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Warner Norcross + Judd LLP is a corporate law firm with over 230 attorneys serving clients in nine offices throughout Michigan. Among the largest law firms in Michigan, Warner works in virtually all areas of business law.

Michigan Law Firm - Warner Norcross + Judd LLP

March may still feel far away, but for employers with foreign national talent, the FY 2027 H-1B cap lottery will be here before you know it. USCIS is expected to open the registration window in March 2026, with selections occurring shortly after the window closes in mid-March.

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As always, demand is expected to far exceed supply. Only 85,000 H-1B numbers are available each year, including 20,000 reserved for individuals with a U.S. master’s degree or higher, which means selection is again determined by lottery.

This year, however, the H-1B cap season comes with new rules, new fees and widespread confusion — particularly around the much-discussed $100,000 H-1B fee.

The $100,000 Fee: Much Talked About, Widely Misunderstood

We recently attended a conference where many employers were under the impression that every H-1B petition now comes with a $100,000 price tag. That is not correct.&nbsp; The most important takeaway is this: The $100,000 H-1B fee does not apply to most individuals employers typically register in the H-1B cap lottery.&nbsp;

USCIS has issued clear guidance confirming that the fee does not apply to foreign nationals who are already in the United States and are eligible for:

A change of status (for example, F-1 to H-1B), or

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This includes the vast majority of cap-subject candidates employers sponsor each year, such as:

Individuals in H-4 or L-2 status with work authorization.

Professionals already in the U.S. in another valid nonimmigrant status.

If USCIS approves the H-1B petition with a valid change of status, the $100,000 fee does not apply, even if the individual later travels abroad and applies for an H-1B visa to return to the U.S.

So, for most employers, the $100,000 fee is not the new normal — despite what the rumor mill suggests.

When Does the $100,000 Fee Apply?

The fee generally applies in more limited situations, including:

Beneficiaries outside the United States with no valid H-1B visa.

Petitions requesting consular notification or port-of-entry processing.

Cases where USCIS determines the individual is not eligible for a change of status (for example, because of a status violation or departure from the U.S. before adjudication).

There is also a theoretical national-interest exception, but it is, in DHS’s own words, extraordinarily rare.

A New Lottery System: Wage-Weighted Selection

In addition to the fee confusion, this year’s cap season introduces a new wage-weighted selection process that replaces the prior “one per person” model.

Under the new system, registrations receive multiple entries based on the wage level tied to the offered salary:

This structure gives higher paying jobs greater chances of selection. Wage levels are determined by the Department of Labor for the occupational category and geographic location of employment.&nbsp;

While it’s too early to know how this will affect overall selection rates, it may reduce odds for entry-level or lower-wage positions if higher-wage registrations dominate the pool. Employers should factor this into both workforce planning and compensation strategy well ahead of March.

Litigation Update (Because There’s Always Litigation)

Not surprisingly, the $100,000 fee has been challenged in court. The U.S. Chamber of Commerce filed suit, and although the government recently prevailed at the summary judgment stage, the Chamber has appealed and the appeal has been fast-tracked. Other challenges are also pending.

We continue to monitor these cases closely. For now, however, USCIS’s guidance is controlling, and the exemption for individuals already in the U.S. seeking a valid change of status remains in place.

What Employers Should Be Doing Now

With March approaching and the rules evolving, now is the time to:

Identify employees or candidates who may need H-1B sponsorship.

Confirm current immigration status and eligibility for change of status.

Review job descriptions, salaries and worksites.

Evaluate wage levels under the new weighted selection system.

Budget intelligently — without assuming a $100,000 fee applies across the board

We’re Here to Help (and to Dispel the Myths)

If you have employees you’re considering for this year’s H-1B cap lottery — or if you’ve heard something alarming about fees that made you spill your coffee — we encourage you to reach out. Early review is more important than ever, and in many cases, the situation is far less dire (and far less expensive) than it may seem at first glance.

The H-1B lottery is coming. Let’s make sure you’re prepared — with facts, not rumors.

Talent Without Borders

Partner

Sarah R. Bileti

Associate

Christopher M. LeClair

Immigration

The H-1B Cap Lottery Is Coming (And No, Most Employers Will Not Pay the $100,000 Fee)

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The H-1B Cap Lottery Is Coming (And No, Most Employers Will Not Pay the $100,000 Fee)

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