraordinary ability green cards.
Read success stories from Alma's clients across tech, healthcare, finance, and more.
H-1B cap season demands precision at every step. A missed registration deadline costs a full year. A poorly prepared petition invites RFEs that delay start dates and disrupt business planning. Alma's attorney-led platform handles every phase of the H-1B process for employers.
End-to-end management: From organizational account setup and registration through petition preparation, filing, and approval. Alma attorneys handle LCA filings, Form I-129 preparation, and evidence compilation.
Experienced legal counsel: Every case is managed by an experienced immigration attorney with deep knowledge of current USCIS adjudication standards and the H-1B Modernization Rule's impact on specialty occupation analysis.
Technology platform: Alma's secure portal provides real-time case tracking, deadline alerts, document organization, and direct attorney communication.
Compliance support: Alma helps employers maintain public access files, track amendment triggers for worksite changes, and stay ahead of wage obligation requirements.
Multi-visa strategy: If an employee is not selected in the lottery, Alma attorneys can evaluate alternative pathways including O-1 visas, EB-2 NIW, and other options.
Schedule a consultation to discuss your H-1B sponsorship needs with an experienced attorney.
Total government fees for a large employer (26+ FTEs) filing an initial FY2026 cap petition are approximately $3,380 (base filing fee of $780, ACWIA fee of $1,500, fraud prevention fee of $500, and asylum program fee of $600), per USCIS fee schedules. Small employers (25 or fewer FTEs) pay approximately $2,010. The $215 registration fee (paid during registration) and premium processing ($2,805 before March 1, 2026, or $2,965 on or after March 1, 2026) are additional. Employers with 50+ employees where more than 50% hold H-1B or L-1 status are also subject to the $4,000 Public Law 114-113 fee. Attorney fees are additional. Certain fees, including the ACWIA Training Fee and the Fraud Prevention and Detection Fee, are legally prohibited from being passed to the H-1B beneficiary. Other petition-related costs generally cannot reduce the worker's pay below the required wage.
An RFE means USCIS needs additional evidence before making a decision. The response deadline is specified on the individual RFE notice; 60-day deadlines are common, with a regulatory maximum of 87 days (84 days plus 3 days for mail service under 8 CFR 103.5(b)). Common RFE topics include specialty occupation analysis (whether the position truly requires a degree in a specific field), beneficiary qualifications (whether the worker's degree matches the job), and employer-employee relationship. Responses addressing every issue raised in the RFE with supporting evidence (not just explanations) tend to be most effective. If the petition was filed with premium processing, the 15-business-day clock stops when the RFE is issued and a new 15-business-day period begins upon receipt of the response, per USCIS premium processing rules.
A cap-subject H-1B petition cannot be filed outside the designated filing period. However, cap-exempt employers (institutions of higher education, affiliated nonprofits, nonprofit research organizations, and government research organizations) can file at any time without going through the lottery, per USCIS. Employers can also explore H-1B transfers from other employers who already hold approved cap-subject petitions, or consider alternative visa categories such as O-1, L-1, or TN visas depending on the worker's qualifications and nationality. Planning for FY2027 registration (March 4 to 19, 2026) is already underway.
Starting with the FY2027 cap season, DHS replaced the random lottery with a wage-weighted selection system under a final rule (90 FR 60864) that took effect February 27, 2026. Each registration is assigned entries based on the offered wage's corresponding prevailing wage level: Level IV (highest) gets 4 entries, Level III gets 3, Level II gets 2, and Level I gets 1 entry. This means positions with higher wages relative to the prevailing wage for that occupation and location have significantly better odds of selection. The FY2027 registration period runs from noon Eastern on March 4 to noon Eastern on March 19, 2026, as confirmed by USCIS. As of March 2026, no court has blocked or stayed this rule.
H-1B status is initially granted for up to three years and can be extended for an additional three years, for a maximum of six years. Extensions are not subject to the cap. If the employee has an approved I-140 immigrant petition, they may qualify for three-year extensions beyond the six-year limit under section 104(c) of the American Competitiveness in the Twenty-First Century Act (AC21). If a PERM labor certification application or I-140 petition has been pending for at least 365 days, the employee may qualify for one-year extensions under AC21 section 106(a). Alternatively, employers can explore a green card pathway through EB-2 PERM, EB-2 NIW, or EB-1 categories. Schedule a consultation with Alma.
