H-1B FY 2027 Update: Second Lottery Possibility and Wage Rule Changes Ahead

Following the initial FY 2027 H-1B cap selection, early indicators suggest a strong likelihood of a second lottery round later this summer. While U.S. Citizenship and Immigration Services (USCIS) previously projected higher selection rates based on its new wage-level weighted system, anecdotal data indicates that actual outcomes may differ—potentially resulting in more unused selections. Whether a second round occurs will depend largely on how many employers proceed with filing complete petitions by the June 30 deadline. Factors such as increased registration fees, evolving litigation over the $100,000 H-1B fee, and challenges in meeting stated wage levels may cause some employers to withdraw. At the same time, proposed changes to prevailing wage calculations could significantly increase wage requirements across Levels I–IV, further impacting employer strategy. Employers should closely monitor developments and be prepared to act quickly if additional selection opportunities arise.

DOL Proposes Major Overhaul to Prevailing Wage Calculations for H-1B and PERM Programs

On March 27, 2026, the U.S. Department of Labor (DOL) published a proposed rule in the Federal Register that would significantly revise how prevailing wages are calculated for H-1B, H-1B1, E-3, and PERM labor certification programs. The proposal aims to align wages paid to foreign workers more closely with those earned by similarly situated U.S. workers by incorporating updated, statistically driven wage percentiles from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics (OEWS) data. According to the DOL, the current system has allowed for wages that fall below true market rates, particularly in entry-level roles. If implemented, the rule would raise wage floors across many occupations, directly impacting employer hiring strategies, labor costs, and long-term workforce planning. Employers and stakeholders have 60 days from publication—until approximately May 26, 2026—to submit public comments.

Employer Impact / What Employers Should Know:

• Higher Wage Obligations Likely:
• Employers should anticipate increased prevailing wage levels, particularly for entry-level and mid-level roles, which may significantly raise the cost of sponsoring foreign workers.
• Impact on H-1B and PERM Strategy:
• The proposed changes could affect the viability of certain roles for sponsorship, especially in industries that rely on current Level 1 or Level 2 wage structures.
• Budgeting and Workforce Planning:
• Employers should begin reviewing compensation structures now in anticipation of potential increases if the rule is finalized.
• Recruitment and PERM Compliance:
• Higher prevailing wages will impact PERM recruitment requirements, including wage postings and offered salaries.
• Increased Scrutiny on Wage Practices:
• The proposal signals continued federal focus on wage parity and enforcement.
• Rule Not Yet Final:
• This is a proposed rule only—implementation timing will depend on the final rule and effective date, which has not yet been announced.

USCIS Updates Form I-129: Wage Levels Take Center Stage in H-1B Filings

U.S. Citizenship and Immigration Services (USCIS) has introduced a revised Form I-129 that significantly increases scrutiny on H-1B wage levels and job requirements, aligning with the new wage-weighted selection process for the FY 2027 cap season. Employers must now provide detailed information on position qualifications—including education, field of study, experience, and supervisory duties—to justify the wage level selected and ensure consistency across the H-1B registration, Labor Condition Application (LCA), and petition filings. As wage levels now influence lottery selection outcomes, inconsistencies may lead to heightened review, Requests for Evidence, or denials—making early planning and precise documentation more critical than ever.

What Employers Should Do:

• Evaluate wage level selection carefully to ensure it is justified by the role’s duties, experience requirements, and level of responsibility.
• Align all filings across the H-1B registration, Labor Condition Application (LCA), and Form I-129 to avoid inconsistencies.
• Review job descriptions in detail to confirm they accurately reflect the position and support the selected wage level.
• Work with immigration counsel early to assess classification, prevailing wage data, and overall filing strategy.
• Prepare for increased scrutiny by anticipating Requests for Evidence (RFEs) related to wage level and job qualifications.
• Maintain strong supporting documentation including organizational charts, job postings, and internal compensation structures.
• Plan ahead for future H-1B cycles as wage levels may continue to play a larger role in selection and adjudication.

USCIS Reaches H-2B Cap for Second Half of FY 2026—Supplemental Visa Filing Windows Announced

U.S. Citizenship and Immigration Services (USCIS) has confirmed that it has received enough petitions to meet the H-2B cap for the second half of fiscal year 2026. March 10, 2026 marked the final receipt date for cap-subject petitions requesting employment start dates between April 1 and September 30, 2026, and any filings received after that date will be rejected. For employers still seeking seasonal or temporary workers, USCIS has released filing dates for the second and third allocations of supplemental H-2B visas, providing limited additional opportunities to secure workforce needs. Employers should act quickly and coordinate with counsel to assess eligibility and prepare filings as soon as these supplemental windows open, as demand is expected to remain high.

Temporary Increase in H-2B Nonimmigrant Visas for FY 2026

TPS for Syria: Court-Ordered Extension and Updated I-9 Compliance Guidance

Recent federal guidance issued on March 24, 2026 supersedes prior updates regarding the termination of Temporary Protected Status (TPS) for Syria. Although the Department of Homeland Security determined that Syria no longer meets the conditions for TPS—previously set to terminate on November 21, 2025—a federal court order in Dahlia Doe v. Noem (S.D.N.Y.) remains in place, temporarily staying that termination. As a result, Employment Authorization Documents (EADs) issued under Syria’s TPS designation with expiration dates of March 31, 2021; September 30, 2022; March 31, 2024; and September 30, 2025 continue to be valid pursuant to the court order.

For Form I-9 compliance, employers must enter “as per court order” in Section 1 and use July 1, 2026 as the expiration date in Section 2, along with appropriate annotations in the Additional Information field. For E-Verify purposes, employers should also use July 1, 2026 as the expiration date. Employers may retain copies of the USCIS alert and TPS Syria webpage with the Form I-9 to document compliance. Given the evolving nature of this matter, employers are strongly encouraged to regularly monitor USCIS updates and ensure proper documentation is maintained in their I-9 records.

TPS for Burma: Updated I-9 Compliance Guidance

Updated guidance issued March 27, 2026 confirms that while DHS terminated TPS for Burma effective January 26, 2026, a federal court order in Aung DOE et al. v. Noem et al. (N.D. Ill.) has temporarily postponed that termination. As a result, EADs with expiration dates of November 25, 2022; May 25, 2024; and November 25, 2025 remain valid.

For Form I-9, employers should enter “as per court order” in Section 1 and use April 15, 2026 as the expiration date in Section 2. The same date should be used for E-Verify. Employers should continue monitoring USCIS for updates and retain supporting documentation with I-9 records.

TPS Termination for Yemen: Employer Compliance Considerations

The Department of Homeland Security has announced the termination of Temporary Protected Status (TPS) for Yemen, effective May 4, 2026, following a determination by Secretary Kristi Noem that the country no longer meets the statutory requirements for designation. For employers, this development carries important Form I-9 compliance implications. Work authorization documents issued under Yemen’s TPS designation will no longer be valid after the termination date. Employers should proactively review their workforce to identify any employees relying on Yemen TPS-based employment authorization, track expiration dates, and ensure timely reverification where required. As always, reverification must be conducted in a nondiscriminatory manner and in compliance with federal law. Our team is available to assist with internal audits and guidance to mitigate risk.

Immigration Compliance Reminders in a Rapidly Changing Enforcement Landscape

What Employers Need to Know

Immigration policy and enforcement priorities are evolving at an unprecedented pace. Increased worksite enforcement, heightened scrutiny of employment eligibility practices, and shifting regulatory interpretations mean that immigration compliance is no longer a static obligation—it is an ongoing operational risk management issue.

For employers, particularly those with large or diverse workforces, proactive compliance is essential to avoiding audits, fines, operational disruptions, and reputational harm.

Key Compliance Priorities for Employers

1. I-9 Accuracy and Internal Audits

Ensure all Form I-9s are properly completed, stored, and retained. Regular internal audits—conducted under legal counsel—help identify and correct issues before a government inspection occurs.

2. Preparedness for ICE and DHS Audits

Employers should have a clear, written response protocol for Notices of Inspection, subpoenas, and unannounced enforcement activity. Knowing who to contact and what to provide can significantly reduce risk and liability exposure.

3. Consistent Hiring and Reverification Practices

Policies must be applied uniformly to avoid discrimination claims while still meeting verification and reverification requirements under federal law.

4. Monitoring Policy and Enforcement Changes

Shifts in executive action, agency guidance, and enforcement priorities can materially impact compliance obligations. Employers should stay informed and adjust policies accordingly.

5. Training for HR and Management Teams

Front-line personnel play a critical role in compliance. Regular training ensures proper document handling, lawful verification procedures, and appropriate responses to government inquiries.

Develop a Proactive Immigration Compliance Strategy

Monty & Ramirez LLP works with employers to design proactive immigration compliance strategy plans and comprehensive Immigration Compliance Toolkits. For a confidential consultation regarding your organization’s immigration compliance readiness, contact our office at 281-493-5529 or email info@montyramirezlaw.com.

April 2026 Visa Bulletin

A. Dates for Filing for Employment-Based Visa Applications

For April 2026, USCIS announced it will use the Dates for Filing chart published by the Department of State.