Proposed Rule2025-18473

Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
September 24, 2025

Issuing agencies

Homeland Security Department

Abstract

The U.S. Department of Homeland Security (DHS) proposes to amend its regulations governing the process by which U.S. Citizenship and Immigration Services (USCIS) selects H-1B registrations for unique beneficiaries for filing of H-1B cap-subject petitions (or H-1B petitions for any year in which the registration requirement is suspended). DHS proposes to implement a weighted selection process that would generally favor the allocation of H-1B visas to higher skilled and higher paid aliens, while maintaining the opportunity for employers to secure H-1B workers at all wage levels, to better serve the Congressional intent for the H-1B program.

Full Text

<html>
<head>
<title>Federal Register, Volume 90 Issue 183 (Wednesday, September 24, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 183 (Wednesday, September 24, 2025)]
[Proposed Rules]
[Pages 45986-46021]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18473]



[[Page 45985]]

Vol. 90

Wednesday,

No. 183

September 24, 2025

Part II





 Department of Homeland Security





-----------------------------------------------------------------------





8 CFR Part 214





Weighted Selection Process for Registrants and Petitioners Seeking To 
File Cap-Subject H-1B Petitions; Proposed Rule

Federal Register / Vol. 90, No. 183 / Wednesday, September 24, 2025 / 
Proposed Rules

[[Page 45986]]


-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

8 CFR Part 214

[CIS No. 2820-25; DHS Docket No. USCIS-2025-0040]
RIN 1615-AD01


Weighted Selection Process for Registrants and Petitioners 
Seeking To File Cap-Subject H-1B Petitions

AGENCY: U.S. Citizenship and Immigration Services, DHS.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Homeland Security (DHS) proposes to 
amend its regulations governing the process by which U.S. Citizenship 
and Immigration Services (USCIS) selects H-1B registrations for unique 
beneficiaries for filing of H-1B cap-subject petitions (or H-1B 
petitions for any year in which the registration requirement is 
suspended). DHS proposes to implement a weighted selection process that 
would generally favor the allocation of H-1B visas to higher skilled 
and higher paid aliens, while maintaining the opportunity for employers 
to secure H-1B workers at all wage levels, to better serve the 
Congressional intent for the H-1B program.

DATES: Written comments on the notice of proposed rulemaking (NPRM) 
must be submitted on or before October 24, 2025. Written comments on 
the associated information collections 1615-0144 and 1615-0009 must be 
submitted on or before November 24, 2025. The electronic Federal Docket 
Management System will accept comments before midnight Eastern time at 
the end of that day.

ADDRESSES: You may submit comments on the entirety of this proposed 
rulemaking package, identified by DHS Docket No. USCIS-2025-0040 
through the Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. In 
accordance with 5 U.S.C. 553(b)(4), the summary of this rule found 
above may also be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Follow the 
website instructions for submitting comments.
    Comments submitted in a manner other than via <a href="https://www.regulations.gov">https://www.regulations.gov</a>, including emails or letters sent to DHS or USCIS 
officials, will not be considered comments on the proposed rule and may 
not receive a response from DHS. Please note that DHS and USCIS cannot 
accept any comments that are hand-delivered or couriered. In addition, 
DHS and USCIS cannot accept comments contained on any form of digital 
media storage devices, such as CDs/DVDs and USB drives. USCIS is also 
not accepting mailed comments at this time. If you cannot submit your 
comment by using <a href="https://www.regulations.gov">https://www.regulations.gov</a>, please contact the 
Regulatory Coordination Division, Office of Policy and Strategy, U.S. 
Citizenship and Immigration Services, U.S. Department of Homeland 
Security, by telephone at (240) 721-3000 for alternate instructions.

FOR FURTHER INFORMATION CONTACT: Business and Foreign Workers Division, 
Office of Policy and Strategy, U.S. Citizenship and Immigration 
Services, U.S. Department of Homeland Security, 5900 Capital Gateway 
Drive, Camp Springs, MD 20746; telephone (240) 721-3000 (not a toll-
free call).

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Public Participation
II. Background
    A. Purpose and Summary of the Proposed Regulatory Action
    B. Legal Authority
    C. The H-1B Visa Program's Numerical Cap and Exemptions
    D. Wage Requirement
    E. Need for Reform and Rationale for Proposed Rule
    F. Current Selection Process
III. Discussion of Proposed Rule
    A. Required Information on the Registration and the Petition
    B. Process for Weighting and Selecting Registrations
    C. Process for Selecting Petitions in the Event of Suspended 
Registration
    D. H-1B Cap-Subject Petition Filing Following Registration
    E. Process Integrity
    F. Severability
IV. Statutory and Regulatory Requirements
    A. Executive Orders 12866 (Regulatory Planning and Review), 
13563 (Improving Regulation and Regulatory Review), and 14192 
(Unleashing Prosperity Through Deregulation)
    B. Regulatory Flexibility Act of 1980
    C. Unfunded Mandates Reform Act of 1995
    D. Executive Order 13132 (Federalism)
    E. Executive Order 12988 (Civil Justice Reform)
    F. Executive Order 13175 (Consultation and Coordination With 
Indian Tribal Governments)
    G. National Environmental Policy Act
    H. Paperwork Reduction Act of 1995

Table of Abbreviations

BLS--U.S. Bureau of Labor Statistics
CBA--collective bargaining agreement
CFR--Code of Federal Regulations
CPI-U--Consumer Price Index for All Urban Consumers
DHS--U.S. Department of Homeland Security
DOD--U.S. Department of Defense
DOL--U.S. Department of Labor
ETA--Employment and Training Administration
FR--Federal Register
FY--Fiscal Year
HR--human resources
HSA--Homeland Security Act of 2002
INA--Immigration and Nationality Act
LCA--Labor Condition Application for Nonimmigrant Workers
NEPA--National Environmental Policy Act
NPRM--notice of proposed rulemaking
OES--Occupational Employment Statistics
OEWS--Occupational Employment and Wage Statistics
OFLC--Office of Foreign Labor Certification
OMB--Office of Management and Budget
OPQ--Office of Performance and Quality
OPS--Office of Policy and Strategy
PRA--Paperwork Reduction Act of 1995
PRD--Policy Research Division
Pub. L.--Public Law
PWD--prevailing wage determination
RFA--Regulatory Flexibility Act of 1980
RIA--regulatory impact analysis
RIN--Regulation Identifier Number
SBA--U.S. Small Business Administration
SCOPS--Service Center Operations
Secretary--Secretary of Homeland Security
SOC--Standard Occupational Classification
UMRA--Unfunded Mandates Reform Act 1995
U.S.C.--United States Code
USCIS--U.S. Citizenship and Immigration Services

I. Public Participation

    DHS invites all interested parties to participate in this 
rulemaking by submitting written data, views, comments, and arguments 
on all aspects of this proposed rule. DHS also invites comments that 
relate to the economic, environmental, or federalism effects that might 
result from this proposed rule. Comments must be submitted in English, 
or an English translation must be provided. Comments that will provide 
the most assistance to USCIS in implementing these changes will 
reference a specific portion of the proposed rule, explain the reason 
for any recommended change, and include data, information, or authority 
that support such recommended change. Comments submitted in a manner 
other than via <a href="https://www.regulations.gov">https://www.regulations.gov</a>, including emails or letters 
sent to DHS or USCIS officials, will not be considered comments on the 
proposed rule and may not receive a response from DHS.
    Instructions: If you submit a comment, you must include the agency 
name (U.S. Citizenship and Immigration Services) and the DHS Docket No. 
USCIS-2025-0040 for this rulemaking. Please note all submissions will 
be posted, without change, to the Federal eRulemaking Portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, and will include any personal information you 
provide. Therefore, submitting this information makes it public. You 
may wish to consider limiting the amount of

[[Page 45987]]

personal information that you provide in any voluntary public comment 
submission you make to DHS. DHS may withhold information provided in 
comments from public viewing that it determines may impact the privacy 
of an individual or is offensive. For additional information, please 
read the Privacy and Security Notice available at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
    Docket: For access to the docket and to read background documents 
or comments received, go to <a href="https://www.regulations.gov">https://www.regulations.gov</a>, referencing 
DHS Docket No. USCIS-2025-0040. You may also sign up for email alerts 
on the online docket to be notified when comments are posted or a final 
rule is published.

II. Background

A. Purpose and Summary of the Proposed Regulatory Action

    DHS proposes to amend its regulations governing the selection 
process for registrations for H-1B cap subject petitions. Under the 
existing H-1B registration process, prospective petitioners (also known 
as registrants) seeking to file H-1B cap-subject petitions must first 
electronically register for each prospective beneficiary. USCIS then 
runs the H-1B selection process to randomly select unique beneficiaries 
based on properly submitted electronic registrations. If the unique 
beneficiary is randomly selected, then each registrant that registered 
for that beneficiary receives a registration selection notice and may 
file an H-1B cap-subject petition on their behalf.
    DHS proposes to amend the process through which it selects 
registrations for unique beneficiaries to move away from a purely 
random selection process to a weighted selection process. This proposal 
would cover registrations for petitions subject to the regular cap and 
those asserting eligibility for the advanced degree exemption. The 
proposal would also change how USCIS selects petitions in circumstances 
where USCIS has suspended the registration process (for instance, 
because of technical issues with the electronic registration system).
    Specifically, the proposal would weight registrations (or 
petitions) for selection generally based on each beneficiary's 
equivalent wage levels. When random selection is required because USCIS 
receives more registrations than USCIS projects to be needed to meet 
the numerical allocations, USCIS would conduct a weighted selection 
among the registrations for unique beneficiaries (or petitions) 
received generally based on the highest Occupational Employment and 
Wage Statistics (OEWS) wage level that the beneficiary's proffered wage 
would equal or exceed for the relevant Standard Occupational 
Classification (SOC) code in the area(s) of intended employment. The 
proffered wage is the wage that the employer intends to pay the 
beneficiary.
    Under the proposed process, registrations for unique beneficiaries 
or petitions would be assigned to the relevant OEWS wage level and 
entered into the selection pool as follows: registrations for unique 
beneficiaries or petitions assigned wage level IV would be entered into 
the selection pool four times, those assigned wage level III would be 
entered into the selection pool three times, those assigned wage level 
II would be entered into the selection pool two times, and those 
assigned wage level I would be entered into the selection pool one 
time. Each unique beneficiary would only be counted once toward the 
numerical allocation projections, regardless of how many registrations 
were submitted for that beneficiary or how many times the beneficiary 
is entered in the selection pool. This proposed weighting and selection 
process would not alter the prevailing wage level associated with a 
given position for U.S. Department of Labor (DOL) purposes, which is 
informed by a comparison of the requirements for the proffered position 
to the normal requirements for the occupational classification.\1\
---------------------------------------------------------------------------

    \1\ DOL, Employment and Training Administration (ETA), 
``Prevailing Wage Determination Policy Guidance: Nonagricultural 
Immigration Programs'' (revised Nov. 2009), <a href="https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf">https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf</a>.
---------------------------------------------------------------------------

    Through the proposed regulatory revisions, DHS aims to implement 
the numerical cap in a way that incentivizes employers to offer higher 
wages, or to petition for positions requiring higher skills and higher 
skilled aliens, that are commensurate with higher wage levels. The 
proposed process would favor the allocation of H-1B visas to higher 
skilled and higher paid aliens, while maintaining the opportunity for 
employers to secure H-1B workers at all wage levels.

B. Legal Authority

    The Secretary of Homeland Security (Secretary)'s authority for 
these proposed regulatory amendments is found in various sections of 
the Immigration and Nationality Act (INA or the Act), 8 U.S.C. 1101 et 
seq., and the Homeland Security Act of 2002 (HSA), Public Law 107-296, 
116 Stat. 2135, 6 U.S.C. 101 et seq. General authority for issuing this 
proposed rule is found in section 103(a) of the INA, 8 U.S.C. 1103(a), 
which authorizes the Secretary to administer and enforce the 
immigration and nationality laws and establish such regulations as the 
Secretary deems necessary for carrying out such authority, as well as 
section 112 of the HSA, 6 U.S.C. 112, which vests all of the functions 
of DHS in the Secretary and authorizes the Secretary to issue 
regulations.\2\ Further authority for these proposed regulatory 
amendments is found in:
---------------------------------------------------------------------------

    \2\ Although several provisions of the INA discussed in this 
NPRM refer exclusively to the ``Attorney General,'' such provisions 
are now to be read as referring to the Secretary of Homeland 
Security by operation of the HSA. See 6 U.S.C. 202(3), 251, 271(b), 
542 note, 552(d), 557; 8 U.S.C. 1103(a)(1), (g), 1551 note; Nielsen 
v. Preap, 586 U.S. 392, 397 n.2 (2019); see also 6 U.S.C. 522 
(``Nothing in this chapter, any amendment made by this chapter, or 
in section 1103 of Title 8, shall be construed to limit judicial 
deference to regulations, adjudications, interpretations, orders, 
decisions, judgments, or any other actions of the Secretary of 
Homeland Security or the Attorney General.'').
---------------------------------------------------------------------------

    <bullet> Section 101(a)(15)(H)(i)(b) of the INA, 8 U.S.C. 
1101(a)(15)(H)(i)(b), which establishes the H-1B nonimmigrant 
classification;
    <bullet> Section 214(a)(1) of the INA, 8 U.S.C. 1184(a)(1), which 
authorizes the Secretary to prescribe, by regulation, the time and 
conditions of the admission of nonimmigrants;
    <bullet> Section 214(c)(1) of the INA, 8 U.S.C. 1184(c)(1), which, 
inter alia, authorizes the Secretary to prescribe how an importing 
employer may petition for nonimmigrant workers, including nonimmigrants 
described at section 101(a)(15)(H)(i)(b) of the INA, 8 U.S.C. 
1101(a)(15)(H)(i)(b), as well as the form of the petition and the 
information that an importing employer must provide in the petition;
    <bullet> Section 214(g) of the INA, 8 U.S.C. 1184(g), which, inter 
alia, prescribes the H-1B numerical limitations, various exceptions to 
those limitations, and the period of authorized admission for H-1B 
nonimmigrants;
    <bullet> Section 214(i) of the INA, 8 U.S.C. 1184(i), which sets 
forth the definition and requirements of a ``specialty occupation'';
    <bullet> Section 235(d)(3) of the INA, 8 U.S.C. 1225(d)(3), which 
authorizes ``any immigration officer . . . to administer oaths and to 
take and consider evidence of or from any person touching the privilege 
of any alien or person he believes or suspects to be an alien to enter, 
reenter, transit through, or reside in the United States or concerning 
any matter which is material and relevant to the enforcement of [the 
INA] and the administration of [DHS]'';

[[Page 45988]]

    <bullet> Section 287(b) of the INA, 8 U.S.C. 1357(b), which 
authorizes the taking and consideration of evidence ``concerning any 
matter which is material or relevant to the enforcement of [the INA] 
and the administration of [DHS]'';
    <bullet> Section 101(b)(1)(F) of the HSA, 6 U.S.C. 111(b)(1)(F), 
which provides that a primary mission of DHS is to ``ensure that the 
overall economic security of the United States is not diminished by 
efforts, activities, and programs aimed at securing the homeland'';
    <bullet> Section 402 of the HSA, 6 U.S.C. 202, which charges the 
Secretary with ``[e]stablishing and administering rules \3\ . . . 
governing the granting of visas or other forms of permission . . . to 
enter the United States'' and ``[e]stablishing national immigration 
enforcement policies and priorities''; see also HSA sec. 428, 6 U.S.C. 
236; and
---------------------------------------------------------------------------

    \3\ Section 102(e) of the HSA, 6 U.S.C. 112(e), provides that 
``the issuance of regulations by the Secretary shall be governed by 
the provisions of chapter 5 of title 5, except as specifically 
provided in this chapter, in laws granting regulatory authorities 
that are transferred by this chapter, and in laws enacted after 
November 25, 2002.''
---------------------------------------------------------------------------

    <bullet> Section 451(a)(3) and (b) of the HSA, 6 U.S.C. 271(a)(3) 
and (b), transferring to USCIS the authority to adjudicate petitions 
for nonimmigrant status, establish policies for performing that 
function, and set national immigration services policies and 
priorities.

C. The H-1B Visa Program's Numerical Cap and Exemptions

    The H-1B visa program allows U.S. employers to temporarily hire 
foreign workers to perform services in a specialty occupation, services 
related to a U.S. Department of Defense (DOD) cooperative research and 
development project or coproduction project, or services of 
distinguished merit and ability in the field of fashion modeling. See 
INA 101(a)(15)(H)(i)(b), 8 U.S.C. 1101(a)(15)(H)(i)(b); Immigration Act 
of 1990, Public Law 101-649, sec. 222(a)(2), 104 Stat. 4978 (Nov. 29, 
1990); 8 CFR 214.2(h). A specialty occupation is defined as an 
occupation that requires the (1) theoretical and practical application 
of a body of highly specialized knowledge, and (2) attainment of a 
bachelor's or higher degree in the specific specialty (or its 
equivalent) as a minimum qualification for entry into the occupation in 
the United States. See INA 214(i)(l), 8 U.S.C. 1184(i)(l).
    Congress has established limits on the number of foreign workers 
who may be granted initial H-1B nonimmigrant visas or status each 
fiscal year (FY) (commonly known as the ``cap''). See INA sec. 214(g), 
8 U.S.C. 1184(g). The total number of foreign workers who may be 
granted initial H-1B nonimmigrant status during any fiscal year may not 
exceed 65,000. See INA sec. 214(g), 8 U.S.C. 1184(g). Certain petitions 
are exempt from the 65,000 numerical limitation.\4\ See INA sec. 
214(g)(5) and (7), 8 U.S.C. 1184(g)(5) and (7). The annual exemption 
from the 65,000 cap for H-1B workers who have earned a qualifying U.S. 
master's or higher degree may not exceed 20,000 foreign workers. See 
INA sec. 214(g)(5)(C), 8 U.S.C. 1184(g)(5)(C).
---------------------------------------------------------------------------

    \4\ Exempt petitions are petitions for (1) employment (or an 
offer of employment) at an institution of higher education or a 
related affiliated nonprofit entity, (2) employment (or an offer of 
employment) at a nonprofit research organization or a government 
research organization, or (3) H-1B workers who have earned a 
qualifying U.S. master's degree or higher degree. Also exempt are 
those petitions for beneficiaries who have previously been counted 
under the cap, unless eligible for a full 6-years of authorized 
admission when the petition is filed, and who seek to change jobs or 
extend their stay during their 6-year period of authorized 
admission, and those exempt from the 6-year period of authorized 
admission limitation based on section 104(c) or 106(a) and (b) of 
the American Competitiveness in the Twenty-First Century Act (AC21), 
Public Law 106-313, 114 Stat. 1254 (Oct. 17, 2000), as amended by 
section 11030A of the 21st Century Department of Justice 
Appropriations Authorization Act, Public Law 107-273, 116 Stat. 1758 
(2002).
---------------------------------------------------------------------------

D. Wage Requirement

    An H-1B petitioner generally must file with DOL a Labor Condition 
Application for Nonimmigrant Workers (LCA) attesting, among other 
things, that it will pay the beneficiary a wage that is either (1) the 
actual wage that it pays to all other individuals with similar 
experience and qualifications for the specific employment in question 
or (2) the prevailing wage for the occupational classification in the 
area of intended employment based on the best information available at 
the time of filing the application, whichever is greater.\5\ The H-1B 
petitioner must also attest that it will provide working conditions for 
the beneficiary that will not adversely affect the working conditions 
of workers similarly employed. See INA sec. 212(n)(1)(A)(i)-(ii), 8 
U.S.C. 1182(n)(1)(A)(i)-(ii); 20 CFR part 655, subpart H. DOL 
regulations state that the wage requirement includes the employer's 
obligation to offer benefits and eligibility for benefits provided as 
compensation for services to the H-1B nonimmigrant on the same basis, 
and in accordance with the same criteria, as the employer offers to 
similarly employed U.S. workers. See 20 CFR 655.731(c)(3). DOL 
regulations additionally provide that the employer must afford working 
conditions to the H-1B beneficiary on the same basis and in accordance 
with the same criteria as it affords to its U.S. workers who are 
similarly employed, and without adverse effect upon the working 
conditions of such U.S. workers. See 20 CFR 655.732(a).
---------------------------------------------------------------------------

    \5\ An H-1B petition for H-1B2 DOD research and development 
project positions or services is exempt from the LCA requirement.
---------------------------------------------------------------------------

    The LCA, certified by DOL, requires that the petitioner specify, 
among other information: The SOC code, the wage that an employer will 
pay the nonimmigrant worker, the prevailing wage rate for the job 
opportunity, the source of the prevailing wage rate, and the applicable 
prevailing wage level for the job opportunity if the OEWS survey is the 
source of the prevailing wage rate.\6\ If there is an applicable 
collective bargaining agreement (CBA) that was negotiated at arms-
length between a union and the employer that contains a wage rate 
applicable to the occupation, then the CBA must be used to determine 
the prevailing wage for a petitioner's job opportunity. 20 CFR 
655.731(a)(2). In the absence of an applicable CBA, the petitioner 
generally has the option of determining the prevailing wage by one of 
three avenues: (1) obtaining a prevailing wage determination (PWD) 
issued by DOL; \7\ (2) obtaining the prevailing wage from an 
independent authoritative source that satisfies the requirements set 
forth in 20 CFR 655.731(b)(3)(iii)(B); or (3) obtaining the prevailing 
wage from another legitimate source of wage information that satisfies 
the requirements set forth in 20 CFR 655.731(b)(3)(iii)(C). 20 CFR 
655.731(a)(2)(ii)(A)-(C). An employer may also elect to rely on a wage 
determination issued pursuant to the provisions of the Davis Bacon Act, 
Public Law 107-217 (Aug. 21, 2002), as amended, 40 U.S.C. 276a et seq., 
or the McNamara-O'Hara Service Contract Act of 1965, Public Law 89-286 
(Oct. 22, 1965), as amended, 41 U.S.C. 351 et seq., if applicable. 20 
CFR 655.731(b)(3)(i). When using the OEWS survey to determine the 
prevailing wage for a particular job opportunity, the first step is to 
select the most relevant occupational classification by examining the 
employer's job opportunity and comparing it to the tasks, knowledge, 
and work activities generally associated with relevant

[[Page 45989]]

occupations to ensure that the most relevant occupational code has been 
selected.\8\ Then, the relevant prevailing wage level is selected by 
comparing the requirements for the job opportunity to the occupational 
requirements, that is, the tasks, knowledge, skills, and specific 
vocational preparation (education, training, and experience) generally 
required for acceptable performance in that occupation.\9\ DOL utilizes 
four prevailing wage levels classified as ``entry,'' ``qualified,'' 
``experienced,'' and ``fully competent,'' respectively, relative to the 
occupation.\10\
---------------------------------------------------------------------------

    \6\ DOL, ETA, Form ETA-9035 and ETA-9035e, Labor Condition 
Application for Nonimmigrant Workers, Items F.a.10-14 (expires Oct. 
31, 2027), <a href="https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/Form%20ETA-9035_exp%2010.31.2027.pdf">https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/Form%20ETA-9035_exp%2010.31.2027.pdf</a>.
    \7\ DOL, ETA, ``Prevailing Wage Information and Resources,'' 
<a href="https://www.dol.gov/agencies/eta/foreign-labor/wages">https://www.dol.gov/agencies/eta/foreign-labor/wages</a> (last visited 
May 2, 2025).
    \8\ DOL, ETA, ``Prevailing Wage Determination Policy Guidance: 
Nonagricultural Immigration Programs'' (revised Nov. 2009), <a href="https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf">https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf</a>.
    \9\ See id.
    \10\ See id.
---------------------------------------------------------------------------

E. Need for Reform and Rationale for Proposed Rule

    Congressional intent behind creating the H-1B program was, in part, 
to help U.S. employers fill labor shortages in positions requiring 
highly skilled or highly educated workers.\11\ A key goal of the 
program at its inception was to help U.S. employers obtain the 
temporary employees they need to meet their business needs to remain 
competitive in the global economy.\12\ To address legitimate 
countervailing concerns of the adverse impact foreign workers could 
have on U.S. workers, Congress enacted a number of measures intended to 
protect U.S. workers, including the annual numerical limitations. 
Congress was concerned that a surplus of foreign labor could depress 
wages for all workers in the long run and recognized the cap as a means 
of ``continuous monitoring of all admissions.'' \13\
---------------------------------------------------------------------------

    \11\ See H.R. Rep. 101-723(I) (1990), as reprinted in 1990 
U.S.C.C.A.N. 6710, 6721.
    \12\ See Bipartisan Policy Center, ``Immigration in Two Acts,'' 
at 7 (Nov. 2015), <a href="https://bipartisanpolicy.org/wp-content/uploads/2019/03/BPC-Immigration-Legislation-Brief.pdf">https://bipartisanpolicy.org/wp-content/uploads/2019/03/BPC-Immigration-Legislation-Brief.pdf</a>, citing H.R. Rep. 101-
723(I) supra note 10 at 6721 (``At the time [1990], members of 
Congress were also concerned about U.S. competitiveness in the 
global economy and sought to use legal immigration as a tool in a 
larger economic plan, stating that `it is unlikely that enough U.S. 
workers will be trained quickly enough to meet legitimate employment 
needs, and immigration can and should be incorporated into an 
overall strategy that promotes the creation of the type of workforce 
needed in an increasingly global economy.' '').
    \13\ See H.R. Conf. Rep. 101-955, at 126 (1990), as reprinted in 
1990 U.S.C.C.A.N. 6784, 6790-91.
---------------------------------------------------------------------------

    The demand for H-1B workers subject to the annual numerical 
limitations has exceeded the availability of visa numbers every year 
for more than a decade.\14\ This high demand created a rush of 
simultaneous submissions at the beginning of the H-1B cap petition 
period, preventing application of the numerical limitations based 
solely on the order in which the petitions are received by USCIS. See 
Liu v. Mayorkas, 588 F. Supp. 3d 43, 48 (D.D.C. 2022) (discussing the 
high demand for H-1B visas, the operational challenges USCIS faced 
administering the H-1B cap because of the high demand, and the creation 
of the registration requirement).
---------------------------------------------------------------------------

    \14\ Total Number of H-1B Cap Registration Submissions and 
Selections, FY 2021-FY 2025, USCIS Office of Performance and Quality 
(OPQ), data queried 3/2025, TRK #17518; Total Number of H-1B Cap-
Subject Petitions Submitted, FY 2016-FY 2020, USCIS Service Center 
Operations (SCOPS), June 2019. See also Congressional Research 
Service, ``Temporary Professional Foreign Workers: Background, 
Trends, and Policy Issues'' (June 9, 2022), <a href="https://www.congress.gov/crs-product/R47159">https://www.congress.gov/crs-product/R47159</a> (``Employer petitions for new H-
1B workers have routinely exceeded the statutory numerical limits--
in some years exceeding limits during the first week or even on the 
first day that petitions are accepted by USCIS.'').
---------------------------------------------------------------------------

    Congress directed DHS to process earlier-filed petitions before 
later-filed petitions, see INA sec. 214(g)(3), 8 U.S.C. 1184(g)(3) 
(stating that aliens who are subject to the numerical limitations will 
be ``issued visas (or otherwise provided nonimmigrant status) in the 
order in which the petitions are filed''),\15\ but did not define what 
it means to ``file'' a petition, or how to order petitions that are 
filed during the same timeframe.
---------------------------------------------------------------------------

    \15\ See also Registration Requirement for Petitioners Seeking 
to File H-1B Petitions on Behalf of Cap-Subject Aliens, 84 FR 888, 
896 (Jan. 31, 2019) (noting that ``a literal application of this 
statutory language [to issue visas or otherwise provide H-1B status 
in the order in which the petitions are filed, down to the second] 
would lead to an absurd result'' because ``[s]uch a literal 
application would necessarily mean that processing delays pertaining 
to a petition earlier in the petition filing order would preclude 
issuance of a visa or provision of status to all other H-1B 
petitions later in the petition filing order.'' Therefore, USCIS' 
``longstanding approach to implementing the numerical limitation has 
been to project the number of petitions needed to reach the 
numerical limitation. . . .'').
---------------------------------------------------------------------------

    The Secretary has discretion to prescribe rules to fill such gaps 
in the INA. As noted earlier in this preamble, the Secretary has broad 
authority to administer and enforce the INA, establish such regulations 
as the Secretary deems necessary for carrying out such authority, and 
to prescribe the time and conditions under which an alien may be 
admitted to the United States as a nonimmigrant and how an importing 
employer may petition for nonimmigrant workers. See INA secs. 103(a), 
214(a)(1), and 214(c)(1), 8 U.S.C. 1103(a), 1184(a)(1), and 1184(c)(1).
    DHS has leveraged these authorities to make significant 
improvements to the H-1B selection process over the years in response 
to the high demand, consistent with the purpose and structure of the 
annual numerical limitations. The registration process, for instance, 
selects among ``registrations submitted electronically over a 
designated period of time to ensure the fair and orderly administration 
of the numerical allocations.'' 84 FR at 896.\16\
---------------------------------------------------------------------------

    \16\ DHS notes that the registration process, like the petition 
process that applies when registration is suspended, faithfully 
implements INA sec. 214(g)(3), 8 U.S.C. 1184(g)(3) by, among other 
things, ensuring that earlier-filed registrations and petitions 
receive priority over later ones. For instance, in addition to 
allowing for a more efficient administration of the annual numerical 
allocations, the process accounts for the possibility that DHS will 
receive an insufficient number of simultaneously submitted 
registrations during the initial registration to meet the H-1B 
regular cap; in such a circumstance, registration will remain open 
until USCIS has received a sufficient number of registrations for 
unique beneficiaries to meet the cap. See 8 CFR 
214.2(h)(8)(iii)(A)(5)(i); see also 84 FR at 896 (explaining that, 
where an insufficient number of registrations have been received 
during the initial registration period, USCIS would select all of 
the registrations properly submitted during the initial registration 
period, and that registrations submitted after the initial 
registration would continue to be selected on a rolling basis until 
such time as a sufficient number of registrations have been 
received).
---------------------------------------------------------------------------

    DHS's random selection process is a similar type of gap-filling 
measure. When this process was previously challenged, DHS 
prevailed.\17\ The court observed that ``[i]t is not difficult to 
envision a scenario where many more petitions arrive on the final 
receipt date than are needed to fill the statutory cap, and processing 
them `in order' . . . may also be random and arbitrary.'' \18\ This 
court importantly held that ``Congress left to the discretion of USCIS 
how to handle simultaneous submissions'' and ``USCIS has discretion to 
decide how best to order those petitions.'' \19\ In short, DHS has 
authority to engage in reasoned decision making with regard to how to 
administer the H-1B petitioning process (including whether to require a 
registration process as an antecedent procedural step to be eligible to 
file an H-1B cap-subject petition), and how to best select among 
simultaneously submitted H-1B registrations or petitions.\20\ Congress 
provided DHS

[[Page 45990]]

with the authority to better ensure a fair, orderly, and efficient 
allocation of H-1B cap numbers based on reasoned decision making, 
including consideration of the overall statutory scheme and purpose of 
the classification: the selection of highly skilled and paid 
nonimmigrants in the United States while protecting the wages and 
working conditions of U.S. workers.
---------------------------------------------------------------------------

    \17\ See Walker Macy LLC v. USCIS, 243 F. Supp. 3d 1156 (D. Or. 
2017).
    \18\ Id. at 1174.
    \19\ Id. at 1176.
    \20\ See Loper Bright Enters. v. Raimondo, 603 U.S. 369, 395 
(2024) (explaining that a statute's meaning may be that the agency 
is authorized to exercise a degree of discretion and empowered to 
prescribe rules to fill in statutory gaps based on ``reasoned 
decision making''); see also Liu v. Mayorkas, 588 F.Supp.3d 43, 55 
(D.D.C. 2022) (finding that the registration requirement does not 
violate the INA, is not ultra vires, and that registration is merely 
``an antecedent procedural step to be eligible to file an H-1B cap[-
subject] petition''); Walker Macy LLC v. USCIS, 243 F. Supp. 3d 1156 
(D. Or. 2017). DHS acknowledges, as DHS did in the 2020 NPRM, that 
in the preamble to the 2019 H-1B Registration final rule, DHS stated 
that prioritization of registration selection on factors other than 
degree level, such as salary, would require statutory changes. 85 FR 
at 69244 (citing 83 FR at 914). As DHS stated in the 2020 NPRM and 
as explained earlier in this section, however, DHS's interpretation 
of the statute has changed.
---------------------------------------------------------------------------

    DHS acknowledges that it has implemented regulations over the years 
that provide for a random selection from all petitions or registrations 
that occur within a certain timeframe. See, e.g., 70 FR 23775 (May 5, 
2005), 84 FR 888 (Jan. 31, 2019). However, while the current random 
selection of petitions or registrations is reasonable, DHS believes it 
is neither the optimal, nor the exclusive method of selecting 
registrations or petitions toward the numerical allocations when more 
registrations or petitions, as applicable, are simultaneously submitted 
than projected as needed to reach the numerical allocations. Pure 
randomization does not serve the ends of the H-1B program or 
Congressional intent to help U.S. employers fill labor shortages in 
positions requiring highly skilled workers.\21\ Under the current 
random selection process, in every fiscal year from FY 2019 through FY 
2024, petitions for beneficiaries at wage level III and wage level IV 
were the least represented among all wage levels in cap-subject H-1B 
filings, both under the regular cap and the advanced-degree 
exemption.\22\
---------------------------------------------------------------------------

    \21\ See H.R. Rep. 101-723(I) (1990), as reprinted in 1990 
U.S.C.C.A.N. 6710, 6721 (stating ``The U.S. labor market is now 
faced with two problems that immigration policy can help to correct. 
The first is the need of American business for highly skilled, 
specially trained personnel to fill increasingly sophisticated jobs 
for which domestic personnel cannot be found and the need for other 
workers to meet specific labor shortages.'').
    \22\ USCIS OPQ, CLAIMS3 and ELIS, queried 3/2025, TRK #17265. 
LCA data from DOL. Disclosure Files for LCA Programs (H-1B, H-1B1, 
E-3), FY-2018-FY-2024. DOL data downloaded from <a href="https://www.dol.gov/agencies/eta/foreign-labor/performance">https://www.dol.gov/agencies/eta/foreign-labor/performance</a>.
---------------------------------------------------------------------------

    As discussed previously in this preamble, wage levels are used in 
determining a prevailing wage for a given occupation in a given 
location under the OEWS survey based on the education, training, and 
experience required for the specific position. Wage level I, which DOL 
has set at approximately the 17th percentile of the OEWS wage 
distribution for the relevant occupation in the relevant location, 
applies to positions requiring ``entry'' level workers; wage level II, 
set at approximately the 34th percentile, applies to positions 
requiring ``qualified'' workers; wage level III, set at approximately 
the 50th percentile, applies to positions requiring ``experienced'' 
workers; and wage level IV, set at approximately the 67th percentile, 
applies to positions requiring ``fully competent'' workers.\23\ In 
other words, wage levels III and IV--the two wage levels that meet or 
exceed the median wage (50th percentile) of the OEWS wage distribution 
for a specific occupation and location--are the least represented wage 
levels in H-1B petitions under the current process.
---------------------------------------------------------------------------

    \23\ See, e.g., Strengthening Wage Protections for the Temporary 
and Permanent Employment of Certain Aliens in the United States, 85 
FR 63872, 63875 (Oct. 8, 2020) (later vacated); Wage Methodology for 
the Temporary Non-Agricultural Employment H-2B Program, 80 FR 24146, 
24148 n.6 (Apr. 29, 2015); Daniel Costa & Ron Hira, Economic Policy 
Institute, ``H-1B Visas and Prevailing Wage Level'' (May 4, 2020), 
<a href="https://www.epi.org/publication/h-1b-visas-and-prevailing-wage-levels">https://www.epi.org/publication/h-1b-visas-and-prevailing-wage-levels</a>.
---------------------------------------------------------------------------

    DHS believes a better reasoned policy, consistent with the intent 
of the H-1B statutory scheme, is to utilize the numerical cap in a way 
that incentivizes a U.S. employer's recruitment of beneficiaries for 
positions requiring the highest skill levels within the visa 
classification or otherwise earning the highest wages in an 
occupational classification and area of intended employment, which 
generally correlate with higher skill levels. Put simply, because 
demand for H-1B visas has exceeded the annual supply for more than a 
decade,\24\ DHS prefers that simultaneously submitted registrations for 
cap-subject H-1B visas be selected in a manner that favors 
beneficiaries earning the highest wages relative to their SOC codes and 
area(s) of intended employment.
---------------------------------------------------------------------------

    \24\ Total Number of H-1B Cap Registration Submissions and 
Selections, FY 2021--FY 2025, USCIS OPQ, data queried 3/2025, TRK 
#17518; Total Number of H-1B Cap-Subject Petitions Submitted, FY 
2016-FY 2020, USCIS SCOPS, June 2019. See also Congressional 
Research Service, ``Temporary Professional Foreign Workers: 
Background, Trends, and Policy Issues'' (June 9, 2022), <a href="https://www.congress.gov/crs-product/R47159">https://www.congress.gov/crs-product/R47159</a>.
---------------------------------------------------------------------------

    DHS believes that salary generally is a reasonable proxy for skill 
level.\25\ DHS data show a correlation between higher salaries and 
higher skill and wage levels.\26\ As a position's required skill level 
increases relative to the occupation, so, too, may the wage level, and 
necessarily, the corresponding prevailing wage.\27\ A proffered wage 
that corresponds to the prevailing wage rate reflecting a higher wage 
level is generally a reasonable proxy for the higher level of skill 
required for the position. DHS recognizes, however, that some employers 
may choose to offer a higher proffered wage to a certain beneficiary to 
be more competitive in the H-1B selection process. In that situation, 
while the proffered wage may not necessarily reflect the skill level 
required for the position in the strict sense of DOL's PWD, the 
proffered wage still is a reasonable reflection of the value the 
employer has placed on that specific beneficiary. DHS believes that an 
employer who offers a higher wage than required by the prevailing wage 
level does so because that higher wage is a clear reflection of the 
beneficiary's value to the employer, which, even if not related to the 
position's skill level per se, reflects the unique qualities the 
beneficiary possesses. Accordingly, the changes proposed in this rule 
would better ensure that the H-1B cap selection process favors 
relatively higher-skilled, higher-valued, or higher-paid foreign 
workers rather than continuing to allow numerically-limited cap numbers 
to be allocated predominantly to workers in lower skilled or lower paid 
positions.\28\

[[Page 45991]]

Ultimately, prioritizing in the previously described manner would 
incentivize employers to offer higher wages or higher skilled positions 
to H-1B workers and disincentivize the existing widespread use of the 
H-1B program to fill lower paid or lower skilled positions without 
effectively precluding beneficiaries with lower wage levels or entry 
level positions.\29\
---------------------------------------------------------------------------

    \25\ See DOL, ETA, ``Wage Methodology for the Temporary Non-
Agricultural Employment H-2B Program,'' 76 FR 3452, 3453 (Jan. 19, 
2011) (it is a ``largely self-evident proposition that workers in 
occupations that require sophisticated skills and training receive 
higher wages based on those skills.''); Daniel Costa & Ron Hira, 
Economic Policy Institute, ``H-1B Visas and Prevailing Wage Level'' 
(May 4, 2020), <a href="https://www.epi.org/publication/h-1b-visas-and-prevailing-wage-levels">https://www.epi.org/publication/h-1b-visas-and-prevailing-wage-levels</a>. (``Specialized skills should command high 
wages; such skills are typically a function of inherent capability, 
education level, and experience. It would be reasonable to expect 
that these workers should receive wages higher than the median 
wage.'').
    \26\ For example, in Computer and Mathematical Occupations, the 
FY 2024 national median salary of H-1B workers for Level I was 
$89,253; for Level II was $106,000; for Level III was $140,000; and 
for Level IV was $163,257. USCIS OPQ, SAS PME C3 Consolidated, VIBE, 
DOL OFLC TLC Disclosure Data, queried 4/2025, TRK #17347.
    \27\ DOL, ETA, ``Prevailing Wage Determination Policy Guidance: 
Nonagricultural Immigration Programs'' (revised Nov. 2009), <a href="https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf">https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf</a> (noting that a wage level 
increase may be warranted if a position's requirements indicate 
skills that are beyond those of an entry level worker).
    \28\ See Daniel Costa & Ron Hira, Economic Policy Institute, 
``H-1B Visas and Prevailing Wage Level'' (May 4, 2020), <a href="https://www.epi.org/publication/h-1b-visas-and-prevailing-wage-levels/">https://www.epi.org/publication/h-1b-visas-and-prevailing-wage-levels/</a> 
(pointing to data that ``all H-1B employers, but especially the 
largest employers, use the H-1B program either to hire relatively 
lower-wage workers (relative to the wages paid to other workers in 
their occupation) who possess ordinary skills or to hire skilled 
workers and pay them less than the true market value''); George 
Fishman, Center for Immigration Studies, ``Elon Musk is Right about 
H-1Bs'' (Jan. 9, 2025), <a href="https://cis.org/Report/Elon-Musk-Right-about-H1Bs">https://cis.org/Report/Elon-Musk-Right-about-H1Bs</a> (noting the benefit of giving preference to prospective 
H-1B workers who are ``the best and brightest (those promised the 
highest salaries)''); Norm Matloff, Barron's, ``Where are the `Best 
and Brightest?' '' (June 8, 2013), <a href="https://www.barrons.com/articles/SB50001424052748703578204578523472393388746">https://www.barrons.com/articles/SB50001424052748703578204578523472393388746</a> (``The data show that 
most of the foreign tech workers are ordinary folks doing ordinary 
work.''); Norman Matloff, Center for Immigration Studies, ``H-1Bs: 
Still Not the Best and the Brightest'' (May 12, 2008), <a href="https://cis.org/Report/H1Bs-Still-Not-Best-and-Brightest">https://cis.org/Report/H1Bs-Still-Not-Best-and-Brightest</a> (presenting ``data 
analysis showing that the vast majority of the foreign workers--
including those at most major tech firms--are people of just 
ordinary talent, doing ordinary work.''); Adam Ozimek, Connor 
O'Brien, & John Lettieri, Economic Innovation Group, ``Exceptional 
by Design'' (Jan. 2025), <a href="https://eig.org/wp-content/uploads/2025/01/Exceptional-by-Design.pdf">https://eig.org/wp-content/uploads/2025/01/Exceptional-by-Design.pdf</a> (``Wages are a clear expression of the 
value firms expect a worker to contribute, yet the H-1B gives no 
preference to workers with higher salary offers.'').
    \29\ See Daniel Costa & Ron Hira, Economic Policy Institute, 
``H-1B Visas and Prevailing Wage Level'' (May 4, 2020), <a href="https://www.epi.org/publication/h-1b-visas-and-prevailing-wage-levels/">https://www.epi.org/publication/h-1b-visas-and-prevailing-wage-levels/</a>.
---------------------------------------------------------------------------

    While DHS prefers that cap-subject H-1B visas be allocated in a 
manner that favors beneficiaries earning the highest wages, DHS also 
recognizes the value in maintaining the opportunity for employers to 
secure H-1B workers at all wage levels. In this respect, this proposed 
rule differs from the wage-based selection rule that DHS finalized in 
2021. On November 2, 2020, DHS proposed a rule (85 FR 69236) to amend 
its regulations governing the process by which USCIS selects H-1B 
registrations for filing of H-1B cap-subject petitions, or H-1B 
petitions for any year in which the registration requirement will be 
suspended. The rule was finalized on January 8, 2021 (2021 H-1B 
Selection Final Rule, 86 FR 1676), and its implementation was delayed 
shortly thereafter.\30\ However, after the U.S. District Court for the 
Northern District of California vacated it,\31\ the rule was 
subsequently withdrawn and was therefore never implemented.\32\ Under 
the 2021 H-1B Selection Final Rule, USCIS would have ranked and 
selected registrations generally based on the highest Occupational 
Employment Statistics (OES) \33\ prevailing wage level that the 
proffered wage equaled or exceeded for the relevant SOC code and 
area(s) of intended employment, beginning with level IV and proceeding 
in descending order with levels III, II, and I. The 2021 H-1B Selection 
Final Rule was expected to result in the likelihood that registrations 
for level I wages would not be selected, as well as a reduced 
likelihood that registrations for level II would be selected. 86 FR 
1676, 1724 (Jan. 8, 2021). DHS believes the selection process finalized 
under the 2021 H-1B Selection Final Rule was a reasonable approach to 
facilitate the admission of higher skilled or higher paid workers. 
However, DHS now believes that rule did not capture the optimal 
approach because it effectively left little or no opportunity for the 
selection of lower wage level or entry level workers, some of whom may 
still be highly skilled.\34\ Unlike the 2021 H-1B Selection Final Rule, 
under this proposed rule, USCIS would assign a weight to--rather than 
rank and select--registrations generally based on their corresponding 
OEWS wage level.\35\ By engaging in a wage-level-based weighting of 
registrations for unique beneficiaries, DHS would better ensure that 
initial H-1B visas and status grants would more likely go to the 
highest skilled or highest paid beneficiaries, while not effectively 
precluding those at lower wage levels. Facilitating the admission of 
higher skilled workers ``would benefit the economy and increase the 
United States' competitive edge in attracting the `best and the 
brightest' in the global labor market,'' consistent with the goals of 
the H-1B program.\36\
---------------------------------------------------------------------------

    \30\ The rule was scheduled to go into effect on March 9, 2021. 
On February 8, 2021, DHS issued a final rule delaying the effective 
date of the H-1B Selection Final Rule to December 31, 2021. 
Modification of Registration Requirement for Petitioners Seeking to 
File Cap-Subject H-1B Petitions; Delay of Effective Date, 86 FR 8543 
(Feb. 8, 2021).
    \31\ Chamber of Commerce of the U.S. v. DHS, No. 4:20-cv-07331, 
2021 WL 4198518 (N.D. Cal. Sept. 15, 2021) (vacating the rule as 
improperly issued but not reaching the merits of plaintiffs' 
alternative arguments).
    \32\ Following several months of litigation, on September 15, 
2021, the court vacated the rule and remanded the matter to DHS and 
DHS subsequently withdrew the rule. On December 22, 2021, DHS issued 
a final rule to withdraw the final rule published on January 8, 
2021, because that rule had been vacated by a Federal district 
court. Modification of Registration Requirement for Petitioners 
Seeking to File Cap-Subject H-1B Petitions, Implementation of 
Vacatur, 86 FR 72516 (Dec. 22, 2021).
    \33\ The 2021 H-1B Selection Final Rule referred to the OES wage 
level based on terminology used at the time. However, the OES 
program has since started using the name Occupational Employment and 
Wage Statistics (OEWS). See <a href="https://www.bls.gov/oes/notices/2023/occupational-employment-and-wage-statistics-oews.htm">https://www.bls.gov/oes/notices/2023/occupational-employment-and-wage-statistics-oews.htm</a> (last visited 
May 2, 2025).
    \34\ For example, an entry level (level I) worker in an 
occupation classified by the Occupational Information Network 
(O*NET) as a Job Zone 5 occupation, which generally requires a 
graduate degree, may be higher skilled than a qualified (level II) 
worker in a Job Zone 4 occupation, which generally requires a 
bachelor's degree. See O*NET Online, ``Job Zones Overview,'' <a href="https://www.onetonline.org/help/online/zones">https://www.onetonline.org/help/online/zones</a> (last visited Apr. 11, 2025). 
O*NET, which maintains a database of occupational information, is 
developed under the sponsorship of ETA. See O*NET Online, ``About 
O*NET,'' <a href="https://www.onetcenter.org/overview.html">https://www.onetcenter.org/overview.html</a> (last visited Apr. 
11, 2025).
    \35\ The weighted selection method proposed in this rule is 
similar to an ``alternative'' approach that DHS described (and 
requested public comments on) in the 2020 NPRM. 85 FR 69236, 69242 
(Nov. 2, 2020). As DHS received only one responsive comment, which 
offered no substantive rationale in support of or against the 
alternative approach, DHS declined to consider it further in the 
final rule. 86 FR 1676, 1709 (Jan. 8, 2021).
    \36\ See Muzaffar Chishti & Stephen Yale-Loehr, Migration Policy 
Institute, ``The Immigration Act of 1990: Unfinished Business a 
Quarter-Century Later'' (July 2016), <a href="https://www.migrationpolicy.org/sites/default/files/publications/1990-Act_2016_FINAL.pdf">https://www.migrationpolicy.org/sites/default/files/publications/1990-Act_2016_FINAL.pdf</a> (``Sponsors of [the Immigration Act of 1990, 
which created the H-1B program as it exists today,] believed that 
facilitating the admission of higher-skilled immigrants would 
benefit the economy and increase the United States' competitive edge 
in attracting the `best and the brightest' in the global labor 
market.'').
---------------------------------------------------------------------------

F. Current Selection Process

    DHS implemented the electronic H-1B registration process after 
determining that it could introduce a cost-saving, innovative solution 
to facilitate the selection of H-1B cap-subject petitions toward the 
annual numerical allocations. 84 FR 888 (Jan. 31, 2019). Under the 
current regulation, all petitioners seeking to file an H-1B cap-subject 
petition must first electronically submit a registration for each 
beneficiary on whose behalf they seek to file an H-1B cap-subject 
petition, unless USCIS suspends the registration requirement. 8 CFR 
214.2(h)(8)(iii)(A)(1). In February 2024, building on its programmatic 
experience since implementing the H-1B registration process, DHS 
amended its regulations to implement a beneficiary-centric selection 
process for H-1B registrations to ensure each beneficiary would have 
the same chance of being selected, regardless of the number of 
registrations submitted on his or her behalf, among other integrity 
measures. 89 FR 7456 (Feb. 2, 2024). Under this beneficiary-centric 
selection process, registrations are counted based on the number of 
unique beneficiaries who are registered. 8 CFR 214.2(h)(8)(iii)(A)(4). 
Each unique beneficiary is counted once toward the random selection, 
regardless of how many registrations are submitted for that 
beneficiary. Id. A prospective petitioner whose registration is 
selected is eligible to file an H-1B cap-subject petition based on the 
selected registration during the associated filing period. 8 CFR 
214.2(h)(8)(iii)(A)(1).

[[Page 45992]]

    USCIS monitors the number of H-1B registrations for unique 
beneficiaries it receives during the announced registration period. At 
the conclusion of that period, if more registrations for unique 
beneficiaries are submitted than projected as needed to reach the 
numerical allocations, USCIS randomly selects from among unique 
beneficiaries for whom registrations were properly submitted, the 
number of unique beneficiaries projected as needed to reach the H-1B 
numerical allocations. 8 CFR 214.2(h)(8)(iii)(A)(5) and (6). Under this 
random H-1B registration selection process, USCIS first selects from a 
pool of all unique beneficiaries, including those eligible for the 
advanced degree exemption, a sufficient number of unique beneficiaries 
projected as needed to reach the regular cap. Id. Then from the 
remaining unselected beneficiaries who are eligible for the advanced 
degree exemption, USCIS selects a sufficient number of unique 
beneficiaries projected as needed to meet this exemption. Id.
    A prospective petitioner that properly registered for a beneficiary 
who is selected is notified of the selection and instructed that the 
petitioner is eligible to file an H-1B cap-subject petition for the 
beneficiary named in the selected registration within a filing period 
that is at least 90 days in duration. 8 CFR 214.2(h)(8)(iii)(D)(3). 
When registration is required, a petitioner seeking to file an H-1B 
cap-subject petition is not eligible to file the petition unless the 
petition is based on a valid, selected registration for the beneficiary 
named in the petition.\37\ 8 CFR 214.2(h)(8)(iii)(D)(1).
---------------------------------------------------------------------------

    \37\ During the initial filing period, if USCIS does not receive 
a sufficient number of petitions projected as needed to reach the 
numerical allocations, USCIS will select additional unique 
beneficiaries, or reopen the registration process, as applicable, to 
receive registrations for the number of unique beneficiaries 
projected as needed to reach the numerical allocations. See 8 CFR 
214.2(h)(8)(iii)(A)(7).
---------------------------------------------------------------------------

    In the event that there is an insufficient number of unique 
beneficiaries during the annual initial registration period to meet the 
number projected as needed to reach the numerical limitation, USCIS 
would select all of the unique beneficiaries for whom registrations 
were properly submitted during the initial registration period and 
notify all of the registrants that they may proceed with the filing of 
an H-1B cap-subject petition based on their selected registration(s). 8 
CFR 214.2(h)(8)(iii)(A)(5) and (6). USCIS would keep the registration 
period open beyond the initial registration period, allowing for the 
submission of registrations for additional beneficiaries, until it 
determines that a sufficient number of unique beneficiaries have 
registrations properly submitted on their behalf to reach the 
applicable numerical limitations. Id. When necessary, USCIS may 
randomly select the remaining number of unique beneficiaries deemed 
necessary to meet the applicable numerical limitation from among the 
registrations for unique beneficiaries received on the final 
registration date. Id.
    The current selection process also allows for selection based 
solely on the submission of petitions in any year in which the 
registration process is suspended due to technical or other issues. 8 
CFR 214.2(h)(8)(iv)(B). That process also allows for random selection 
in any year in which the number of petitions received on the final 
receipt date exceeds the number projected to meet the applicable 
numerical limitation. Id.

III. Discussion of Proposed Rule

    DHS proposes to amend the way USCIS selects unique beneficiaries, 
and the registrations submitted on their behalf for H-1B cap-subject 
petitions (or petitions, if the registration process is suspended), 
including those eligible for the advanced degree exemption, as follows.

A. Required Information on the Registration and the Petition

    For purposes of the weighting and selection process proposed in 
this rulemaking, a registrant would be required to select the box for 
the highest OEWS wage level (``wage level IV,'' ``wage level III,'' 
``wage level II,'' or ``wage level I'') that the beneficiary's 
proffered wage generally equals or exceeds for the relevant SOC code in 
the area(s) of intended employment.\38\ See proposed 8 CFR 
214.2(h)(8)(iii)(A)(4)(i). The registrant would also be required to 
provide the appropriate SOC code of the proffered position and the area 
of intended employment that served as the basis for the OEWS wage level 
indicated on the registration, in addition to any other information 
required on the electronic registration form (and on the H-1B petition) 
as specified in form instructions. The proffered wage,\39\ SOC code, 
and area(s) of intended employment would all be indicated on the LCA 
filed with the petition. While an LCA is not a requirement for 
registration, a valid registration must represent a bona fide job offer 
(see proposed 8 CFR 214.2(h)(10)(ii)), and each prospective petitioner 
must make the necessary certifications (see proposed 8 CFR 
214.2(h)(8)(iii)(A)(4)(i)), when submitting a registration, which, 
among other things, include that the registration is based on a bona 
fide job offer and that the prospective petitioner intends to file an 
H-1B petition on behalf of the beneficiary named in the registration if 
the beneficiary is selected. Therefore, DHS expects each prospective 
petitioner to know and be able to provide the relevant equivalent wage 
level and SOC code when submitting a registration.
---------------------------------------------------------------------------

    \38\ While wage levels on many registrations are likely to be 
based on the OEWS prevailing wage, in some circumstances (as 
discussed in this proposed rule), the registrant would derive the 
appropriate wage level based on the provisions of this rule. For 
example, where the prevailing wage is based on a private wage survey 
and lower than OEWS wage level I, the registrant would select level 
I, or where there is insufficient OEWS wage data, the registrant 
would derive the appropriate wage level based on the DOL 2009 
Prevailing Wage Guidance.
    \39\ The proffered wage is the wage that the employer intends to 
pay the beneficiary. On the LCA, the proffered wage is the ``wage 
rate paid to nonimmigrant workers.'' DOL, ETA, Form ETA-9035 and 
ETA-9035E, Labor Condition Application for Nonimmigrant Workers, 
Item F.a.10 (expires Oct. 31, 2027), <a href="https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/Form%20ETA-9035_exp%2010.31.2027.pdf">https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/Form%20ETA-9035_exp%2010.31.2027.pdf</a>.
---------------------------------------------------------------------------

    For registrants relying on a prevailing wage that is not based on 
the OEWS survey, if the proffered wage were less than the corresponding 
level I OEWS wage, the registrant would select the ``wage level I'' box 
on the registration form. See proposed 8 CFR 214.2(h)(8)(iii)(A)(4)(i). 
If the proffered wage is expressed as a range, the registrant would 
select the OEWS wage level that the lowest wage in the range will equal 
or exceed. This helps ensure fairness and prevents employers from 
artificially inflating a beneficiary's selection odds. If the H-1B 
beneficiary would work in multiple locations, or in multiple positions 
if the registrant is an agent, the registrant would select the box for 
the lowest equivalent wage level among the corresponding wage levels 
for each of those locations or each of those positions and would list 
the location corresponding to that lowest equivalent wage level as the 
area of intended employment.\40\ Id. For example, if the beneficiary 
would work as a software developer (SOC code 15-1252) with a proffered 
wage of $175,000 in both Sacramento, California, where such wage 
exceeds wage level IV, and San Francisco, California, where the highest 
level that such wage meets or

[[Page 45993]]

exceeds would be wage level II, the registrant would select the ``wage 
level II'' box on the registration form and list San Francisco as the 
area of intended employment.\41\ The proposal to require a registrant 
to select the lowest among the corresponding wage levels if a 
beneficiary would work in multiple locations, or in multiple positions 
if the registrant is an agent, is meant to prevent gaming of the 
weighted selection process. This removes a potential incentive to 
inflate wage levels through strategic location or position choices and 
helps ensure integrity of the selection process.\42\
---------------------------------------------------------------------------

    \40\ Providing the area of intended employment that corresponds 
to the lowest equivalent wage level at registration would not 
preclude the registrant, if selected and eligible to file a 
petition, from listing any additional concurrent work location(s) on 
the petition.
    \41\ See DOL, ``OFLC Wage Search,'' Software Developer, 
Sacramento, CA, <a href="https://flag.dol.gov/wage-data/wage-search">https://flag.dol.gov/wage-data/wage-search</a> (last 
visited Apr. 11, 2025); DOL, ``OFLC Wage Search,'' Software 
Developer, San Francisco, CA, <a href="https://flag.dol.gov/wage-data/wage-search">https://flag.dol.gov/wage-data/wage-search</a> (last visited Apr. 11, 2025).
    \42\ For instance, in the case of multiple positions, if DHS 
were to instead require registrants to select the box for the 
highest corresponding OEWS wage level that the proffered wage were 
to equal or exceed, then a petitioner could place the beneficiary in 
a lower paying position for most of the time and a higher paying 
position for only a small percent of the time, but use that higher 
paying position to increase their chances of being selected in the 
registration process. Similarly, in the case of multiple locations, 
a petitioner could place the beneficiary in a higher paying locality 
for only a small percent of time but use that higher paying locality 
to increase their chances of being selected in the registration 
process.
---------------------------------------------------------------------------

    DHS recognizes that some occupations do not have current OEWS 
prevailing wage information available on DOL's Office of Foreign Labor 
Certification (OFLC) Wage Search website.\43\ In the limited instance 
where there is no current OEWS prevailing wage information for the 
proffered position, such that there are not four wage levels for the 
occupational classification or there are not wage data for the area of 
intended employment, the registrant would follow DOL guidance on PWDs 
to determine which OEWS wage level to select on the registration.\44\ 
DHS expects each registrant would be able to identify the appropriate 
SOC code for the proffered position because all petitioners are 
required to identify the appropriate SOC code for the proffered 
position on the LCA, even when there are no applicable wage level data 
available or the OEWS survey is not used as the prevailing wage source 
on the LCA. Using the SOC code and the previously mentioned DOL 
guidance, all registrants would be able to determine the appropriate 
OEWS wage level for purposes of completing the registration, regardless 
of whether they were to specify an OEWS wage level or utilize the OEWS 
program as the prevailing wage source on an LCA.
---------------------------------------------------------------------------

    \43\ OFLC, a component of DOL, administers the OFLC Wage Search 
for OEWS prevailing wage information at <a href="https://flag.dol.gov/wage-data/wage-search">https://flag.dol.gov/wage-data/wage-search</a> (last visited Apr. 11, 2025).
    \44\ DOL, ETA, ``Prevailing Wage Determination Policy Guidance: 
Nonagricultural Immigration Programs'' (revised Nov. 2009), <a href="https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf">https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf</a>.
---------------------------------------------------------------------------

    The information required for the registration process provided in 
proposed 8 CFR 214.2(h)(8)(iii)(A)(4)(i) would also be collected on the 
petition, regardless of whether USCIS suspends the registration 
requirement. Specifically, in accordance with form instructions each 
petitioner would be required to select the highest OEWS wage level on 
the petition that the beneficiary's proffered wage generally equals or 
exceeds for the relevant SOC code in the area(s) of intended 
employment. See proposed 8 CFR 214.2(h)(8)(iv)(B). If the beneficiary's 
proffered wage is lower than OEWS wage level I, because it is based on 
a prevailing wage from another legitimate source (other than OEWS) or 
an independent authoritative source, the petitioner must select ``wage 
level I.'' Id. If the beneficiary will work in multiple locations, or 
in multiple positions if the petitioner is an agent, the petitioner 
must select the lowest corresponding OEWS wage level that the 
beneficiary's proffered wage will equal or exceed. Id. Where there is 
no current OEWS prevailing wage information for the beneficiary's 
proffered position, the petitioner must select the appropriate wage 
level that corresponds to the requirements of the beneficiary's 
proffered position using DOL's prevailing wage guidance. Id. The 
petitioner must also provide the SOC code of the proffered position in 
accordance with form instructions. The OEWS wage level selected on the 
petition must reflect the corresponding OEWS wage level as of the date 
that the registration underlying the petition was submitted. However, 
if the registration process is suspended, the OEWS wage level selected 
must reflect the corresponding OEWS wage level as of the date that the 
petition is submitted. Petitioners must submit evidence of the basis of 
the wage level selected on the registration as of the date that the 
registration underlying the petition was submitted, or, in the case of 
suspended registration, as of the date the petition is submitted. Such 
evidence could include, but is not limited to, a printout from the DOL 
OFLC Wage Search website for the beneficiary's SOC code and area(s) of 
intended employment as of the relevant date.

B. Process for Weighting and Selecting Registrations

    With regard to selection of unique beneficiaries and the 
registrations submitted on their behalf, because the beneficiary-
centric selection process is needed to prevent unscrupulous actors from 
unfairly increasing the odds that a beneficiary would be selected, DHS 
proposes to implement a wage-based selection process that would operate 
in conjunction with the existing beneficiary-centric selection process. 
Under this process the number of registrations submitted on a 
beneficiary's behalf does not impact his or her chance of being 
selected. See proposed 8 CFR 214.2(h)(8)(iii)(A)(4).
    Specifically, USCIS would continue to count registrations based on 
the number of unique beneficiaries who are registered. See proposed 8 
CFR 214.2(h)(8)(iii)(A)(4). When a random selection of registrations is 
necessary, DHS proposes that USCIS would enter each unique beneficiary 
into the selection pool in a weighted manner based on an assigned OEWS 
wage level. USCIS would assign each unique beneficiary an OEWS wage 
level based on the lowest OEWS wage level among all registrations 
submitted on the beneficiary's behalf. See proposed 8 CFR 
214.2(h)(8)(iii)(A)(4)(ii). Under this provision, where only one 
registration is submitted on a beneficiary's behalf, USCIS would assign 
the beneficiary to the OEWS wage level entered by the registrant in 
accordance with the form instructions. See proposed 8 CFR 
214.2(h)(8)(iii)(A)(4)(i) and (ii). However, for example, a beneficiary 
for whom a level I registration and a level IV registration have been 
submitted would be assigned to wage level I for the purpose of weighted 
selection. The proposal to assign the beneficiary to the lowest OEWS 
wage level among all of the registrations submitted on his or her 
behalf is intended to remove an incentive for multiple registrants to 
submit frivolous registrations with artificially high wage levels in an 
attempt to unfairly increase a beneficiary's chances of selection.\45\
---------------------------------------------------------------------------

    \45\ For instance, if USCIS were to instead assign a beneficiary 
to the highest wage level among all the registrations submitted on 
his or her behalf, or even an average of such wage levels, an 
unscrupulous employer might have an incentive to work with another 
entity to submit a frivolous level IV registration on the 
beneficiary's behalf to increase his or her chance of selection.
---------------------------------------------------------------------------

    If more unique beneficiaries had registrations properly submitted 
on their behalf during the annual initial registration period than 
projected as needed to reach the applicable numerical allocation, USCIS 
would

[[Page 45994]]

enter each unique beneficiary into the selection pool in a weighted 
manner as follows: a beneficiary assigned wage level IV would be 
entered into the selection pool four times, a beneficiary assigned wage 
level III would be entered into the selection pool three times, a 
beneficiary assigned wage level II would be entered into the selection 
pool two times, and a beneficiary assigned wage level I would be 
entered into the selection pool one time. See proposed 8 CFR 
214.2(h)(8)(iii)(A)(4)(ii) and (5)(ii). The random selection would be 
computer-generated and would only select a unique beneficiary one time, 
regardless of how many registrations were submitted for that 
beneficiary or how many times the beneficiary is entered in the 
selection pool.
    During an annual initial registration period that will last a 
minimum of 14 calendar days (and start at least 14 calendar days before 
the earliest date on which H-1B cap-subject petitions may be filed for 
a particular fiscal year), if there are fewer unique beneficiaries with 
properly submitted registrations on their behalf than projected to 
reach the regular cap, USCIS would select all registrations properly 
submitted. This would be regardless of the wage level. USCIS would 
thereafter continue to accept registrations until it determined a final 
registration date to ensure a sufficient number of unique beneficiaries 
projected to reach the regular cap. See proposed 8 CFR 
214.2(h)(8)(iii)(A)(5)(i). If more unique beneficiaries had 
registrations properly submitted on their behalf on the final 
registration date than needed to reach the regular cap, USCIS would 
select unique beneficiaries from among those registrations properly 
submitted on the final registration date in a weighted manner based on 
the beneficiary's assigned wage level as described previously. Id.
    Thereafter, USCIS would complete the same weighting and selection 
process to meet the advanced degree exemption. If a sufficient number 
of unique beneficiaries had registrations properly submitted on their 
behalf during the annual initial registration period than projected as 
needed to reach the advanced degree exemption, USCIS would select 
unique beneficiaries who are eligible for the advanced degree exemption 
in a weighted manner on the basis of the beneficiary's assigned wage 
level. See proposed 8 CFR 214.2(h)(8)(iii)(A)(6)(ii). During the annual 
initial registration period, if fewer unique beneficiaries had 
registrations properly submitted on their behalf than projected as 
needed to reach the advanced degree exemption, USCIS would select all 
registrations properly submitted during the annual initial registration 
period, regardless of wage level, and would continue to accept 
registrations until it were to determine a final registration date 
based on the submission of registrations for a sufficient number for 
unique beneficiaries to reach the advanced degree exemption. See 
proposed 8 CFR 214.2(h)(8)(iii)(A)(6)(i). If more unique beneficiaries 
had registrations properly submitted on their behalf on the final 
registration date than are needed to reach the advanced degree 
exemption, USCIS would select unique beneficiaries from among those 
registrations properly submitted on the final registration date in a 
weighted manner based on the beneficiary's assigned wage level as 
described previously. Id.
    If a beneficiary is selected, each registrant that properly 
submitted a registration on that beneficiary's behalf would be notified 
of the beneficiary's selection and would be eligible to file a petition 
on that beneficiary's behalf during the applicable petition filing 
period. See proposed 8 CFR 214.2(h)(8)(iii)(A)(4).

C. Process for Selecting Petitions in the Event of Suspended 
Registration

    With regard to petition selection if the electronic registration 
process were suspended, DHS proposes that USCIS would assign each 
petition to the equivalent OEWS wage level selected in accordance with 
form instructions. See proposed 8 CFR 214.2(h)(8)(iv)(B). In the event 
of suspended registration, if more petitions are received on the final 
receipt date than projected as needed to reach the applicable numerical 
limitation, USCIS would weight and select the petitions received as 
follows: a petition assigned to wage level IV would be entered into the 
selection pool four times, a petition assigned to wage level III would 
be entered into the selection pool three times, a petition assigned to 
wage level II would be entered into the selection pool two times, and a 
petition assigned to wage level I would be entered into the selection 
pool one time. See proposed 8 CFR 214.2(h)(8)(iv)(B)(1) and (2).

D. H-1B Cap-Subject Petition Filing Following Registration

    Unless registration is suspended, a petitioner would be eligible to 
file an H-1B petition for a beneficiary who may be counted under 
section 214(g)(1)(A) of the Act, or eligible for exemption under 
section 214(g)(5)(C) of the Act, only if the petition is based on a 
valid selected registration. See proposed 8 CFR 214.2(h)(8)(iii)(D)(1). 
An H-1B petition filed on behalf of a beneficiary would have to contain 
and be supported by the same identifying information and position 
information, including SOC code, provided in the selected registration 
and indicated on the LCA used to support the petition. Id. Such 
petition would also have to include a proffered wage that equals or 
exceeds the prevailing wage for the corresponding OEWS wage level in 
the registration for the SOC code in the area(s) of intended 
employment.\46\ Id. DHS recognizes that a beneficiary may have multiple 
work locations. While the electronic registration would require the 
registrant to list only one work location--specifically, the work 
location corresponding to the lowest equivalent wage level as the area 
of intended employment--the petition would have to list all addresses 
where the beneficiary will work. If the area of intended employment 
provided in the registration is not listed in the petition, USCIS may, 
in its discretion, determine that a change in the area(s) of intended 
employment would be permissible, provided such change is consistent 
with a bona fide job offer at the time of registration, as discussed in 
greater detail later in this preamble.
---------------------------------------------------------------------------

    \46\ In circumstances where the prevailing wage is based on a 
private wage survey and is lower than level I, the proffered wage on 
the H-1B petition would need to equal or exceed the prevailing wage 
reflected in the private survey used by the registrant to register 
the beneficiary at OEWS level I.
---------------------------------------------------------------------------

E. Process Integrity

    As is currently required, the entity submitting a registration and/
or petition would be required to certify the veracity of the contents 
of such submissions. If USCIS were to determine that the statement of 
facts contained on the registration or petition submission was 
inaccurate, fraudulent, materially misrepresents any fact, or was not 
true and correct, USCIS would deny the petition or, if approved, would 
revoke the petition approval. See 8 CFR 214.2(h)(10)(ii) and 
(11)(iii)(A)(2). In addition, USCIS would deny (or revoke, if approved) 
an H-1B cap-subject petition if it were not based on a valid selected 
registration for the beneficiary named or identified in the petition. 
See 8 CFR 214.2(h)(10)(ii) and (11)(iii)(A)(6). DHS proposes to revise 
8 CFR 214.2(h)(10)(ii) to clarify that a valid registration must 
represent a bona fide job offer. See proposed 8 CFR 214.2(h)(10)(ii).
    As stated previously, the proposed rule would require an H-1B 
petition filed after registration selection to contain and be supported 
by the same

[[Page 45995]]

identifying information and position information, including SOC code, 
provided in the selected registration and indicated on the LCA used to 
support the petition. See proposed 8 CFR 214.2(h)(8)(iii)(D)(1). Such 
petition must also include a proffered wage that equals or exceeds the 
prevailing wage for the corresponding OEWS wage level in the 
registration for the SOC code in the area(s) of intended employment as 
described in 8 CFR 214.2(h)(8)(iii)(A)(4)(i). See proposed 8 CFR 
214.2(h)(8)(iii)(D)(1). These requirements are necessary to prevent 
unscrupulous actors from entering information at the registration stage 
to increase their chance of selection without intending to employ the 
beneficiary under the same terms indicated at registration. DHS also 
expects that the area of intended employment provided at registration 
would be reflected as a worksite in the subsequently filed petition. 
However, recognizing that there are legitimate reasons that an intended 
work location might change between the time of registration and the 
time of filing the petition, DHS is proposing that USCIS may, in its 
discretion, find that a change in the area(s) of intended employment 
would be permissible, provided such change is consistent with a bona 
fide job offer at the time of registration. For instance, an employer 
with multiple offices might decide to place the beneficiary at a 
different office than originally intended at a wage that equals or 
exceeds the same equivalent wage level for the new location as that 
indicated on the registration. See id.
    DHS also recognizes that there are legitimate reasons that a 
petition would list more work locations than the intended work location 
listed on the registration, namely, when the beneficiary would work in 
multiple locations or in multiple positions if the registrant is an 
agent and is required to list the location with the lowest 
corresponding wage level. Using the earlier example of the beneficiary 
who would work in both Sacramento, California and San Francisco, 
California where the registration only listed San Francisco as the area 
of intended employment but the petition would list both Sacramento, 
California and San Francisco, California as work locations, USCIS would 
not consider this to be a ``change in the area(s) of intended 
employment'' under proposed 8 CFR 214.2(h)(8)(iii)(D)(1).
    Additionally, under the existing registration system, petitioners 
must already certify that each registration they submit reflects a 
legitimate job offer, and this rule would revise 8 CFR 214.2(h)(10)(ii) 
to clarify that a valid registration must represent a bona fide job 
offer.\47\ As such, each registrant should be able to identify the 
appropriate SOC code and wage level for the proffered position at the 
registration stage. The requirements enumerated at proposed 8 CFR 
214.2(h)(8)(iii)(D)(1) are necessary for program integrity and align 
with existing job offer requirements.
---------------------------------------------------------------------------

    \47\ In this context, a ``legitimate job offer'' and a ``bona 
fide job offer'' mean the same thing. DHS proposes to use the phrase 
``bona fide job offer'' to more closely align with the definition of 
a ``United States employer'' at 8 CFR 214.2(h)(4)(ii), which 
requires that the employer have ``a bona fide job offer for the 
beneficiary to work within the United States.''
---------------------------------------------------------------------------

    The proposed rule would also allow USCIS to deny a subsequent new 
or amended petition filed by the petitioner, or a related entity, on 
behalf of the same beneficiary if USCIS were to determine that the 
filing of the new or amended petition was part of the petitioner's 
attempt to unfairly increase the odds of selection during the 
registration (or petition, if applicable) selection process, such as by 
reducing the proffered wage to an amount that would be equivalent to a 
lower wage level than that indicated on the original registration or 
petition. See proposed 8 CFR 214.2(h)(10)(iii). In this context, 
attempting to ``unfairly increase the odds of selection'' generally 
refers to attempting to derive the benefit from the increased chance of 
selection associated with a higher corresponding wage level without 
having a bona fide job offer at the corresponding wage level selected 
by the registrant during registration. Additionally, a new or amended 
petition containing a proffered wage equivalent to a lower wage level 
than that indicated on the original registration or petition may reveal 
an attempt to ``unfairly increase the odds of selection'' or indicate 
that the registration or petition did not in fact represent a bona fide 
job offer, which would violate the requirement that a valid 
registration represents a bona fide job offer. See proposed 8 CFR 
214.2(h)(10)(ii).
    DHS included the previously referenced example of reducing the 
proffered wage to an amount that would be equivalent to a lower wage 
level than that indicated on the original registration or petition in 
the text of proposed 8 CFR 214.2(h)(10)(iii) for illustrative purposes, 
but it is not the only scenario that could lead to a determination that 
a new or amended petition was part of the petitioner's attempt to 
unfairly increase the odds of selection during the selection process. 
Similarly, if the new or amended petition included the same proffered 
wage but changed the work location such that the proffered wage now 
corresponded to a lower OEWS wage level for the new location than the 
level indicated on the registration, USCIS could consider that change 
in determining whether the new or amended petition was part of the 
petitioner's attempt to unfairly increase the odds of selection. On the 
other hand, USCIS would not deny a new or amended petition solely on 
the basis of a different proffered wage or location if the wage 
continues to meet or exceed the same OEWS wage level as listed on the 
original petition. USCIS would consider the totality of the 
circumstances when determining whether to deny a new or amended 
petition filed in these scenarios.
    If the new or amended petition were already approved, the proposed 
regulation would similarly allow USCIS to revoke approval of such 
petition on notice if it determines that the filing of the petition is 
part of the petitioner's (or related entity's) attempt to unfairly 
increase the odds of selection during the registration or petition 
selection process, as applicable, such as by reducing the proffered 
wage to an amount that would be equivalent to a lower wage level than 
that indicated on the registration, or the original petition if the 
registration process was suspended. See proposed 8 CFR 
214.2(h)(11)(iii)(A)(8). USCIS would not, however, revoke approval 
solely based on a different proffered wage if that wage meets or 
exceeds the same corresponding OEWS wage level as listed on the 
original petition.
    Similar to how USCIS considers ``related entity'' for purposes of 
the bar on multiple cap-subject H-1B filings under 8 CFR 
214.2(h)(2)(i)(G), a ``related entity'' under proposed 8 CFR 
214.2(h)(10)(iii) and (11)(iii)(A) may include a parent company, 
subsidiary, or affiliate company, but would not be limited to only 
those companies that are legally related to the petitioner through 
corporate ownership and control. Some factors relevant to relatedness 
may include familial ties, proximity of locations, leadership 
structure, employment history, similar work assignments, and 
substantially similar supporting documentation. USCIS would consider 
the totality of the circumstances when determining whether a new or 
subsequent petitioner is a ``related entity.'' \48\
---------------------------------------------------------------------------

    \48\ See USCIS, Policy Memorandum, PM-602-0159, Matter of S- 
Inc., Adopted Decision 2018-02 (AAO Mar. 23, 2018).

---------------------------------------------------------------------------

[[Page 45996]]

F. Severability

    DHS is proposing that the provisions of this rule be severable from 
one another as well as severable from the registration requirement more 
broadly and the beneficiary-centric selection methodology. Should DHS 
issue a final rule based on this proposed rule, and after any such rule 
goes into effect, if any of the revisions of that final rule to 
provisions in 8 CFR 214.2(h)(8), (10), and (11) are found to be invalid 
or unenforceable by their terms or as applied to any person or 
circumstance, DHS intends that they should nevertheless be construed so 
as to continue to give the maximum effect to the provision(s) permitted 
by law, unless any such provision is held to be wholly invalid and 
unenforceable, in which event the revision(s) should be severed from 
the remainder of the provisions and the holding should not affect the 
other provisions or the application of those other provisions. For 
instance, the rule's provisions for weighting and selecting 
registrations are intended to be severable from the rule's provisions 
for weighting and selecting petitions. For example, if the rule is 
finalized as proposed, and the provisions pertaining to weighted 
selection of petitions (if the registration process is suspended) are 
enjoined or vacated, DHS intends for those provisions to be severable, 
to the greatest extent possible, from the provisions pertaining to 
weighted selection of registrations. Because these are alternative 
methods of selection, depending on whether registration is required or 
the registration process is suspended, the provisions pertaining to 
weighted selection of registrations can and would be administered 
independently from the provisions pertaining to weighted selection of 
petitions. Similarly, this rule's provisions for weighting and 
selecting registrations and petitions (as applicable) are intended to 
be severable from existing regulations on H-1B registration generally 
and beneficiary-centric registration in particular.
    Although DHS does not propose to codify a severability clause in 
the regulatory text, the Department wishes to emphasize its intent for 
the provisions of this rule to be severable. The absence of codified 
severability language is solely to avoid potential confusion within 8 
CFR 214.2, which governs a wide range of nonimmigrant classifications 
beyond the H-1B program and already contains multiple other 
severability provisions. The absence of a proposed severability 
provision in the regulatory text associated with this rulemaking is 
intended to maintain regulatory text that is more readable and 
streamlined, but it should not be taken to suggest that DHS's intent 
regarding severability is any different here than it would be in 
connection with a rule containing a severability clause.

IV. Statutory and Regulatory Requirements

A. Executive Orders 12866 (Regulatory Planning and Review), 13563 
(Improving Regulation and Regulatory Review), and 14192 (Unleashing 
Prosperity Through Deregulation)

    Executive Orders 12866 (Regulatory Planning and Review) and 13563 
(Improving Regulation and Regulatory Review) direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits. Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, of reducing costs, of harmonizing 
rules, and of promoting flexibility. Executive Order 14192 (Unleashing 
Prosperity Through Deregulation) directs agencies to significantly 
reduce the private expenditures required to comply with Federal 
regulations and provides that ``any new incremental costs associated 
with new regulations shall, to the extent permitted by law, be offset 
by the elimination of existing costs associated with at least 10 prior 
regulations.''
    This rule has been designated a ``significant regulatory action'' 
that is economically significant, under section 3(f)(1) of Executive 
Order 12866. Accordingly, the rule has been reviewed by the Office of 
Management and Budget.
    This rule is not an Executive Order 14192 regulatory action because 
it is being issued with respect to an immigration-related function of 
the United States. The rule's primary direct purpose is to implement or 
interpret the immigration laws of the United States (as described in 
INA sec. 101(a)(17), 8 U.S.C. 1101(a)(17)) or any other function 
performed by the U.S. Federal Government with respect to aliens. See 
OMB Memorandum M-25-20, ``Guidance Implementing Section 3 of Executive 
Order 14192, titled `Unleashing Prosperity Through Deregulation' '' 
(Mar. 26, 2025).
Summary of Changes
    As discussed in the preamble, the purpose of this NPRM is to amend 
DHS regulations governing the process by which USCIS selects H-1B 
registrations for filing of H-1B cap-subject petitions (or H-1B 
petitions for any year in which the registration requirement will be 
suspended), by implementing a process in which all unique 
beneficiaries, while still randomly selected, would be weighted 
generally according to the highest OEWS wage level that the proffered 
wage equals or exceeds for the relevant SOC code in the area(s) of 
intended employment. Specifically, USCIS would weight and select each 
unique beneficiary (or petition, if registration is suspended) as 
follows: a beneficiary (or petition) assigned to wage level IV would be 
entered into the selection pool four times, a beneficiary (or petition) 
assigned to wage level III would be entered into the selection pool 
three times, a beneficiary (or petition) assigned to wage level II 
would be entered into the selection pool two times, and a beneficiary 
(or petition) assigned to wage level I would be entered into the 
selection pool one time.
    For the 10-year implementation period of the rule (FY2026 through 
FY2035), DHS estimates the annual costs would be about $30 million. DHS 
estimates the annual net benefits (undiscounted) would be approximately 
$472 million in FY2026, $974 million in FY2027, $1,476 million in 
FY2028, and $1,978 million in each year from FY2029 through FY2035. DHS 
estimates the annualized net benefits of the rule would be about $1,642 
million at 3 percent and $1,594 million at 7 percent. DHS estimates the 
annual transfers (undiscounted) would be approximately $858 million in 
FY2026, $1,717 million in FY2027, $2,575 million in FY2028, and $3,434 
million in each year from FY2029 through FY2035. DHS estimates the 
annualized transfers of the rule would be about $2,859 million at 3 
percent and $2,778 million at 7 percent.
    Table 1 provides a detailed summary of estimated quantifiable and 
unquantifiable impacts of the proposed rule.

[[Page 45997]]



                             Table 1--Summary of Provisions and Impacts of the NPRM
----------------------------------------------------------------------------------------------------------------
                                 Description of the
    Proposed rule provisions      proposed  change       Estimated costs/transfers of      Estimated benefits of
                                    to provisions                 provisions                    provisions
----------------------------------------------------------------------------------------------------------------
1. Required Information on the   A registrant would  Quantitative: Petitioners--          Quantitative:
 Registration.                    be required to     [squ] DHS estimates proposed costs    Petitioners--
                                  select the box      would be $15 million due to the     [squ] None.
                                  for the highest     additional time burden associated   DHS/USCIS--
                                  OEWS wage level     with the registration tool.         [squ] None.
                                  that the           DHS/USCIS--                          Qualitative:
                                  beneficiary's      [squ] None.                           Petitioners--
                                  wage generally     Qualitative: Petitioners--           [squ] None.
                                  equals or exceeds  [squ] None.                          DHS/USCIS--
                                  and also would be  DHS/USCIS--                          [squ] Submission of
                                  required to        [squ] None.                           additional wage level
                                  provide the SOC                                          information, the SOC
                                  code for the                                             code, and area of
                                  proffered                                                intended employment
                                  position and the                                         on the electronic
                                  area of intended                                         registration form
                                  employment that                                          would allow USCIS to
                                  served as the                                            further improve the
                                  basis for the                                            integrity of the H-1B
                                  OEWS wage level                                          cap selection
                                  indicated on the                                         processes.
                                  registration.
2. Weighting and Selecting       DHS proposes to     Quantitative: Petitioners--          Quantitative:
 Registrations (or petitions if   implement a wage-  [squ] None.                           Petitioners and H-1B
 registration is suspended).      based selection    DHS/USCIS--                           Workers--
                                  process that       [squ] None.                          [squ] Total benefits
                                  would operate in   Qualitative: Petitioners--            of $502 million in
                                  conjunction with   [squ] None.                           FY2026, $1,004
                                  the existing       Transfer: H-1B workers.               million in FY2027,
                                  beneficiary-       [squ] Due to the proposed weighted    $1,506 million in
                                  centric selection   registration selection process,      FY2028, and $2,008
                                  process for         DHS estimates that $858 million of   million in each year
                                  registrations.      wages would be transferred from      from FY2029 through
                                  When there is       wage level I H-1B workers to         FY2035 estimated in
                                  random selection    higher wage level H-1B workers in    difference of wage
                                  USCIS would enter   FY2026, $1,717 million in FY2027,    paid to the higher
                                  each unique         $2,575 million in FY2028, and        wage level H-1B
                                  beneficiary (or     $3,434 million in each year from     workers.
                                  petition, as        FY2029 through FY2035. This         DHS/USCIS--
                                  applicable) into    transfer would be a cost to the     [squ] By engaging in a
                                  the selection       wage level I H-1B worker who would   wage-level-based
                                  pool in a           lose the wage associated with the    weighting of
                                  weighted manner:    H-1B registration. This transfer     registrations for
                                  a beneficiary (or   also would be a benefit to the       unique beneficiaries,
                                  petition)           higher wage level H-1B workers who   DHS would better
                                  assigned wage       would receive a wage associated      ensure that initial H-
                                  level IV would be   with the H-1B registration.          1B visas and status
                                  entered into the   Petitioners--                         grants would more
                                  selection pool     [squ] There would be an               likely go to the
                                  four times; level   unquantifiable trans-                higher skilled or
                                  III, three times;                                        higher paid
                                  level II, two                                            beneficiaries.
                                  times; and level                                         Facilitating the
                                  I, one time.                                             admission of higher
                                                                                           skilled workers
                                                                                           ``would benefit the
                                                                                           economy and increase
                                                                                           the United States'
                                                                                           competitive edge in
                                                                                           attracting the `best
                                                                                           and the brightest' in
                                                                                           the global labor
                                                                                           market,'' consistent
                                                                                           with the goals of the
                                                                                           H-1B program.
                                                                                          Qualitative:
                                                                                           Petitioners--
                                                                                          [squ] None.
                                                                                          DHS/USCIS--
                                                                                          [squ] None.
                                                         fer from the petitioners who
                                                         would hire wage level I H-1B
                                                         workers to the petitioners who
                                                         would hire workers at higher
                                                         wage levels. This transfer
                                                         would be a cost in terms of
                                                         lost producer surplus to the
                                                         petitioners who registered at
                                                         wage level I and were not
                                                         selected due to the proposed
                                                         changes. This transfer would be
                                                         an unquantifiable benefit in
                                                         terms of gained producer
                                                         surplus to the petitioners who
                                                         registered at higher wage
                                                         levels and got their H-1B
                                                         registrations selected due to
                                                         the higher probability of
                                                         getting selected.
                                                        [squ] There would also be an
                                                         unquantified transfer and
                                                         benefit from an increase in
                                                         state and federal payroll taxes
                                                         paid to the government by the
                                                         petitioner.
                                                     DHS/USCIS--
                                                     [squ] None.
3. Required Information on the   The information     Quantitative: Petitioners--          Quantitative:
 Petition.                        required for the   [squ] DHS estimates this proposed     Petitioners--
                                  registration        cost would be $15 million due to    [squ] None.
                                  process would       the additional time burden          DHS/USCIS--
                                  also be collected   associated with filing the H-1B     [squ] None.
                                  on the petition.    petition.                           Qualitative:
                                  Petitioners would  DHS/USCIS--                           Petitioners--
                                  be required to     [squ] None.                          [squ] None
                                  submit evidence    Qualitative: Petitioners--           DHS/USCIS--
                                  of the basis of    [squ] None.                          [squ] Submission of
                                  the wage level     DHS/USCIS--                           additional
                                  selected on the    [squ] None.                           information on the
                                  registration as                                          petition form
                                  of the date that                                         (including wage level
                                  the registration                                         information and the
                                  underlying the                                           SOC code), and
                                  petition was                                             evidence of the basis
                                  submitted.                                               of the wage level
                                                                                           selected, would allow
                                                                                           USCIS to further
                                                                                           improve the integrity
                                                                                           of the H-1B cap
                                                                                           selection and
                                                                                           adjudication
                                                                                           processes.

[[Page 45998]]

 
4. Process Integrity...........  The proposed rule   Quantitative: Petitioners--          Quantitative:
                                  would require an   [squ] None.                           Petitioners--
                                  H-1B petition      DHS/USCIS--                          [squ] None.
                                  filed after        [squ] None.                          DHS/USCIS--
                                  registration       Qualitative: Petitioners--           [squ] None.
                                  selection to       [squ] DHS estimates that the         Qualitative:
                                  contain and be      proposed rule could lead to an       Petitioners--
                                  supported by the    increase in the number of denials   [squ] None.
                                  same identifying    or revocations of H-1B petitions.   DHS/USCIS--
                                  information and    DHS/USCIS--                          [squ] These proposed
                                  position           [squ] None.                           changes would lead to
                                  information                                              improved program
                                  including OEWS                                           integrity for USCIS.
                                  wage level, SOC
                                  code, and area of
                                  intended
                                  employment
                                  provided in the
                                  selected
                                  registration and
                                  indicated on the
                                  LCA used to
                                  support the
                                  petition. The
                                  proposed rule
                                  would also allow
                                  USCIS to deny a
                                  subsequent new or
                                  amended petition
                                  or revoke an
                                  approved petition
                                  if USCIS were to
                                  determine that
                                  the filing of the
                                  new or amended
                                  petition was part
                                  of the
                                  petitioner's
                                  attempt to
                                  unfairly increase
                                  odds of selection
                                  during the
                                  registration
                                  selection process.
----------------------------------------------------------------------------------------------------------------

    In addition to the impacts summarized in Table 1, and as required 
by OMB Circular A-4, Table 2 presents the prepared accounting statement 
showing the costs and benefits that would result in this proposed 
rule.\49\
---------------------------------------------------------------------------

    \49\ OMB, ``Circular A-4'' (Sept. 17, 2003), 
<a href="http://trumpwhitehouse.archives.gov/sites/whitehouse.gov/files/omb/circulars/A4/a-4.pdf">trumpwhitehouse.archives.gov/sites/whitehouse.gov/files/omb/circulars/A4/a-4.pdf</a> (last visited Aug. 1, 2025).

                                      Table 2--OMB A-4 Accounting Statement
                                             [$ millions, FY 2023 *]
                                      Time Period: FY 2026 through FY 2035.
----------------------------------------------------------------------------------------------------------------
            Category               Primary estimate    Minimum estimate    Maximum estimate     Source citation
----------------------------------------------------------------------------------------------------------------
                                                    BENEFITS
----------------------------------------------------------------------------------------------------------------
Annualized Monetized Benefits at                            $1,672                            Regulatory impact
 3%.                                                                                           analysis (RIA).
----------------------------------------------------------------------------------------------------------------
Annualized Monetized Benefits at                            $1,625                            RIA.
 7%.
----------------------------------------------------------------------------------------------------------------
Annualized quantified, but                                    N/A                             RIA.
 unmonetized, benefits.
----------------------------------------------------------------------------------------------------------------
Qualitative (unquantified)        --Submission of additional wage level information, the SOC  RIA.
 Benefits.                         code, and area of intended employment on the electronic
                                   registration form would allow USCIS to further improve
                                   the integrity of the H-1B cap selection processes.
                                  --By engaging in a wage-level-based weighting of
                                   registrations for unique beneficiaries, DHS would better
                                   ensure that initial H-1B visas and status grants would
                                   more likely go to the higher skilled or higher paid
                                   beneficiaries. Facilitating the admission of higher--
                                   skilled workers ``would benefit the economy and increase
                                   the United States' competitive edge in attracting the
                                   `best and the brightest' in the global labor market,''
                                   consistent with the goals of the H-1B program.
                                  --The increased wages would also provide an increase in
                                   payroll taxes paid to the state and federal government.
----------------------------------------------------------------------------------------------------------------
                                                      COSTS
----------------------------------------------------------------------------------------------------------------
Annualized monetized costs at 3%                              $30                             RIA.
---------------------------------------------------------------------------------------------
Annualized monetized costs at 7%                              $30
----------------------------------------------------------------------------------------------------------------
Annualized quantified, but                                    N/A                             RIA.
 unmonetized, costs.
----------------------------------------------------------------------------------------------------------------
Qualitative (unquantified) costs  --DHS estimates that the proposed rule could lead to an     RIA.
                                   increase in the number of denials or revocations of H-1B
                                   petitions.
----------------------------------------------------------------------------------------------------------------
                                                    TRANSFERS
----------------------------------------------------------------------------------------------------------------
Annualized monetized transfers                              $2,859                            RIA.
 at 3%.
----------------------------------------------------------------------------------------------------------------
Annualized monetized transfers                              $2,778                            RIA.
 at 7%.
----------------------------------------------------------------------------------------------------------------

[[Page 45999]]

 
From/To.........................  From wage level I H-1B workers and petitioners to wage      RIA.
                                   level II, III, and IV H-1B workers and petitioners.
----------------------------------------------------------------------------------------------------------------
Annualized unquantified                                       N/A                             RIA.
 monetized transfers.
----------------------------------------------------------------------------------------------------------------
Qualitative (unquantified)        There would be an unquantifiable transfer from the          RIA.
 transfers.                        petitioners who would hire wage level I H-1B workers to
                                   the petitioners who would hire workers at higher wage
                                   levels in terms of producer surplus. This transfer would
                                   be a cost in terms of lost producer surplus to the
                                   petitioners who registered at wage level I and were not
                                   selected due to the proposed changes. This transfer would
                                   be an unquantifiable benefit in terms of gained producer
                                   surplus to the petitioners who registered at higher wage
                                   levels and got their H-1B registrations selected due to
                                   the higher probability of getting selected.
----------------------------------------------------------------------------------------------------------------
From/To.........................  From wage level I H-1B petitioners to wage level II, III,   RIA.
                                   and IV H-1B petitioners.
----------------------------------------------------------------------------------------------------------------
Effects on State, local, or                                   N/A                             RIA.
 tribal governments.
----------------------------------------------------------------------------------------------------------------
Effects on small businesses.....  DHS estimates that the proposed rule would result in a      Regulatory
                                   significant economic impact on 5,193 small entities (30     Flexibility Act
                                   percent of small entities that filed a cap-subject          (RFA) analysis.
                                   petition in FY 2024) due to loss of labor.
----------------------------------------------------------------------------------------------------------------
Effects on wages................                              N/A                             RIA.
----------------------------------------------------------------------------------------------------------------
Effects on growth...............                              N/A                             RIA.
----------------------------------------------------------------------------------------------------------------
* Note that costs are measured in FY 2023 dollars using U.S. Bureau of Labor Statistics (BLS) wages, but
  benefits and transfers are measured in average of FY 2023 and FY 2024 dollars using filed LCA wages.

Background and Population
    The H-1B nonimmigrant visa program allows U.S. employers to 
temporarily hire foreign workers to perform services in a specialty 
occupation, services related to a DOD cooperative research and 
development project or coproduction project, or services of 
distinguished merit and ability in the field of fashion modeling.\50\ A 
specialty occupation is defined as an occupation that requires the (1) 
theoretical and practical application of a body of highly specialized 
knowledge and (2) attainment of a bachelor's or higher degree in the 
specific specialty (or its equivalent) as a minimum qualification for 
entry into the occupation in the United States.\51\
---------------------------------------------------------------------------

    \50\ See INA sec. 101(a)(15)(H)(i)(b), 8 U.S.C. 
1101(a)(15)(H)(i)(b); Immigration Act of 1990, Public Law 101-649, 
sec. 222(a)(2), 104 Stat. 4978 (Nov. 29, 1990); 8 CFR 214.2(h).
    \51\ See INA sec. 214(i)(l), 8 U.S.C. 1184(i)(l).
---------------------------------------------------------------------------

    The number of aliens who may be issued initial H-1B visas or 
otherwise provided initial H-1B nonimmigrant status during any fiscal 
year has been capped at various levels by Congress over time, with the 
current numerical limit being 65,000 per fiscal year.\52\ Congress has 
also provided for various exemptions from this annual numerical limit, 
including an exemption for 20,000 aliens who have earned a master's or 
higher degree from a U.S. institution of higher education.\53\
---------------------------------------------------------------------------

    \52\ See INA sec. 214(g)(1)(A), 8 U.S.C. 1184(g)(1)(A).
    \53\ See INA sec. 214(g)(5) and (7), 8 U.S.C. 1184(g)(5) and 
(7). See more detailed information on cap exemptions in Footnote 4.
---------------------------------------------------------------------------

    Under the current regulation, all petitioners seeking to file an H-
1B cap-subject petition must first electronically submit a registration 
for each beneficiary on whose behalf they seek to file an H-1B cap-
subject petition, unless USCIS suspends the registration 
requirement.\54\ USCIS monitors the number of H-1B registrations for 
unique beneficiaries properly submitted during the announced 
registration period of at least 14 days. At the conclusion of that 
period, if more registrations for unique beneficiaries are submitted 
than projected as needed to reach the numerical allocations, USCIS 
randomly selects from among unique beneficiaries for whom registrations 
were properly submitted, the number of unique beneficiaries projected 
as needed to reach the H-1B numerical allocations.\55\ Under this 
random H-1B registration selection process, USCIS first selects from a 
pool of all unique beneficiaries, including those eligible for the 
advanced degree exemption. USCIS then selects from the remaining unique 
beneficiaries a sufficient number projected as needed to reach the 
advanced degree exemption. A prospective petitioner that properly 
registered for a beneficiary who is selected is notified of the 
selection and instructed that the petitioner is eligible to file an H-
1B cap-subject petition for the beneficiary named in the selected 
registration within a filing period that is at least 90 days in 
duration.\56\ When registration is required, a petitioner seeking to 
file an H-1B cap-subject petition is not eligible to file the petition 
unless the petition is based on a valid, selected registration for the 
beneficiary named in the petition.\57\
---------------------------------------------------------------------------

    \54\ See 8 CFR 214.2(h)(8)(iii)(A).
    \55\ See 8 CFR 214.2(h)(8)(iii)(A)(5) and (6).
    \56\ See 8 CFR 214.2(h)(8)(iii)(D)(3).
    \57\ See 8 CFR 214.2(h)(8)(iii)(A)(1).
---------------------------------------------------------------------------

    In general, prior to filing an H-1B petition, the employer is 
required to obtain a certified LCA from the DOL.\58\ The LCA collects 
information about the employer and the occupation for the H-1B 
worker(s). The LCA requires certain attestations from the employer, 
including, among others, that the employer will pay the H-1B worker(s) 
at least the required wage.\59\
---------------------------------------------------------------------------

    \58\ See 8 CFR 214.2(h)(4)(i)(B).
    \59\ See 20 CFR 655.731 through 655.735.
---------------------------------------------------------------------------

    This proposed rule would amend DHS regulations concerning the 
selection of electronic registrations submitted by or on behalf of 
prospective petitioners seeking to file H-1B cap-subject petitions (or 
the selection of petitions, if the registration process is suspended), 
which includes petitions subject to the regular cap and those asserting 
eligibility for the advanced degree exemption, to allow for

[[Page 46000]]

weighting and selection generally based on OEWS wage levels for 
simultaneously submitted registrations (including registrations 
submitted within the same window of time). When applicable, USCIS would 
weight and select the registrations for unique beneficiaries (or 
petitions) received generally based on the highest OEWS wage level that 
the beneficiary's proffered wage would equal or exceed for the relevant 
SOC code and in the area(s) of intended employment. Although the 
allocation of regular cap (65,000) slots and advanced degree exemption 
(20,000) slots are approximately 75 percent and 25 percent 
respectively, the multiple-stage random selection process results in an 
increased probability that H-1B beneficiaries with a qualifying 
master's degree or higher will be selected.
    Table 3 shows the number of registrations received for 
beneficiaries without a qualifying master's degree (Non-master's), and 
with a qualifying master's degree or above (Master's or higher) for FY 
2020 through FY 2024.\60\ Table 3 includes the number of unique 
beneficiaries because DHS implemented a beneficiary-centric selection 
process for H-1B registrations in FY 2024, which is when USCIS started 
selecting registrations by unique beneficiary instead of selecting by 
registration. 89 FR 7456 (Feb. 2, 2024). Based on a 5-year annual 
average, DHS estimates the annual average receipts of registrations to 
be 465,523. The 5-year annual average of registrations received for 
non-master's is 299,935, the 5-year annual average of registrations 
received for master's or higher is 165,587, and the 5-year annual 
average of number of unique beneficiaries with eligible registrations 
is 320,711.
---------------------------------------------------------------------------

    \60\ The terms ``Non-master's'' and ``Master's or higher'' used 
in this analysis refer to the beneficiary's degree type, not which 
cap type they were selected under.

                       Table 3--Form I-129, H-1B Registrations for FY 2020 Through FY 2024
----------------------------------------------------------------------------------------------------------------
                                                Number of                                      Number of unique
                                           registrations (non-                    Master's   beneficiaries--with
               Fiscal year                 master's + master's    Non-master's    or higher        eligible
                                                or higher)                                      registrations
----------------------------------------------------------------------------------------------------------------
2020....................................                274,237         148,142     126,095            118,026
2021....................................                308,613         161,820     146,793            235,435
2022....................................                483,927         334,360     149,567            356,633
2023....................................                780,884         529,530     251,354            450,354
2024....................................                479,953         325,825     154,128            443,108
                                         -----------------------------------------------------------------------
    5-Year Total........................              2,327,614       1,499,677     827,937          1,603,556
                                         -----------------------------------------------------------------------
    5-Year Average......................                465,523         299,935     165,587            320,711
----------------------------------------------------------------------------------------------------------------
Source: USCIS OPQ, Benefits Hub, queried 3/2025, TRK #17347.
Registrations submitted in each fiscal year are for the beneficiaries to begin work as an H-1B nonimmigrant the
  following fiscal year. Cap-subject petitions filed in each fiscal year are generally for the beneficiaries to
  begin work as H-1B nonimmigrants the following fiscal year.

    Table 4 shows the number of H-1B cap-subject petitions (Form I-129, 
Petition for Nonimmigrant Worker) received for non-master's and 
master's or higher as well as historical Form G-28 filings by attorneys 
or accredited representatives accompanying H-1B cap-subject petitions 
for FY 2020 through FY 2024. DHS notes that these forms are not 
mutually exclusive. Based on the 5-year average, DHS estimates 80 
percent of H-1B cap-subject petitions would be filed with Form G-
28.\61\ Although the advanced degree exemption cap is 20,000, there are 
more petitions for beneficiaries with master's or higher degrees than 
20,000 because some beneficiaries with master's or higher degrees are 
selected during the regular cap selection process.\62\
---------------------------------------------------------------------------

    \61\ Calculation: 75,633 5-Year Average Forms G-28 / 94,900 5-
Year Average Form I-129 petitions = 80 percent.
    \62\ See 8 CFR 214.2(h)(8)(iii)(A)(5).

                    Table 4--H-1B Cap-Subject Petitions Received for FY 2020 Through FY 2024
----------------------------------------------------------------------------------------------------------------
                                                 H-1B cap-subject
                                                petitions received                    Master's      Number of
                 Fiscal year                     (non-master's +      Non-master's    or higher  petitions filed
                                               master's or higher)                                with form G-28
----------------------------------------------------------------------------------------------------------------
2020........................................                100,498          40,740      59,758           82,099
2021........................................                 90,104          40,641      49,463           72,636
2022........................................                 94,702          51,046      43,656           74,373
2023........................................                 92,830          50,533      42,297           73,751
2024........................................                 96,367          48,933      47,434           75,306
                                             -------------------------------------------------------------------
    5-Year Total............................                474,501         231,893     242,608          378,165
                                             -------------------------------------------------------------------
    5-Year Average..........................                 94,900          46,379      48,522           75,633
----------------------------------------------------------------------------------------------------------------
Source: USCIS OPQ, CLAIMS3 and ELIS, queried 3/2025, TRK #17265. Form G-28 data from USCIS OPS, PRD, CLAIMS3 and
  ELIS, queried 3/2025.


[[Page 46001]]

    In this analysis, DHS uses historical data of both registrations 
and received petitions to estimate the future registration and petition 
population. Specifically, DHS uses 5-year averages to estimate the 
number of registrations and H-1B cap-subject petitions received 
annually.
Costs, Transfers, and Benefits of the Proposed Rule
Required Information on the Registration
    For purposes of the weighting and selection process proposed in 
this rulemaking, a registrant would be required to select the box for 
the highest OEWS wage level (``wage level IV,'' ``wage level III,'' 
``wage level II,'' or ``wage level I'') that the beneficiary's 
proffered wage generally equals or exceeds for the relevant SOC code in 
the area(s) of intended employment. See proposed 8 CFR 
214.2(h)(8)(iii)(A)(4)(i). The registrant would also be required to 
provide the appropriate SOC code of the proffered position and the area 
of intended employment that served as the basis for the OEWS wage level 
indicated on the registration, in addition to any other information 
required on the electronic registration form (and on the H-1B petition) 
as specified in the registration form instructions.
    For registrants relying on a prevailing wage that is not based on 
the OEWS survey, if the proffered wage were less than the corresponding 
level I OEWS wage, the registrant would select the ``wage level I'' box 
on the registration form. See proposed 8 CFR 214.2(h)(8)(iii)(A)(4)(i). 
If the proffered wage is expressed as a range, the registrant would 
select the OEWS wage level that the lowest wage in the range will equal 
or exceed. If the H-1B beneficiary would work in multiple locations, or 
in multiple positions if the registrant is an agent, the registrant 
would select the box for the lowest equivalent wage level among the 
corresponding wage levels for each of those locations or each of those 
positions and would list the location corresponding to that lowest 
equivalent wage level as the area of intended employment.\63\ The 
proposal to require a registrant to select the lowest among the 
corresponding wage levels if a beneficiary would work in multiple 
locations, or in multiple positions if the registrant is an agent, is 
meant to prevent gaming of the weighted selection process.\64\
---------------------------------------------------------------------------

    \63\ Providing the area of intended employment that corresponds 
to the lowest equivalent wage level at registration would not 
preclude the registrant, if selected and eligible to file a 
petition, from listing any additional concurrent work location(s) on 
the petition.
    \64\ For instance, in the case of multiple positions, if DHS 
were to instead require registrants to select the box for the 
highest corresponding OEWS wage level that the proffered wage were 
to equal or exceed, then a petitioner could place the beneficiary in 
a lower paying position for most of the time and a higher paying 
position for only a small percent of the time, but use that higher 
paying position to increase their chances of being selected in the 
registration process. Similarly, in the case of multiple locations, 
a petitioner could place the beneficiary in a higher paying locality 
for only a small percent of time but use that higher paying locality 
to increase their chances of being selected in the registration 
process.
---------------------------------------------------------------------------

    DHS recognizes that some occupations do not have current OEWS 
prevailing wage information available on DOL's OFLC Wage Search 
website.\65\ In the limited instance where there is no current OEWS 
prevailing wage information for the proffered position, such that there 
are not four wage levels for the occupational classification or there 
are not wage data for the area of intended employment, the registrant 
would follow DOL guidance on PWDs to determine which OEWS wage level to 
select on the registration.\66\ DHS expects each registrant would be 
able to identify the appropriate SOC code for the proffered position 
because all petitioners are required to identify the appropriate SOC 
code for the proffered position on the LCA, even when there are no 
applicable wage level data available or the OEWS survey is not used as 
the prevailing wage source on the LCA. Using the SOC code and the 
previously mentioned DOL guidance, all registrants would be able to 
determine the appropriate OEWS wage level for purposes of completing 
the registration, regardless of whether they were to specify an OEWS 
wage level or utilize the OEWS program as the prevailing wage source on 
an LCA.
---------------------------------------------------------------------------

    \65\ OFLC, a component of DOL, administers the OFLC Wage Search 
for OEWS prevailing wage information at <a href="https://flag.dol.gov/wage-data/wage-search">https://flag.dol.gov/wage-data/wage-search</a> (last visited Apr. 11, 2025).
    \66\ DOL, ETA, ``Prevailing Wage Determination Policy Guidance: 
Nonagricultural Immigration Programs'' (revised Nov. 2009), <a href="https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf">https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf</a>.
---------------------------------------------------------------------------

    This proposed change would add additional requirements for 
registrants. DHS estimates that this change would increase the time 
burden by 20 minutes for each registration (0.3333 hours) from 36 
minutes (0.6 hours) to 56 minutes (0.9333 hours). The proposed change 
would offer qualitative benefits. Specifically, submission of 
additional wage level information and the SOC code on both an 
electronic registration and on Form I-129 would result in the benefit 
of allowing USCIS to further improve the integrity of the H-1B cap 
selection and adjudication processes.
    Table 5 shows the number of total registrations and estimated total 
registrations with Form G-28 attached. Based on a 5-year annual 
average, DHS estimates the annual average registrations are 465,523. 
The estimated 5-year annual average of registrations with Form G-28 
attached is 180,970.

                               Table 5--Form I-129, H-1B Registrations and Attached Form G-28 for FY 2020 Through FY 2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Percentage of
                                                                   Total        Total eligible      Eligible          eligible         Estimated total
                         Fiscal year                           registrations    registrations     registrations     registrations    registrations with
                                                                                                 with Form G-28    with Form G-28        Form G-28 *
                                                                          (A)              (B)               (C)             (B/C)             (A x B/C)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2020........................................................          274,237          269,424            74,356                28                75,684
2021........................................................          308,613          301,447           147,350                49               150,853
2022........................................................          483,927          474,421           205,335                43               209,449
2023........................................................          780,884          758,994           249,579                33               256,777
2024........................................................          479,953          470,342           207,634                44               211,877
                                                             -------------------------------------------------------------------------------------------
    5-Year Total............................................        2,327,614        2,274,628           884,254                39               904,852
                                                             -------------------------------------------------------------------------------------------
    5-Year Average..........................................          465,523          454,926           176,851                39               180,970
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: USCIS OPQ, Benefits Hub, queried 3/2025, TRK #17518.

[[Page 46002]]

 
* Estimated Total Registrations with Form G-28 is estimated using the Percentage of Eligible Registrations with Form G-28 and Total Registrations.

    DHS estimates the opportunity cost of time of gathering and 
preparing information by multiplying the estimated increased time 
burden for those submitting an H-1B registration by the compensation 
rate of a human resources (HR) specialist, in-house lawyer, or 
outsourced lawyer, respectively.
    In order to estimate the opportunity cost of time for completing 
and submitting an H-1B registration, DHS assumes that a prospective 
petitioner would use an HR specialist, an in-house lawyer, or an 
outsourced lawyer to prepare an H-1B registration.\67\ DHS uses the 
mean hourly wage of $36.57 for HR specialists to estimate the 
opportunity cost of the time for preparing and submitting an H-1B 
registration.\68\ Additionally, DHS uses the mean hourly wage of $84.84 
for in-house lawyers to estimate the opportunity cost of the time for 
preparing and submitting an H-1B registration.\69\
---------------------------------------------------------------------------

    \67\ DHS limited its analysis to HR specialists, in-house 
lawyers, and outsourced lawyers to present estimated costs. However, 
DHS understands that not all entities employ individuals with these 
occupations and, therefore, recognizes equivalent occupations may 
also prepare and submit these registrations.
    \68\ See BLS, ``Occupational Employment and Wage Statistics, 
Occupational Employment and Wages, May 2023, 13-1071 Human Resources 
Specialists,'' <a href="https://www.bls.gov/oes/2023/may/oes131071.htm">https://www.bls.gov/oes/2023/may/oes131071.htm</a> (last 
updated Apr. 3, 2024).
    \69\ See DOL, BLS, ``Occupational Employment and Wage 
Statistics, Occupational Employment and Wages, May 2023, 23-1011 
Lawyers,'' <a href="https://www.bls.gov/oes/2023/may/oes231011.htm">https://www.bls.gov/oes/2023/may/oes231011.htm</a> (last 
updated Apr. 3, 2024).
---------------------------------------------------------------------------

    DHS accounts for worker benefits when estimating the total costs of 
compensation by calculating a benefits-to-wage multiplier using the BLS 
report detailing the average employer costs for employee compensation 
for all civilian workers in major occupational groups and industries. 
DHS estimates that the benefits-to-wage multiplier is 1.45 and, 
therefore, is able to estimate the full opportunity cost per 
registration, including employee wages and salaries and the full cost 
of benefits, such as paid leave, insurance, retirement, etc.\70\ DHS 
multiplied the average hourly U.S. wage rate for HR specialists and in-
house lawyers by 1.45 to account for the full cost of employee 
benefits, for a total of $53.03 per hour for an HR specialist \71\ and 
$123.02 per hour for an in-house lawyer.\72\ DHS recognizes that a firm 
may choose, but is not required, to outsource the preparation of these 
registrations and, therefore, presents two wage rates for lawyers. To 
determine the full opportunity costs of time if a firm hired an 
outsourced lawyer, DHS multiplied the average hourly U.S. wage rate for 
lawyers by 2.5 for a total of $212.10 to approximate an hourly cost for 
an outsourced lawyer to prepare and submit an H-1B registration.\73\
---------------------------------------------------------------------------

    \70\ The benefits-to-wage multiplier is calculated as follows: 
(Total Employee Compensation per hour) / (Wages and Salaries per 
hour) = ($45.42 Total Employee Compensation per hour) / ($31.29 
Wages and Salaries per hour) = 1.45158 = 1.45 (rounded). See BLS, 
Economic News Release, ``Employer Costs for Employee Compensation--
December 2023,'' Table 1. Employer Costs for Employee Compensation 
by ownership [Dec. 2023], <a href="https://www.bls.gov/news.release/archives/ecec_03132024.htm">https://www.bls.gov/news.release/archives/ecec_03132024.htm</a> (last updated Mar. 13, 2024). The Employer Costs 
for Employee Compensation measures the average cost to employers for 
wages and salaries and benefits per employee hour worked.
    \71\ Calculation: $36.57 x 1.45 = $53.03 total wage rate for HR 
specialist.
    \72\ Calculation: $84.84 x 1.45 = $123.02 total wage rate for 
in-house lawyer.
    \73\ Calculation: $84.84 x 2.5 = $212.10 total wage rate for an 
outsourced lawyer.
    The DHS analysis in Exercise of Time-Limited Authority to 
Increase the Fiscal Year 2018 Numerical Limitation for the H-2B 
Temporary Nonagricultural Worker Program, 83 FR 24905 (May 31, 
2018), used a multiplier of 2.5 to convert in-house attorney wages 
to the cost of outsourced attorney wages.
    The U.S. Immigration and Customs Enforcement rule ``Final Small 
Entity Impact Analysis: `Safe-Harbor Procedures for Employers Who 
Receive a No-Match Letter''' at G-4 (Aug. 25, 2008), <a href="https://www.regulations.gov/document/ICEB-2006-0004-0922">https://www.regulations.gov/document/ICEB-2006-0004-0922</a>, also used a 
multiplier of 2.5 to convert in-house attorney wages to the cost of 
outsourced attorney based on information received in public comment 
to that rule. The methodology used in that analysis remains sound 
for using 2.5 as a multiplier for outsourced labor wages in this 
rule.
---------------------------------------------------------------------------

    DHS does not know the exact number of registrants who will choose 
an in-house or an outsourced lawyer but assumes it may be a 50/50 split 
and, therefore, provides an average. The estimated number of 
registrations with Form G-28 attached is 180,970 from Table 5. Table 6 
shows the current total annual average cost for a lawyer to complete 
the registration on behalf of a prospective petitioner. The current 
opportunity cost of time for submitting an H-1B registration using an 
attorney or other representative is estimated to range from $13,357,758 
to $23,030,242, with an average of $18,194,000.

Table 6--Current Average Opportunity Costs of Time for Submitting an H-1B Registration With an Attorney or Other
                                                 Representative
----------------------------------------------------------------------------------------------------------------
                                                           Time burden to
                                          Population       complete H-1B                         Total current
                                      submitting with a     registration       Cost of time     opportunity cost
                                            lawyer            (hours)
                                                      A                  B                  C    D = (A x B x C)
----------------------------------------------------------------------------------------------------------------
In-house lawyer.....................            180,970                0.6            $123.02        $13,357,758
Outsourced lawyer...................            180,970                0.6             212.10         23,030,242
                                     ---------------------------------------------------------------------------
    Average.........................  .................  .................  .................         18,194,000
----------------------------------------------------------------------------------------------------------------
Source: USCIS analysis.

    To estimate the current remaining opportunity cost of time for an 
HR specialist submitting an H-1B registration without a lawyer, DHS 
applies the estimated public reporting time burden (0.6 hours) to the 
compensation rate of an HR specialist. Table 7 estimates the current 
total annual opportunity cost of time to HR specialists completing and 
submitting an H-1B registration would be approximately $9,053,907.

[[Page 46003]]



 Table 7--Current Average Opportunity Costs of Time for Submitting an H-1B Registration, Without an Attorney or
                                            Accredited Representative
----------------------------------------------------------------------------------------------------------------
                                                        Time burden to
                                                         complete H-1b      HR specialist's    Total opportunity
                                      Population         registration      opportunity cost      cost of time
                                                            (hours)             of time
                                                  A                   B                    C      D = (A x B x C)
----------------------------------------------------------------------------------------------------------------
Estimate of H-1B Registrations..            284,553                 0.6              $53.03          $9,053,907
----------------------------------------------------------------------------------------------------------------
Source: USCIS analysis. Note that 284,553 = 465,523 (number of total registrations)-180,970 (number of
  registrations filed by lawyers) from Table 5.

    Table 8 shows the final estimated time burden would increase by 20 
minutes (0.3333 hours) to 56 minutes (0.9333 hours) to the eligible 
population and compensation rates of those who may submit registrations 
with or without a lawyer due to changes in the instructions, adding 
clarifying language regarding denying or revoking approved H-1B 
petitions, adding passport or travel document instructional language, 
and providing the corresponding wage level, the appropriate SOC code of 
the proffered position, and the area of intended employment that served 
as the basis for the OEWS wage level indicated on the registration. DHS 
does not know the exact number of registrants who would choose an in-
house or an outsourced lawyer but assumes it may be a 50/50 split and 
therefore provides an average. DHS estimates that these current 
opportunity costs of time for submitting an H-1B registration using an 
attorney or other representative would range from $20,777,992 to 
$35,823,542, with an average of $28,300,767.

   Table 8--New Opportunity Costs of Time for an H-1B Registration, Registrants Submitting With an Attorney or
                                              Other Representative
----------------------------------------------------------------------------------------------------------------
                                        Population of      Time burden to
                                         registrants       complete H-1B                       Total opportunity
                                      submitting with a     registration       Cost of time           cost
                                            lawyer            (hours)
                                                      A                  B                  C    D = (A x B x C)
----------------------------------------------------------------------------------------------------------------
In House Lawyer.....................            180,970             0.9333            $123.02        $20,777,992
Outsourced Lawyer...................            180,970             0.9333             212.10         35,823,542
                                     ---------------------------------------------------------------------------
    Average.........................  .................  .................  .................         28,300,767
----------------------------------------------------------------------------------------------------------------
Source: USCIS analysis.

    To estimate the current remaining opportunity cost of time for an 
HR specialist submitting an H-1B registration without a lawyer, DHS 
applies the final estimated public reporting time burden (0.9333 hours) 
to the compensation rate of an HR specialist. Table 9 estimates the 
current total annual opportunity cost of time to HR specialists 
completing and submitting the H-1B registration would be approximately 
$14,083,353.

  Table 9--Final Average Opportunity Costs of Time for an H-1B Registration, Submitting Without an Attorney or
                                            Accredited Representative
----------------------------------------------------------------------------------------------------------------
                                                        Time burden to      HR specialist's
                                                         complete H-1B     opportunity cost    Total opportunity
                                      Population         registration      of time ($48.40/      cost of time
                                                            (hours)              hr.)
                                                  A                   B                    C      D = (A x B x C)
----------------------------------------------------------------------------------------------------------------
Estimate H-1B Registration......            284,553              0.9333              $53.03         $14,083,353
----------------------------------------------------------------------------------------------------------------
Source: USCIS analysis.

    DHS estimates the total additional annual cost for attorneys and HR 
specialists to complete and submit H-1B registrations would be 
approximately $15,136,213 as shown in Table 10. This table shows the 
current total opportunity cost of time to submit an H-1B registration 
and the final total opportunity cost of time.

         Table 10--Total Costs to Complete the H-1B Registration
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Average Current Opportunity Cost Time for Lawyers to         $18,194,000
 Complete the H-1B Registration.........................
Average Current Opportunity Cost Time for HR Specialist        9,053,907
 to Complete the H-1B Registration......................
                                                         ---------------
    Total (A)...........................................      27,247,907

[[Page 46004]]

 
Average Final Opportunity Cost Time for Lawyers to            28,300,767
 Complete the H-1B Registration.........................
Average Final Opportunity Cost Time for HR Specialist to      14,083,353
 Complete the H-1B Registration.........................
                                                         ---------------
    Total (B)...........................................      42,384,120
                                                         ---------------
        Final Additional Opportunity Costs of Time to         15,136,213
         Complete the H-1B Registration (Total (B) minus
         Total (A)).....................................
------------------------------------------------------------------------
Source: USCIS analysis.

Weighting and Selecting Registrations
    In the current selection process for H-1B registrations, USCIS 
randomly selects from among properly submitted registrations the number 
of unique beneficiaries projected as needed to reach the H-1B numerical 
allocations. This proposed rule would change the way USCIS selects 
unique beneficiaries, and the registrations submitted on their behalf 
for H-1B cap-subject petitions (or petitions, if the registration 
process is suspended), including those eligible for the advanced degree 
exemption. As proposed, USCIS would weight and select the registrations 
for unique beneficiaries (or petitions) received generally on the basis 
of the highest OEWS wage level that the beneficiary's proffered wage 
would equal or exceed for the relevant SOC code in the area(s) of 
intended employment. The proposed changes to weight and select 
registrations would result in the benefit of increasing the chance that 
registrations or petitions, as applicable, would be selected for higher 
paid, and presumably higher skilled or higher-valued, beneficiaries.
    Congress has established the limits on certain initial H-1B 
nonimmigrant visas or status grants each fiscal year not to exceed 
65,000 (regular cap) with an annual exemption for those who have earned 
a qualifying U.S. master's degree or higher from a U.S. institution of 
higher education not to exceed 20,000 (advanced degree exemption). 
USCIS monitors the number of H-1B registrations for unique 
beneficiaries it receives during the announced registration period. At 
the conclusion of the registration period, USCIS randomly selects from 
among properly submitted registrations a number of registrations for 
unique beneficiaries projected as needed to reach the H-1B numerical 
allocations. Although the allocation of regular cap (65,000) and 
advanced degree exemption (20,000) are approximately 75 percent and 25 
percent respectively, the multiple-stage random selection process 
results in an increased probability that H-1B beneficiaries with a 
master's degree or higher will be selected. Table 11 shows the 
historical numbers of H-1B cap-subject petitions received by wage level 
and by the beneficiary's degree type for FY 2020 through FY 2024. Based 
on the 5-year annual average, DHS estimates the annual average receipts 
of H-1B cap-subject petitions are 94,900 per year. The 5-year annual 
average of non-master's degree receipts is 46,379, and the 5-year 
annual average of master's or higher degree receipts is 48,522.

                           Table 11--Form I-129, H-1B Cap-Subject Petition Received by Wage Level for FY 2020 Through FY 2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                  Fiscal year                                                       Level I    Level II    Level III   Level IV      N/A *    All levels
--------------------------------------------------------------------------------------------------------------------------------------------------------
2020..........................................  ................................      26,152      53,665      10,854       4,531       5,296     100,498
                                                Non-master's....................       6,962      23,380       5,530       2,881       1,987      40,740
                                                Master's or higher..............      19,190      30,285       5,324       1,650       3,309      59,758
2021..........................................  ................................      21,990      49,130      10,515       4,353       4,116      90,104
                                                Non-master's....................       6,475      24,023       5,663       2,810       1,670      40,641
                                                Master's or higher..............      15,515      25,107       4,852       1,543       2,446      49,463
2022..........................................  ................................      22,361      54,020      11,143       4,502       2,676      94,702
                                                Non-master's....................       8,570      32,628       6,140       2,683       1,025      51,046
                                                Master's or higher..............      13,791      21,392       5,003       1,819       1,651      43,656
2023..........................................  ................................      26,107      48,656      10,416       4,205       3,446      92,830
                                                Non-master's....................      11,082      30,060       5,675       2,430       1,286      50,533
                                                Master's or higher..............      15,025      18,596       4,741       1,775       2,160      42,297
2024..........................................  ................................      29,435      43,558      10,370       4,431       8,573      96,367
                                                Non-master's....................      11,111      24,782       5,897       2,734       4,409      48,933
                                                Master's or higher..............      18,324      18,776       4,473       1,697       4,164      47,434
    5-Year Total..............................  ................................     126,045     249,029      53,298      22,022      24,107     474,501
                                                Non-master's....................      44,200     134,873      28,905      13,538      10,377     231,893
                                                Master's or higher..............      81,845     114,156      24,393       8,484      13,730     242,608
    5-Year Average............................  ................................      25,209      49,806      10,660       4,404       4,821      94,900
                                                Non-master's....................       8,840      26,975       5,781       2,708       2,075      46,379
                                                Master's or higher..............      16,369      22,831       4,879       1,697       2,746      48,522
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: USCIS OPQ, CLAIMS3 and ELIS, queried 3/2025, TRK #17265. LCA data from DOL. Disclosure Files for LCA Programs (H-1B, H-1B1, E-3), FY 2018-FY
  2024. DOL data downloaded from <a href="https://www.dol.gov/agencies/eta/foreign-labor/performance">https://www.dol.gov/agencies/eta/foreign-labor/performance</a>.
* N/A: Approximately 5 percent of H-1B cap-subject receipts have wage levels not available. Most N/As use an independent survey or other survey sources
  to determine the prevailing wage rather than using the OFLC online data center provided by DOL.

    Table 12 presents the percentage of H-1B cap-subject receipts by 
wage levels for the estimated 94,900 average annual receipts, based on 
corresponding 5-year averages for FY 2020 through FY 2024. For both 
non-master's degree and master's or higher degree, wage level II has 
the most H-1B receipts followed, in order, by level I, level III, and 
level IV. Master's or higher degree petitions have slightly more 
receipts in level I and level II as shown by the cumulative percentage 
of 86 percent compared to the non-master's degree petitions' cumulative 
percentage of 81 percent. Currently, wage level data are only collected 
for those beneficiaries who were selected in the registration

[[Page 46005]]

selection process and on whose behalf a Form I-129 for H-1B petition 
was filed because H-1B petitioners must obtain a certified LCA from DOL 
that includes the applicable wage level. An LCA is not a requirement 
for registration. Therefore, DHS does not have information on the 
number of registrations for each wage level. DHS assumes that the H-1B 
cap-subject petition receipts percentages by wage levels from LCA data 
are predictive of the H-1B registrations percentages by wage levels. 
However, to the extent that proffered wages may exceed the wage levels 
indicated on the LCA, the projections in this discussion would 
represent the upper bound of the impact of the proposed rule. DHS does 
not have a way to estimate how many registrants would select a higher 
wage level than required on the LCA, DHS uses LCA wage data as a 
reasonable proxy for registration wage data.
    DHS uses the percentages of H-1B cap-subject petition receipts by 
wage level to estimate the distribution of registrations for 
beneficiaries by wage level. Table 12 shows that the distribution of 
current H-1B cap-subject petition receipts, 94,900, by wage level is 28 
percent, 55 percent, 12 percent, and 5 percent for wage levels I, II, 
III, and IV, respectively. DHS uses the 5-year average of the number of 
unique beneficiaries with eligible registrations, 320,711 from Table 3 
and applies the distribution of current H-1B cap-subject petition 
receipts to estimate the number of unique beneficiaries with eligible 
registrations by wage level shown in Table 12.

      Table 12--Percentage of H-1B Cap-Subject Receipts and Estimated Number of Beneficiaries With Eligible
                   Registrations by Wage Level for 5-Year Average for FY 2020 Through FY 2024
----------------------------------------------------------------------------------------------------------------
                   5-Year average                       Level I    Level II    Level III   Level IV      Total
----------------------------------------------------------------------------------------------------------------
Non-master's........................................       9,254      28,238       6,052       2,834      46,379
    Total %.........................................         20%         61%         13%          6%  ..........
    Cumulative %....................................         20%         81%         94%        100%  ..........
Master's or higher..................................      17,351      24,201       5,171       1,799      48,522
    Total %.........................................         36%         50%         11%          4%  ..........
    Cumulative %....................................         36%         86%         96%        100%  ..........
                                                     -----------------------------------------------------------
        Cap-Subject Total...........................      26,605      52,439      11,223       4,633      94,900
                                                             28%         55%         12%          5%        100%
Estimated Number of Beneficiaries with Eligible           89,911     177,216      37,928      15,657     320,711
 Registration by Wage Level.........................
----------------------------------------------------------------------------------------------------------------
Source: USCIS analysis. N/A counts in H-1B cap-subject receipts by wage level were redistributed among wage
  levels using the percent of total. For example, for wage level II, 28,238 is 26,975, the 5-year average of non-
  master's for level II from Table 11, plus 1,264, which is 61 percent of the total N/A count, 2,075. The 5-year
  annual average of number of beneficiaries with eligible registrations, 320,711, is from Table 3. The estimated
  number of beneficiaries with eligible registrations by wage level is estimated using percentages by wage level
  (level I, 28%; level II, 55%; level III, 12%; and level IV, 5%) of the 5-year average of the number of
  beneficiaries with eligible registrations, 320,711.

    The proposed rule would change the way USCIS selects registrations 
for H-1B cap-subject petitions (or petitions, if the registration 
process is suspended), including those eligible for the advanced degree 
exemption. When random selection is required, USCIS would weight and 
select unique beneficiaries with properly submitted registrations 
generally based on the highest OEWS wage level that the beneficiary's 
proffered wage would equal or exceed for the relevant SOC code in the 
area(s) of intended employment. A registrant would be required to 
select the box for the highest OEWS wage level (``wage level IV,'' 
``wage level III,'' ``wage level II,'' or ``wage level I'') that the 
proffered wage generally equals or exceeds for the relevant SOC code in 
the area of intended employment or otherwise select the appropriate box 
according to the form instructions. Registrations for unique 
beneficiaries or petitions would be assigned to the relevant OEWS wage 
level and entered into the selection pool as follows: registrations for 
unique beneficiaries or petitions assigned wage level IV would be 
entered into the selection pool four times, those assigned wage level 
III would be entered into the selection pool three times, those 
assigned wage level II would be entered into the selection pool two 
times, and those assigned wage level I would be entered into the 
selection pool one time. Each unique beneficiary would only be counted 
once toward the numerical allocation projections, regardless of how 
many registrations were submitted for that beneficiary or how many 
times the beneficiary is entered in the selection pool. If a 
beneficiary has multiple registrations, the unique beneficiary would be 
allotted to the lowest wage level of all registrations submitted on his 
or her behalf. The proposed regulatory revisions would increase the 
odds of being selected to file H-1B cap-subject petitions for 
beneficiaries with proffered wages that correspond to the higher wage 
levels. DHS examines the impacts of the proposed change in three 
different dimensions: probability of being selected, estimated number 
of unique beneficiaries selected by wage levels, and economic impact of 
the proposed change.
    Under the current H-1B selection process, if more registrations for 
unique beneficiaries are submitted than projected as needed to reach 
the numerical allocations, USCIS randomly selects from among unique 
beneficiaries for whom registrations were properly submitted, the 
number of unique beneficiaries projected as needed to reach the H-1B 
numerical allocations.\74\ Under this random H-1B registration 
selection process, USCIS first selects from a pool of all unique 
beneficiaries, including those eligible for the advanced degree 
exemption.\75\ USCIS then selects from the remaining unique 
beneficiaries a sufficient number projected as needed to reach the 
advanced degree exemption.\76\ This process allows beneficiaries who 
have earned a qualifying U.S. master's degree or higher a greater 
chance to be selected. The proposed rule would maintain this two-stage 
selection process to keep a higher chance of beneficiaries with a 
qualifying U.S. master's degree or higher of being selected. However, 
for the simplicity of comparing the probabilities of being selected in 
the current random selection process and in the proposed weighted 
selection process, DHS combines the pool of beneficiaries for the 
regular cap and the advanced degree exemption and presents the 
probabilities of being

[[Page 46006]]

selected at different wage levels in this analysis.
---------------------------------------------------------------------------

    \74\ 8 CFR 214.2(h)(8)(iii)(A)(5)-(6).
    \75\ Id.
    \76\ Id.
---------------------------------------------------------------------------

    Table 13 compares the probabilities of being selected and 
corresponding estimated petition receipts by wage level for the current 
random selection process and proposed weighted selection process. Under 
the current random selection process in which every unique beneficiary 
has an equal chance of being selected, the probability of being 
selected to file an H-1B cap-subject petition for a unique beneficiary 
is 29.59 percent across all the wage levels. Under the proposed 
weighted selection, DHS estimates that the probability of being 
selected to file a H-1B cap-subject petition for a unique beneficiary 
would be 15.29 percent for level I, 30.58 percent for level II, 45.87 
percent for level III, and 61.16 percent for level IV.\77\ The 
estimated petition receipts for the current selection process and 
proposed selection process are shown in Table 13. DHS estimates that 
the percentage change in probability of being selected to file an H-1B 
cap-subject petition from the current to the proposed process would 
decrease by 48 percent for level I and would increase by 3 percent, 55 
percent, and 107 percent for level II, level III, and level IV, 
respectively. DHS projects, based on the proposed selection process, 
that the probability of being selected to file an H-1B cap-subject 
petition would be allocated more to levels II, III, and IV, and less to 
level I.
---------------------------------------------------------------------------

    \77\ Under the proposed rule, calculating weighted probability 
is complex due to the involvement of conditional probabilities and 
distributional assumptions. For this analysis, DHS uses simple 
weighted probabilities to approximate the expected distribution of 
each wage level in the sample (see Table 13), comparing 
probabilities of being selected. The new weighted probability 
distribution assumes that companies will keep their current wage 
rates when submitting registrations or petitions. As a result, the 
analysis may underestimate the number of registrations or petitions 
for higher-wage positions selected in the future if companies offer 
higher wages to improve their chance of selection.

     Table 13--Probability of Being Selected and Estimated H-1B Cap-Subject Petition Receipts by Wage Level
----------------------------------------------------------------------------------------------------------------
                                                        Level I    Level II    Level III   Level IV      Total
----------------------------------------------------------------------------------------------------------------
(A) Estimated Number of Beneficiaries with Eligible       89,911     177,216      37,928      15,657     320,711
 Registration by Wage Level.........................
(B) Probability of Being Selected to File H-1B Cap-       29.59%      29.59%      29.59%      29.59%  ..........
 Subject Petitions under Current Random Selection by
 Wage Level.........................................
(C) Estimated Petition Receipts (Random Selection)..      26,605      52,439      11,223       4,633      94,900
(D) Probability of Being Selected to File H-1B Cap-       15.29%      30.58%      45.87%      61.16%  ..........
 Subject Petitions under New Weighted Selection by
 Wage Level.........................................
(E) Percentage Change in Probability of Being               -48%          3%         55%        107%  ..........
 Selected to File H-1B Cap-Subject Petitions from
 Current to Proposed Selection System...............
(F) Estimated Petition Receipts (Weighted Selection)      15,330      55,089      16,243       8,239      94,900
----------------------------------------------------------------------------------------------------------------
Source: (A) USCIS analysis.
(B) The probability of being selected under random selection is 29.59% = (94,900 / 320,711) x 100% regardless of
  different wage levels.
(C) = (A) x (B).
(D) The probability of being selected under weighted selection for level I is 15.29% = (94,900 / (89,911 x 1 +
  177,216 x 2 + 37,928 x 3 + 15,657 x 4)) x 100%. Level II, 30.58% = (probability of being selected for level I,
  15.29%) x 2. Level III, 45.87% = 15.29% x 3. Level IV, 61.16% = 15.29% x 4.
(E) Percentage Change in Probability for Level I = (15.29-29.59)/29.59 x 100% = -48%; for Level II, III, and IV
  follow the same calculation.
(F) To estimate the petition receipts by wage level under the proposed rule, DHS simulated the selection process
  with estimated numbers of beneficiaries with eligible registrations by wage level.

    Table 14 shows the estimated difference in H-1B cap-subject 
petitions by wage level from the current to the proposed selection 
process. DHS applies 85,000, which is the statutory limit on the number 
of initial H-1B visas, rather than the historical 5-year annual average 
of H-1B cap-subject petition receipts, which is 94,900,\78\ because 
only approximately 85,000 beneficiaries would be granted initial H-1B 
status and paid the applicable required H-1B wage. The estimated number 
of annual H-1B cap-subject visas would decrease by 10,099 for level I 
petitions, and would increase by 2,373 for level II petitions, 4,496 
for level III petitions, and 3,230 for level IV petitions.
---------------------------------------------------------------------------

    \78\ Note that the estimated number of H-1B cap-subject 
petitions (94,900) exceeds the number of H-1B visas authorized under 
the statutory cap (approximately 85,000, after certain deductions 
are made for certain numerical set-asides) to allow for the 
possibility that some approved workers would either not seek a visa 
or admission, would not be issued a visa, or would not be admitted 
to the United States.

     Table 14--Estimated Difference in H-1B Cap-Subject Petitions by Wage Level for Current (Random) and New
                                          (Weighted) Selection Process
----------------------------------------------------------------------------------------------------------------
                                                        Level I    Level II    Level III   Level IV      Total
----------------------------------------------------------------------------------------------------------------
Estimated H-1B Cap-Subject Petition Receipts              26,605      52,439      11,223       4,633      94,900
 (Random)...........................................
Estimated H-1B Cap-Subject Petition Receipts              15,330      55,089      16,243       8,239      94,900
 (Weighted).........................................
Statutory Limit on the Number of Initial H-1B Visa..  ..........  ..........  ..........  ..........      85,000
Estimated H-1B Cap-Subject Visa Granted (Random) *..      23,830      46,968      10,052       4,150      85,000
Estimated H-1B Cap-Subject Visa Granted (Weighted) *      13,731      49,342      14,548       7,379      85,000
Difference in Estimated H-1B cap-subject Visa            -10,099       2,373       4,496       3,230           0
 Granted from Random to Weighted Selection..........
----------------------------------------------------------------------------------------------------------------
* Note that Estimated H-1B Cap-Subject Visa Granted (Random/Weighted) is equal to Estimated H-1B Cap-Subject
  Petition Receipts (Random/Weighted) multiplied by 85,000/94,900. This scaling is applied to each wage level.

    All LCAs that are required for H-1B petitions specify SOC codes for 
the prospective jobs. The top two SOC major group codes, Computer and 
Mathematical Occupations (2-digit SOC major group code 15) and 
Architecture

[[Page 46007]]

and Engineering Occupations (2-digit SOC major group code 17), make up 
81 percent of H-1B cap-subject petitions received in FY 2020-FY 2024. 
The top five SOC major group codes make up 96 percent of total 
petitions. Figure 1 breaks out the wage levels for these SOC codes. The 
H-1B cap-subject petitions by wage level presented in previous tables 
show that most of the petitions are at wage level II. As seen in Figure 
1, this is driven by Computer and Mathematical Occupations. Petitions 
for Computer and Mathematical Occupations are overwhelmingly at wage 
level II, whereas petitions for Architecture and Engineering 
Occupations are greater at wage level I than wage level II. For the 
rest of the top five SOC major group codes, the number of H-1B cap-
subject petitions filed at wage level II is greater than level I, but 
not as drastically different as Computer and Mathematical Occupations.
[GRAPHIC] [TIFF OMITTED] TP24SE25.000

    Given that the analysis estimates a 48 percent drop in selections 
for wage level I beneficiaries, the distribution of wage levels at the 
SOC code will determine the effects of the proposed rule for 
occupations under that SOC code. DHS examines these effects for the top 
two SOC major group codes (15 and 17) by breaking out the distribution 
into 6-digit SOC codes. The results are summarized in Figure 2 and 
Figure 3.
    Of the 470,023 H-1B cap-subject petitions received in FY 2020-FY 
2024, 69 percent (326,000) were associated with SOC major group 15 
(Computer and Mathematical Occupations). This major occupation group 
contains 460 distinct 6-digit SOC codes, each corresponding to a 
different detailed occupation. Examples of detailed occupations include 
15-1252 (Software Developers) and 15-2051 (Data Scientists). The top 
five detailed occupations make up 71 percent of the 326,000 petitions 
received under SOC major group 15. Figure 2 details the counts for 
these five detailed occupations, separated by whether they were grouped 
at wage level I or at one of the higher wage levels (II, III, IV). As 
Figure 2 shows, all detailed occupations under SOC major group 15 have 
counts of petitions in wage level I and in higher wage levels except 
15-2041 (Statistician).
    The proposed rule does not project a significant increase in the 
selection of higher wage level workers in the 15-2041 (Statistician) 
occupation.\79\ SOC code 15-1299 (Computer Occupations, All Other) is 
also one of the notable exceptions--there were no petitions with wage 
level I in this category. SOC code 15-1299 is used to encompass 
detailed occupations that do not have a specific code within the broad 
group. The proposed rule would have material effects on these detailed 
occupations since registrations under this code would receive a large 
boost in probability that they are selected.
---------------------------------------------------------------------------

    \79\ However, it is possible that such prospective employers 
already pay a wage that corresponds to a higher wage level such that 
the chance of selection would not be reduced under the proposed 
rule, or that they would choose to pay a wage that corresponds to a 
higher wage level in order to increase the chance of selection for 
workers in level I positions.

---------------------------------------------------------------------------

[[Page 46008]]

[GRAPHIC] [TIFF OMITTED] TP24SE25.001

    After SOC major group code 15, the major group with the next 
greatest number of petitioners is SOC major group code 17 (Architecture 
and Engineering Occupations). This major group had 52,402 petitions 
filed in FY 2020 through FY 2024. Figure 3 details the counts for the 
five detailed occupations within SOC major group code 17 that had the 
greatest number of petitions in FY 2020 through FY 2024. As for SOC 
major group code 17, many of these occupations have petition counts in 
wage level I and in higher wage levels. SOC code 17-2051 (Civil 
Engineers) and 17-1011 (Architects, Except Landscape and Naval) are 
also a notable exception since all the petitions under this code in the 
figure were wage level I. The proposed rule would reduce the number of 
selected H-1B registrations for Civil Engineers and Architects by up to 
48 percent, assuming such registrations would be submitted at wage 
level I consistent with historical LCA wage level data for Civil 
Engineers.\80\ On the other hand, the proposed rule would likely 
increase the number of selected H-1B registrations for SOC code 17-2072 
(Electronics Engineers except Computer), SOC code 17-2131 (Materials 
Engineers), and 17-2100 (Engineers, All Other) since these detailed 
occupations are not expected to contain any wage level I registrations, 
assuming such registrations would be submitted at higher wage levels 
consistent with historical LCA wage level data for these 
occupations.\81\
---------------------------------------------------------------------------

    \80\ To the extent that some of these employers may already be 
paying a wage, or offering to pay a wage, that corresponds to a 
higher wage level, or may choose to do so, DHS recognizes this 
projected reduction represents the upper bound of estimated impact. 
However, because DHS does not have a way to estimate how many 
registrants would pay a proffered wage that corresponds to a higher 
wage level than the wage level required on the LCA, DHS uses the 
wage level selected on the LCA as a proxy for the wage level that is 
likely to be selected on the registration.
    \81\ See the previous footnote.

---------------------------------------------------------------------------

[[Page 46009]]

[GRAPHIC] [TIFF OMITTED] TP24SE25.002

    Most of the petitions are filed with the same top 6-digit SOC codes 
across wage levels, with several exceptions. The proposed rule projects 
that almost half of the registrations for beneficiaries with a 
proffered wage that corresponds to a wage level I typically associated 
with entry-level workers would not be selected but registrations for 
beneficiaries with a proffered wage that corresponds to a higher wage 
level typically associated with more experienced workers would be 
selected in the same occupational categories.\82\ However, for certain 
occupations that have historically included only petitions for level I 
positions, such as Civil Engineers or Architects, except Landscape and 
Naval, the proposed rule does not project a significant increase in the 
selection of higher wage level workers in the same occupations.\83\ 
Instead, the proposed rule projects increased distribution in 
occupations that have historically included petitions for higher wage 
level positions, such as Computer Occupations (all other), Electronics 
Engineers (except computer), Materials Engineers, or Engineers, All 
Other shown in Figure 2 and Figure 3. Therefore, DHS expects that the 
proposed rule would impact the occupational distribution of H-1B 
workers.
---------------------------------------------------------------------------

    \82\ Wage level I, II, III, and IV are defined as entry, 
qualified, experienced, and fully competent, respectively. DOL, ETA, 
``Prevailing Wage Determination Policy Guidance: Nonagricultural 
Immigration Programs'' (revised Nov. 2009), <a href="https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf">https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/NPWHC_Guidance_Revised_11_2009.pdf</a>.
    \83\ However, it is possible that such prospective employers 
already pay a wage that corresponds to a higher wage level such that 
the chance of selection would not be reduced under the proposed 
rule, or that they would choose to pay a wage that corresponds to a 
higher wage level in order to increase the chance of selection for 
workers in level I positions.
---------------------------------------------------------------------------

    A prospective petitioner (employer) may respond to the proposed 
rule in several ways. An employer could choose to increase the 
proffered wage to increase the probability of getting its H-1B 
registration selected. If employers choose to increase the proffered 
wage, or if employers were already offering a salary corresponding to a 
higher wage level, then this proposed rule might result in more 
registrations (or petitions, if registration is suspended) with a 
proffered wage that would correspond to wage level II, III, or IV, and 
fewer registrations corresponding to wage level I. It is also possible 
that an employer may choose not to make any changes in response to this 
rule, especially those employers that were already offering a salary 
corresponding to a higher wage level.
    Other prospective employers may leave the position vacant if the 
alien beneficiary they registered is not selected, because they would 
not be able to justify raising the proffered wage to an amount that 
corresponds to a higher wage level and that would have improved their 
chance of selection. These employers might be unable to fill their 
position(s). And other employers might incur additional costs to find 
available replacement workers, such as by seeking out and/or training 
other workers.\84\
---------------------------------------------------------------------------

    \84\ DHS has not quantified this cost but notes that in the 
analysis accompanying the 2021 rule, DHS ``assume[d] that an entity 
whose H-1B petition is denied will incur an average cost of $4,398 
per worker (in 2019 dollars) . . . to search for and hire a U.S. 
worker in place of an H-1B worker during the period of this economic 
analysis. If petitioners cannot find suitable replacements for the 
labor H-1B cap-subject beneficiaries would have provided if selected 
and, ultimately, granted H-1B status, this final rule primarily will 
be a cost to these petitioners through lost productivity and 
profits.'' 86 FR at 1724. DHS welcomes comment on whether to add 
such a cost to the quantified analysis for the final rule, as well 
as any reliable data or reasonable assumptions regarding the 
percentage of unselected registrants to which such a cost would 
apply.
---------------------------------------------------------------------------

    The effects of this rulemaking on any given employer would depend 
in part on the interaction of a number of complex variables that 
constantly are in flux, including national, state, and local labor 
market conditions, economic and business factors, the type of 
occupations and skills involved, and the substitutability between H-1B 
workers and U.S. workers.
    DHS acknowledges costs incurred associated with loss of output from 
not being able to employ the labor of H-1B beneficiaries. Costs 
incurred associated with loss of potential output will be discussed as 
a transfer later in this section.

[[Page 46010]]

    Table 15 shows quantified economic impacts of the proposed rule. To 
estimate the economic impact of the proposed rule, DHS uses the average 
annual salary of H-1B cap-subject workers by wage level in FY 2024. In 
Table 15, the average annual salary for wage level I is $85,006, for 
wage level II is $103,071, for wage level III is $131,454, and for wage 
level IV is $162,528. The estimated total annual salary paid to H-1B 
cap-subject workers under the current selection process in FY 2024 
dollars would be $8,862,595,799. However, under the proposed weighted 
selection process, the estimated total annual salary paid to initial H-
1B cap-subject workers would increase because there would be fewer wage 
level I workers and more wage level II, III, and IV workers. DHS 
estimates that the total annual salaries paid to H-1B workers would 
increase by $502,080,486 to $9,364,676,285. The $502 million increase 
is the estimated quantifiable economic benefit resulting from the 
proposed rule in the first year.

                                                            Table 15--Benefits and Transfers
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Level I          Level II          Level III         Level IV            Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated Annual H-1B Cap-Subject Visa Granted (Random).......            23,830            46,968            10,052             4,150            85,000
Estimated Annual H-1B Cap-Subject Visa Granted (Weighted).....            13,731            49,342            14,548             7,379            85,000
Difference in Estimated Annual H-1B Cap-Subject Visa Granted             -10,099             2,373             4,496             3,230                 0
 between Random and Weighted Selection........................
Average Annual Salary of H-1B Workers.........................           $85,006          $103,071          $131,454          $162,528  ................
Estimated Total Annual Salary Paid to H-1B Cap-Subject Workers    $2,025,655,768    $4,841,088,469    $1,321,409,280      $674,442,282    $8,862,595,799
 (Random) *...................................................
Estimated Total Annual Salary Paid to H-1B Cap-Subject Workers    $1,167,185,470    $5,085,685,684    $1,912,441,622    $1,199,363,508    $9,364,676,285
 (Weighted) *.................................................
Benefits **...................................................      $858,470,298      $244,597,215      $591,032,342      $524,921,226      $502,080,486
Transfers ***.................................................  ................  ................  ................  ................      $858,470,298
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: USCIS analysis. USCIS OPQ, CLAIMS3 and ELIS, queried 3/2025, TRK #17265. Merged with LCA data from DOL. Disclosure Files for LCA Programs (H-1B,
  H-1B1, E-3), FY 2018-FY 2024. DOL data downloaded from <a href="https://www.dol.gov/agencies/eta/foreign-labor/performance">https://www.dol.gov/agencies/eta/foreign-labor/performance</a>.
Estimated Total Annual Salary Paid to H-1B Cap-Subject Workers *: Multiplying Estimated Annual H-1B Cap-Subject Petition Approved by Average Annual
  Salary of H-1B Workers for Random or Weighted.
Benefit **: Difference between estimated total annual salary paid to H-1B cap-subject workers for weighted and random selection process. $502,080,486
  640 = $9,364,676,285-$8,862,595,799.
Transfer ***: Total annual salary paid to level I workers under random selection process who no longer work. This annual salary is transferred to level
  II, level III, and level IV workers for part of their annual salary under proposed selection process. $858,470,298 = $2,025,655,768-$1,167,185,470
  204.

    The maximum initial granted period of stay for the H-1B status is 
three years, with extensions for up to three years thereafter. Using 
FY2022 through FY2024 data, DHS estimates the validity period of 
approved H-1B cap-subject petitions to be 2.9 years for the initial 
period and 2.2 years for an extension.\85\ Assuming all H-1B cap-
subject workers stay for the initial granted period of 2.9 years and 
half of them extend their stay for 2.2 years, the average H-1B cap-
subject worker's duration of H-1B status is approximately 4 years.\86\ 
DHS recognizes that H-1B extensions vary across petitions and workers. 
For purposes of this analysis, DHS believes it appropriate to assume 
the average H-1B cap-subject worker's duration of H-1B status is 4 
years to estimate the benefits and transfers of the proposed rule.
---------------------------------------------------------------------------

    \85\ Source: USCIS OPS, PRD, CLAIMS3 and ELIS queried 6/2025.
    \86\ DHS assumes that half of H-1B workers who were initially 
subject to the H-1B numerical cap work for a total of 3 years in the 
United States as H-1B nonimmigrants and the other half work for a 
total of 5 years, such that the average is 4 years.
---------------------------------------------------------------------------

    The estimated economic benefits in the first year when the new 
registration selection process is in effect is approximately $502 
million. Assuming H-1B cap-subject workers work an average of four 
years in U.S., these benefits will accrue for three additional years. 
The benefits in the second year would be about $1,004 million, which 
includes the initial $502 million in benefits accrued from new H-1B 
cap-subject workers with higher wages in the first year plus an 
estimated $502 million in benefits accrued from H-1B cap-subject 
workers in the second year. Similarly, the benefits in years 3 and 4 
are $1,506 million and $2,008 million reflecting granted H-1B cap-
subject workers in the current and prior three years.
    In addition to the $502 million in first-year benefits discussed 
previously, the $9.4 billion in first-year H-1B wages resulting from 
the proposed rule also contains a transfer from wage level I workers to 
wage level II, III, and IV workers. When a regulation generates a gain 
for one group and an equal-dollar-value loss for another group, the 
regulation is said to cause a transfer from the latter group to the 
former.\87\ When H-1B allocations change from wage level I workers to 
higher wage level workers, the benefits of the H-1B classification are 
transferred from wage level I workers to higher wage level workers. For 
example, if a wage level IV worker whose annual salary is $160,000 is 
selected instead of a wage level I worker whose annual salary is 
$85,000, then $85,000 of benefits is transferred from the wage level I 
worker to the wage level IV worker (the difference of $75,000 is a 
benefit to the level IV worker). DHS estimates that transfers from wage 
level I workers to other wage level workers would be $858,470,298 in 
the first year under the proposed rule.
---------------------------------------------------------------------------

    \87\ OMB, ``Circular A-4'' (Sept. 17, 2003), 
<a href="http://trumpwhitehouse.archives.gov/sites/whitehouse.gov/files/omb/circulars/A4/a-4.pdf">trumpwhitehouse.archives.gov/sites/whitehouse.gov/files/omb/circulars/A4/a-4.pdf</a> (last visited Aug. 1, 2025).
---------------------------------------------------------------------------

    Assuming H-1B cap-subject workers work an average of four years, 
transfers would also accrue for three additional years. The transfers 
in the second year would be approximately $1,717 million and in years 3 
and 4 the transfers would be about $2,575 million and $3,434 million, 
respectively. In years 5 and beyond, the transfers would be 
approximately $3,434 million. These transfers are the costs incurred 
associated with loss of output from not being able to employ the labor 
of wage level I H-1B workers for the employers who registered H-1B 
workers at wage level I. Whereas the transfers are a benefit to the 
employers who registered H-1B workers at higher wage levels because 
they would expect gains in output by being able to employ H-1B workers. 
To the extent that benefits and transfers are estimated using LCA data, 
and proffered wage

[…truncated; see source link]
Indexed from Federal Register on September 24, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.