As the FY2027 H-1B cap season approaches, both employers and prospective beneficiaries should be aware of recent regulatory developments, evolving government priorities, and practical compliance considerations that may affect eligibility, selection, and filing strategy.

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Overview of the H-1B Program

The H-1B is a temporary, nonimmigrant visa that allows U.S. employers to employ foreign nationals in specialty occupations, defined as positions that require at least a bachelor’s degree or its equivalent in a specific field of study.

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Key features of the H-1B visa include:

• Dual intent classification (permitting pursuit of permanent residence)
• Initial validity of up to three years, with extensions up to six years, and further extensions available in certain green card–related circumstances
• An annual numerical limit (“cap”) of 65,000 visas, with an additional 20,000 visas reserved for individuals holding U.S. master’s degrees or higher

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Due to demand consistently exceeding supply, most cap-subject petitions are selected through a lottery process.

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Specialty Occupation and Degree Requirements

Recent regulatory updates have refined how U.S. Citizenship and Immigration Services (USCIS) evaluates whether a position qualifies as a specialty occupation.

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Under current standards, employers must demonstrate not only that:

• a bachelor’s or higher degree is normally required for the position, but also that
• there is a direct and logical relationship between the required degree field(s) and the job duties.

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Where a role permits multiple degree fields, the employer must be able to explain how each acceptable field directly relates to the position’s responsibilities. Practical implication: Job descriptions, degree requirements, and business justifications should be reviewed carefully prior to registration and filing to ensure internal consistency and regulatory compliance.

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H-1B Cap and FY2027 Timeline

• March 4, 2026 (12:00 p.m. ET)
  
  • H-1B cap registration opens
  • Electronic registration period begins via  USCIS
• March 19, 2026 (12:00 p.m. ET)
  
  • H-1B cap registration closes
  • Deadline for submitting all electronic registrations for FY 2027.
• By March 31, 2026
  
  • USCIS intends to issues selection notifications
  • Notifications are sent through users’ USCIS online accounts.

• After Selection Notifications
  
  • Only selected beneficiaries are eligible to file H-1B cap-subject petitions.
  • This includes beneficiaries eligible for the advanced degree (master’s) exemption.

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Employment start date: October 1 of the relevant fiscal year (October 1, 2026 for FY2027)

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Only registrations selected in the lottery may proceed to petition filing. Employers may not substitute beneficiaries after selection, and only one registration per beneficiary is permitted.

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Cap-Exempt Filings

Not all H-1B petitions are subject to the annual cap or lottery. Common cap-exempt filings include:

• Extensions of H-1B status
• Amendments (e.g., changes in work location or job duties)
• Petitions filed by a new employer for a worker already counted against the cap

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Certain institutions, including qualifying universities and nonprofit or governmental research organizations, may also be exempt from the cap.

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Wage Levels, Classification, and Increased Scrutiny

Recent policy developments reflect a heightened focus on ensuring that the H-1B program is used for positions requiring specialized skills and appropriate compensation.

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As part of this focus:

• Wage levels selected for the Labor Condition Application (LCA) have increased importance
• Occupational classification (SOC codes) must closely align with actual job duties
• Employers should expect greater scrutiny of inconsistencies between job descriptions, wage levels, and work locations

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Selections made at the registration stage—particularly regarding wage level—may effectively lock in those representations if a case is selected.

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Identifying Potential H-1B Candidates

Common groups considered during cap season include:

• F-1 students working under OPT or STEM OPT
• TN professionals seeking a dual-intent alternative
• L-1B employees approaching the five-year maximum
• Certain dependent spouses whose work authorization is contingent on a principal visa holder

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Early identification is critical, as registration is permitted only during the designated registration period each year.

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Travel, Worksite Changes, and Compliance Considerations

Both employers and beneficiaries should exercise caution regarding:

• International travel during pending change-of-status petitions, which can affect case outcomes
• Changes in work location, including remote or hybrid arrangements, which may trigger LCA reposting or amended filings

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Employers are also advised to maintain compliance readiness, including:

• Properly maintained Public Access Files
• Internal procedures for responding to government site visits
• Clear communication protocols between HR, legal counsel, and employees

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The FY2027 H-1B cap season presents both opportunities and challenges. With evolving regulatory interpretations and increased emphasis on wage alignment, classification accuracy, and compliance, advance planning is essential.

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Employers and foreign nationals alike benefit from early assessment, coordinated strategy, and careful documentation. Proactive preparation reduces risk, enhances filing quality, and supports continuity of employment in an increasingly competitive immigration environment.

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Contact and Disclaimer

Should you have any questions regarding the above information, or require assistance with your immigration or global mobility matters, please don’t hesitate to contact our legal team at Hudson McKenzie. You can reach us by email at londoninfo@hudsonmckenzie.com or by telephone at +44 (0) 20 3318 5794.

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For office locations, please visit our Our Offices page.

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The information provided in this blog is for general guidance only and does not constitute legal advice.