2021 will be last year of H1B lottery

2021 H1B selection update: no more lottery, wage prioritization

Update (12/22/2021): DHS withdrew this January 8, 2021 final rule effective December 22, 2021.

Summary: USCIS will modify the 2021 H1B selection process from a random selection process to prioritize wages. DHS delayed the effective date of this rule from March 9, 2021, to December 31, 2021.

As international students need an F-1 visa to study in the United States, foreign employees need work visas that include the H-1B visa category to legally work in the United States. Since there are lots of H1B petitioners, there is a “cap” that limits the number of H1B prospective petitioners and they were selected randomly. H1B applicants who were selected through the lottery procedures, would go through the review process and submit additional documents if they are requested to do so.

Now H1B selection procedure might change in 2021 and it may impact international students as well. By reading this post, you will learn about changes in the 2021 H1B selection procedure and its implication on international students.

Contents


2021 H1B selection update: From lottery process to wage prioritization

On January 7, 2021, USCIS (U.S. Citizenship and Immigration Services) announced that they will select H1B registrations for the filing of H-1B cap-subject petitions. Currently, H1B petitioners submit their applications and they are selected randomly by lottery procedures. USCIS would like to amend current procedures to prioritize wages instead of selecting random petitioners.

Modifying the H-1B cap selection process will incentivize employers to offer higher salaries, and/or petition for higher-skilled positions, and establish a more certain path for businesses to achieve personnel needs and remain globally competitive.

USCIS Modifies H-1B Selection Process to Prioritize Wages

The rationale behind this amendment is “to protect the economic interests of U.S. workers and better ensure the most highly skilled foreign workers benefit from the temporary employment program.” It has been seen since Trump’s administration that U.S. government agencies including USCIS don’t want domestic laborers being substituted by foreign laborers for low wages. For this reason, there were movements to increase the wage baseline for the H1B visa category which was vacated later (To learn more, please click the related blog post below).

Related blog post: H1B Prevailing wage increase and strengthening rule

“The current H-1B random selection process makes it difficult for businesses to plan their hiring, fails to leverage the program to compete for the best and brightest international workforce, and has predominately resulted in the annual influx of foreign labor placed in low-wage positions at the expense of U.S. workers.”

USCIS Modifies H-1B Selection Process to Prioritize Wages

This new 2021 H1B selection procedures only apply to prospective petitioners. Therefore, if you have already filed the petition or if you are planning to file the petition for the upcoming 2021 H1B cap season, you will go through the random selection. However, if you file the H1B petition on and after the effective date which is December 31, 2021, your petition will be reviewed and selected based on the proposed wages.


What does it mean to international students

Given that most international students start having work experience by participating in OPT or STEM OPT program, it can be assumed that this 2021 H1B selection update will impact current international students as well as OPT and STEM OPT participants. F-1 visa holders who hope to work in the United States would have a tendency to choose majors that are associated with higher salaries.

If the baseline wage that USCIS selects is quite high, it might cause a financial burden for U.S employers with relatively low financial resources to sponsor H1B petitioners. On the other hand, U.S. employers with a good financial standing might tend to offer higher wages to help their talented foreign employees to get selected through the H1B selection process. In a long term, therefore, these U.S. employers might attract more professionals around the world. In this sense, the updated 2021 H1B selection rule might cause the centralization of talented international employees for certain U.S. companies and F-1 students will look at these companies to get in as well.

Related blog post 1: 2021 Top 10 employers for OPT, STEM OPT students
Related blog post 2: 2021 Top 10 employers for CPT students

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