Proposed H-1B Rule Could Replace Lottery With Wage-Based Selection: What Pennsylvania Employers Should Know
A significant change to the H-1B visa process may soon impact employers across Pennsylvania. On August 8, the White House’s Office of Information and Regulatory Affairs (OIRA) approved a proposed regulation that could overhaul how specialty occupation visas are allocated. While U.S. Citizenship and Immigration Services (USCIS) has not yet shared details, the rule is widely expected to revive a Trump-era plan to prioritize higher-paying jobs in the H-1B selection process—a change that could affect companies in Allentown, Philadelphia, Pittsburgh, and throughout the Commonwealth.
Currently, the H-1B program, capped at 85,000 visas annually, relies on a random lottery to select petitions subject to the cap. Pennsylvania employers submit registrations each spring, and USCIS randomly chooses which will move forward. This means that whether a Scranton tech startup offers an entry-level wage or a Philadelphia engineering firm offers a top-tier salary, each has an equal chance of selection.
The anticipated change would replace that lottery with a wage-ranking system. Positions would be grouped into four Department of Labor prevailing wage tiers, with petitions offering the highest wages reviewed first. Lower wage tiers would only be considered if slots remain.
Supporters say this would ensure that the “most skilled” foreign workers—often those commanding higher salaries—are prioritized. Opponents, including business and immigration advocacy groups, warn that it could disadvantage recent graduates, nonprofit organizations, and employers in sectors where salaries are competitive but not in the highest tiers.
A similar rule finalized in 2021 was withdrawn before it took effect, following lawsuits and policy reversals by the Biden administration. Courts also blocked related measures to raise prevailing wage requirements and restrict what qualifies as a “specialty occupation.”
If this new rule follows the earlier model, Pennsylvania employers offering top-tier salaries could see improved odds in securing H-1B visas, while smaller businesses and startups may face additional challenges. If you’re a Pennsylvania business that hires foreign talent, preparation is key:
Review your wage levels for positions likely to be filled with H-1B candidates and compare them to prevailing wage tiers.
Consider strategic salary adjustments or role reclassifications to improve selection odds if a wage-based system is implemented.
Explore alternative visa options, such as O-1, TN, or L-1 visas, to maintain access to critical talent.
Participate in the public comment period once the rule is published to ensure Pennsylvania employers’ voices are heard.
Plan early for the FY 2026 H-1B cap season, as the change could reshape who gets selected.
Lehigh Valley Immigration Law LLC works with Pennsylvania employers, universities, hospitals, and startups to navigate the H-1B visa process and other employment-based immigration needs. If you want to understand how this proposed change could impact your hiring strategy, or need help developing a compliant, competitive petition, contact our Allentown office today.