Eligibility Requirements for the H-1B Lottery: A Guide for FY 2027 Annual Cap

To participate in the H-1B cap selection process, a registration must meet specific standards that are established by the Department of Homeland Security (DHS) and the U.S. Citizenship and Immigration Services (USCIS). Below, please find an overview of the structure of the annual cap as well as the eligibility requirements for the H-1B Lottery.

Structure of the H-1B Cap

The H-1B program is subject to an annual statutory numerical limit (the cap) of 85,000 new visas every fiscal year. The regular cap, which allocates 65,000 visas, is for beneficiaries with at least a bachelor’s degree or its foreign equivalent. The advanced degree exemptions, which allocate 20,000 visas, are reserved for beneficiaries who have earned a master’s degree or higher from a U.S. institution of higher education.

Eligibility Requirements

The Specialty Occupation Requirement (The Position)

It is important to note that not every professional role qualifies under the H-1B visa program. The proposed position must be a “specialty occupation.” This means that the position requires the theoretical and practical application of a body of highly specialized knowledge. The position must meet at least of the following requirements:

• A bachelor’s or higher degree (or its foreign equivalent) is the minimum entry requirement for the position.
• The degree requirement is common to the industry for parallel positions among similar organizations.
• The employer requires a degree or its equivalent for the proposed position.
• The specific duties are of specialized and complex in nature that the knowledge required is usually associated with the attainment of a bachelor’s degree or higher.

Beneficiary Qualifications (The Individual)

The foreign worker (the beneficiary) must be qualified to perform services in the specialty occupation. The individual must possess at least one of the following:

• Possess a U.S. bachelor’s degree or higher that is required by the specialty occupation.
• Hold a foreign degree that is determined by a credential evaluation service to be equivalent to a U.S. bachelor’s degree or higher.
• Hold a state license, registration, or certification that authorizes them to practice the specialty occupation in the state of intended employment.

Petitioner Requirements (The Employer)

The sponsoring U.S. employer must satisfy the following:

• The employer must have a bona fide job offer and the ability to pay the offered wage.
• The employer must obtain a certified Labor Condition Application (LCA) from the Department of Labor (DOL) attesting that they will pay the required wage.
• Pay the non-refundable fee per unique beneficiary that is required to enter the lottery.

Selection Criteria: The Weighted System

For the FY 2027 H-1B lottery, USCIS has implemented a new weighted selection process. This process is set to take effect beginning February 27, 2026. While all the above eligibility criteria must be met to enter, the probability of being selected is now determined by the offered wage level relative to the Occupational Employment and Wage Statistics (OEWS):

OEWS Wage Levels:

• Level I (Entry-level positions): 1 entry in the selection pool
• Level II (Qualified positions; greater than entry-level): 2 entries in the selection pool
• Level III (Experienced positions): 3 entries in the selection pool
• Level IV (Fully competent positions; highest level): 4 entries in the selection pool

It is important to note that this new weighted selection process will likely be challenged in court. A legal challenge to this particular feature of the H-1B lottery rule change could delay or stop implementation of this change to the H-1B lottery.  This certainly needs continuing monitoring. To get a better understanding of the new weighted system, we recommend readers visit our blog on the Pasricha & Patel, LLC website.

Documentation Required for Registration

To establish eligibility during the initial registration window, the following information is required:

• Employer’s name, employer identification number (FEIN), and address.
• Employer’s representative contact details.
• Employer’s attorney information.
• Foreign worker’s full name, date of birth, country of birth, country of citizenship, gender, and passport number.
• Whether the foreign worker has a master’s degree from a U.S. higher education institution.
• Foreign worker’s wage level information (wage level I, II, III, or IV).

The H-1B program has evolved over the past few years, and understanding the eligibility requirements is the foundation for a successful outcome. For the FY 2027 cycle, the intersection of all requirements will determine not only if a registration is eligible but also its probability of selection. We will continue to monitor updates on the H-1B program and update our website regularly. Should you need help with filing an H-1B petition or any matter related to immigration law, we recommend contacting the immigration department at Pasricha & Patel, LLC to schedule a consultation.