Understanding the New H-1B Lottery Rules: What Employers and Applicants Need to Know
The H-1B visa process continues to evolve, leaving many employers and foreign professionals uncertain about how upcoming changes may impact their immigration strategies. In recent years, increased scrutiny and new regulations have reshaped how the H-1B lottery is managed. One of the most significant developments is the introduction of the electronic pre-registration system, which has changed the way employers and applicants approach the annual H-1B cap season.
At Green Card Link, its immigration attorneys closely monitor policy updates to ensure that employers and employees receive clear guidance in navigating this complex process.
How the H-1B Visa Traditionally Worked
The H-1B visa is a highly sought-after nonimmigrant visa that allows U.S. employers to hire foreign professionals in specialty occupations. To qualify, applicants must hold at least a bachelor’s degree and have a job offer that requires such qualifications.
Because the eligibility criteria are broad, U.S. Citizenship and Immigration Services (USCIS) receives far more petitions than the annual cap of 85,000 available visas. Of these, 65,000 are allocated under the general cap and 20,000 are reserved for applicants with advanced U.S. degrees.
In prior years, employers had only a brief “filing window” beginning on the first business day of April. During this period, they were required to submit complete H-1B petitions. USCIS would then conduct a random lottery to select petitions for processing. Those not chosen would be returned to the employer with all fees and documents. While this system worked, it placed a heavy administrative burden on USCIS, which had to process and return hundreds of thousands of filings each year.
The Shift in the H-1B Lottery Process
On January 31, 2019, the Department of Homeland Security (DHS) issued a final rule that introduced two major changes to the H-1B cap process:
- Mandatory Electronic Registration: Employers must now register their intended H-1B beneficiaries electronically with USCIS before submitting full petitions.
- Revised Selection Order: USCIS now selects registrations under the general cap first, before applying the advanced degree exemption.
This rule took effect on April 1, 2019, and marked the beginning of a modernized, streamlined system.
Electronic Registration Requirement
Under the new system, employers no longer need to submit complete petitions just to enter the lottery. Instead, they must electronically pre-register each prospective H-1B employee through USCIS.
- Registrations open a few weeks before April 1.
- USCIS conducts the lottery based on electronic registrations.
- If selected, employers will then file full petitions, including filing fees and supporting documentation, within a designated filing period.
Although the requirement was temporarily suspended for testing during the FY 2020 cap season, USCIS has since moved forward with full implementation, starting with FY 2021.
This change greatly reduces wasted effort and cost. Employers only pay petition filing fees if their registration is selected. It also alleviates the administrative backlog previously caused by returning thousands of unselected petitions.
What Employers Should Expect
Employers must now adapt to the electronic system by:
- Filing separate registrations for each potential H-1B beneficiary.
- Attesting intent to file a petition if selected.
- Understanding filing limitations, as only one registration per beneficiary per fiscal year is permitted.
USCIS has indicated it may provide additional stakeholder outreach and training to guide employers through this transition. Importantly, the designated filing window for full petitions remains at least 90 days for selected registrants.
Impact of the Revised Lottery Selection Order
The second major change to the H-1B lottery involves the order of selection. Previously, USCIS conducted the master’s cap lottery first, followed by the regular cap. Under the new rule, USCIS reverses this order, selecting from the regular cap first before applying the master’s exemption.
This adjustment is projected to increase the number of advanced-degree beneficiaries selected by approximately 16% (or about 5,340 workers) each year. While this benefits those with U.S. master’s degrees, it reduces chances for bachelor’s degree holders and professionals with foreign graduate degrees.
Industries that rely heavily on bachelor-level professionals—such as education, architecture, accounting, and certain healthcare sectors—may face new challenges as a result.
Potential Pitfalls to Consider
While the registration system offers efficiency, it also raises concerns:
- Over-registration risks: Some employers may register beneficiaries for roles that are ultimately abandoned, increasing uncertainty for others.
- Industry disadvantages: Fields that don’t typically require master’s degrees could face reduced selection rates, potentially harming businesses that depend on bachelor-level talent.
- Healthcare concerns: Foreign-trained physicians may face hurdles, despite their critical role in filling shortages across the U.S. healthcare system.
How Green Card Link Can Help
The H-1B process is complex, and the recent changes only add new layers of strategy and planning. At Green Card Link, its immigration attorneys have extensive experience guiding employers and foreign professionals through every stage of the H-1B process. From electronic registration and lottery selection to responding to Requests for Evidence (RFEs) and communicating directly with USCIS, immigration attorneys at Green Card Link provide end-to-end legal support designed to minimize risk and maximize success.
Whether you are an employer seeking to fill specialized roles or a foreign professional hoping to secure your future in the U.S., partnering with an experienced immigration attorney at Green Card Link ensures you remain fully informed and prepared for every policy update.