The H-1B Landscape: What’s Changing, Who’s Affected, and What it Means for Chicago

Changes are on the horizon for the United States H-1B visa lottery system. The White House Office of International and Regulatory Affairs (OIRA) approved a rule proposed by the Department of Homeland Security to replace the H-1B random lottery system.

The new system, implemented in fiscal year 2027, would be a weighted selection process based on salary. The proposal is titled “Weighed Selection Process for Registrants and Petitioners Seeking to File Cap-Subject H-1B Petitions.” This process will prioritize applicants with higher salaries, potentially reducing opportunities for lower-wage applicants.

The program overhaul will impact many industries and businesses in Chicago, Illinois, and nationwide. Scott D. Pollock and Associates, P.C., is actively tracking every development to ensure our valued clients receive informed and strategic guidance.

Why These Changes Matter

The H-1B visa is a non-immigrant, temporary visa that allows U.S. employers to hire international talent for specialty occupations. There are several required qualifications, but all applicants must hold at least a bachelor’s degree or higher in a related field. Employers follow rigorous H-1B visa requirements when sponsoring an H-1B visa applicant, including providing proof that there are no qualified applicants who are U.S. citizens.

Historically, the H-1B visa lottery is a random process that provides equal selection opportunity to applicants seeking employment in the U.S. at any compensation level and experience level. Under the new guidelines, individuals with higher salaries will be prioritized. What is not clear yet is precisely how these changes will be implemented. Our experienced immigration lawyers continue to monitor the situation for new information as it becomes available.

If the changes are adopted, higher-wage international workers will be prioritized. This means entry-level workers, those with less experience, and those in less-compensated fields could have a harder time securing work in the U.S. on an H-1B visa. This new landscape means employers could find it more challenging to fill those positions. 

Impact of H-1B Visa Changes on Businesses

If the H-1B selection process is overhauled from a random selection process where all applicants have the same chance to a system that rewards higher wages, employers could change the way they hire. Under the new system, employers may be more likely to sponsor higher-level applicants to increase the odds of being able to hire global talent, dramatically affecting the number of opportunities for international employees.

With this in mind, businesses could be impacted in numerous ways.

• Loss of entry-level talent who build future senior talent.
• Increase in labor costs, where startups, small businesses, and nonprofits could especially struggle.
• Industries with domestic labor shortages will not have enough staff.
• Reduction in the diversity of perspectives that come from different backgrounds which is vital for our global economy.

H-1B Visa Levels

The H-1B visa is divided into four levels. Under the new rule, levels three and four would be prioritized, giving levels one and two lower odds of being granted an H-1B visa. Levels one and two are generally comprised of recently graduated international students, early-career professionals, and those who work in less highly compensated jobs.

About 85,000 H-1B visas are granted yearly, with far more applicants. Last year saw over 300,000 applicants. Under this proposed system, and according to analysis of historic data, there is a chance that no level one or two applicants will be granted an H-1B. 

Level 1 – Entry Level: Requires limited or no prior work experience. Often, recent graduates, trainees, or junior-level employees.
Level 2 – Qualified: Some prior work experience and a more developed understanding of the position.
Level 3 – Experienced: Significant experience and knowledge of the field.
Level 4 – Fully Competent/Expert: Extensive experience, expert knowledge, and leadership.

Industries Most Likely Impacted by H-1B Visa Changes

There are many fields facing a domestic labor shortage that the overhaul will most impact.

• Technology
• STEM Fields (Science, Technology, Engineering, Mathematics)
• Healthcare
• Professional and Business Services
• Educational and Research Institutions

H-1B visa holders are about 0.5% of the U.S. workforce overall. The technology industry relies the most on H-1B visa holders, who make up about 15% of the workforce. 

There is concern among industry leaders across the board that the new H-1B regulations could put the U.S. at a competitive disadvantage in many fields. This could lead to a slowdown in innovation and economic growth.

What the H-1B Visa Changes Mean for Chicago and Illinois State?

Chicago is an economic center for many industries, including technology, finance, healthcare, and academic research. The ability to hire global talent at all levels is important to industry leaders who want to stay competitive and vital for small businesses to grow. 

The process of sponsoring an H-1B applicant is time-consuming and intensive, and these latest changes could make it more challenging. When filing an H-1B application in Chicago, it is advisable to work with one of our experienced employment-based immigration attorneys.

How Our Chicago H-1B Visa Lawyers Can Help?

The proposed H-1B visa changes mark a potential turning point for employment immigration policy. Once the Department of Homeland Security (DHS) publishes the rule, the public will be able to submit comments. If no lawsuits succeed in blocking the rule, the new H-1B selection process could be active for the FY 2027 H-1B cap selection process.

Our immigration attorneys are committed to assisting employers and applicants in navigating these changes by:

• Determining your correct wage level.
• Improving your application strategy.
• Handling your compliance and documentation.
• Advising you on timing and rule changes.
• Protecting you against enforcement risks.
• Recommending other pathways for working in the U.S. legally.

If you are an employer who relies on global talent or an international applicant in need of assistance, contact us for guidance or to answer your questions about the new H-1B visa changes.