The H-1B visa is the primary path for U.S. employers to hire foreign nationals in specialty occupations — roles that require at least a bachelor's degree in a specific field. Because demand consistently exceeds supply, Congress created an annual cap, and USCIS (U.S. Citizenship and Immigration Services) uses a selection process to decide who gets to file a full petition. That selection process is what most people call "the lottery."

Key Points

  • What: A congressionally mandated annual cap on H-1B visas, with a selection process to allocate available slots among employers who register
  • Who: Foreign nationals in specialty occupations whose prospective employers are "cap-subject" (most private-sector employers)
  • When: The process typically begins in March each year, with selected workers starting employment on October 1
  • Why it matters: Without being selected, an employer cannot even file a full H-1B petition — getting through the selection process is a prerequisite, not a guarantee of approval

The Annual Cap: Two Buckets

Congress has set a statutory cap of 65,000 H-1B visas per fiscal year for the general pool, commonly called the "regular cap." A separate allocation of 20,000 visas is reserved for beneficiaries who hold a U.S. master's degree or higher — this is called the "master's cap" or "advanced degree exemption."

That totals 85,000 cap-subject visas available each year. Because applications routinely exceed this number, a selection process determines who moves forward.

Not every H-1B is subject to the cap. Universities, nonprofit research organizations, and certain government research entities are cap-exempt, meaning their employees can file petitions at any time without going through selection.

Step 1: Electronic Registration

The process begins with electronic registration, not a full petition. Employers (or their attorneys) create an account in USCIS's online system and submit a registration for each prospective beneficiary, along with a required registration fee per registrant. Check USCIS's current fee schedule (Form G-1055) for the exact amount, as fees can change.

During registration, employers must also provide the highest Occupational Employment and Wage Statistics (OEWS) wage level that the beneficiary's offered wage equals or exceeds. This wage-level data feeds directly into how selections are made under the current system.

Registration typically opens in March for the upcoming fiscal year. USCIS announces the exact window each year — confirm the current dates on uscis.gov.

Step 2: Selection

Once registration closes, USCIS conducts a selection from the submitted registrations. As of the FY 2027 cap season, the selection system prioritizes registrations based on the wage level submitted relative to the OEWS wage scale for the relevant occupation and location — higher wage levels receive higher selection priority. This replaced the prior random lottery system.

Beneficiaries with a U.S. master's degree or higher are considered first under the advanced degree exemption pool, and any unselected registrations from that group roll into the general pool for a second chance at selection.

If your registration is selected, USCIS notifies the employer through the online account. Selection only means you're eligible to file — it's not an approval.

Step 3: Filing the Full Petition

Selected registrants have a filing window, typically 90 days, to submit the full Form I-129 (Petition for a Nonimmigrant Worker) package. Before the employer can file, they must obtain a certified Labor Condition Application (LCA) from the Department of Labor, which attests to prevailing wage compliance and working conditions.

The petition goes to USCIS for adjudication. Employers can pay for premium processing — which guarantees a decision within a specified number of business days — if they need faster certainty. Check USCIS for the current premium processing fee and timeframe.

Step 4: Visa Stamping and Entry

If USCIS approves the petition and the worker is outside the U.S., they must obtain an H-1B visa stamp at a U.S. consulate or embassy before traveling. This step involves the Department of State and its own scheduling process — wait times vary significantly by location.

Approved cap-subject H-1B workers can begin employment on October 1 of the relevant fiscal year.

What You Should Know

  • Selection is not guaranteed, even with a strong registration. Odds depend on total demand each year — confirm the most recent selection statistics on uscis.gov.
  • The wage-based selection system means the offered salary relative to the OEWS wage scale for the role and location now directly affects selection priority.
  • Cap-exempt employers (universities, nonprofits, government research) bypass the lottery entirely — worth knowing if you have options.
  • Because the process spans multiple agencies and many months, work with your employer's immigration counsel early. Consult an immigration attorney for advice specific to your situation.

For current registration dates, fees, and any rule updates, always verify directly with USCIS at uscis.gov/h-1b-specialty-occupations.