The United States has fundamentally changed the way it selects H-1B visa petitions, moving away from a random lottery system to one that prioritizes higher-skilled and higher-paid foreign workers. This significant policy shift, announced by the US Citizenship and Immigration Services (USCIS), directly impacts a vast number of Indian professionals who constitute the largest group of H-1B recipients annually.
End of the Random Lottery: A New Selection Process
The new rule, which came into effect on March 9, 2024, replaces the previous computer-generated random selection process. Under the old system, all eligible petitions submitted during the annual cap season entered a lottery, regardless of the offered salary or the skill level of the position. This often led to situations where petitions for entry-level positions had an equal chance of selection as those for highly specialized, senior roles.
The updated system introduces a wage-level-based selection mechanism. When USCIS receives more petitions than the annual numerical cap—currently set at 85,000 for the regular category—it will now rank and select registrations primarily based on the highest Occupational Employment Statistics (OES) prevailing wage level that the proffered wage equals or exceeds.
This means that petitions offering wages at Level IV, which represents the highest wage tier for that occupation and location, will be selected first. The selection will then proceed downwards through Level III and Level II. Only if the cap is not filled after selecting all petitions from these higher wage levels will registrations offering Level I wages be considered.
Implications for Indian Tech Professionals and Companies
This policy overhaul has profound consequences for both Indian professionals and the US companies, particularly in the technology sector, that hire them. The primary intent of the Biden administration is to attract and retain top global talent by ensuring the H-1B program is used for its original purpose: to fill specialized roles that cannot be filled by the domestic workforce.
For highly experienced Indian professionals with specialized skills in fields like artificial intelligence, cybersecurity, and advanced engineering, this change is likely beneficial. Their petitions, which typically command higher salaries corresponding to Level III or Level IV wages, now stand a significantly better chance of selection compared to the old lottery system.
Conversely, the new system presents challenges for recent graduates and those applying for entry-level positions. Petitions offering Level I wages, which are the lowest tier, will be selected last, making it considerably harder for this cohort to obtain an H-1B visa. This could force US companies to adjust their hiring strategies for junior roles and may impact the traditional career pathway for many foreign students graduating from American universities.
Indian and American IT services firms, which historically have filed a large volume of H-1B petitions for a range of experience levels, may need to recalibrate their approach. The increased focus on higher wages could raise overall labor costs and incentivize these companies to hire more locally for junior positions or further invest in automation.
A Broader Push for H-1B Program Integrity
The wage-level selection rule is part of a broader set of reforms aimed at curbing misuse and ensuring the H-1B program benefits the US economy. The Department of Homeland Security (DHS) has simultaneously finalized another key rule to strengthen integrity measures.
This related rule tightens definitions and requirements to prevent the unfair practice of companies filing multiple registrations for the same beneficiary to game the lottery system. It clarifies that related entities cannot submit multiple registrations for the same worker for the same fiscal year. Furthermore, it empowers USCIS to conduct site visits and provides clearer grounds for denying or revoking petitions where fraud is suspected or if the company's information cannot be validated.
These combined changes signal a clear direction from the US administration: the H-1B program is being reshaped to favor higher-skilled, higher-wage individuals while closing loopholes that have been exploited in the past. For the Indian diaspora, which has long been the backbone of the H-1B program, this marks a pivotal moment. The pathway to America for skilled work is becoming more competitive, rewarding advanced expertise and experience over chance, and demanding greater compliance from petitioning employers.
