Overview

• DHS published a Sept. 24 proposed rule to replace the random H‑1B cap lottery with an OEWS wage‑weighted selection that gives Level IV four entries, Level III three, Level II two, and Level I one, without changing how DOL sets prevailing wages.
• Employers would have to report the SOC code, area of intended employment, and the highest OEWS wage level met, plus the beneficiary’s passport details, and USCIS would assign multiple registrations for the same person to the lowest reported wage level.
• USCIS would only accept petitions that exactly match the selected registration and corresponding LCA on SOC, wage level, and location, allowing only limited updates such as name or passport changes.
• USCIS projects roughly 10,000 fewer approvals for entry‑level (Level I) roles each year, with increases of about 2,400 for Level II, 4,500 for Level III, and 3,200 for Level IV positions.
• Legal challenges are anticipated given a similar rule was vacated by a federal court in 2021, and DOL separately launched a Sept. 19 enforcement initiative, Project Firewall, to intensify H‑1B employer compliance investigations.