If you are a New Jersey employer relying on foreign talent, the last few months have likely felt like navigating a minefield. Between the Department of Labor’s new “Project Firewall” and the confusing headlines about a $100,000 visa fee, H-1B visa’s feel more complicated than ever.

As we look toward the upcoming H-1B lottery (Fiscal Year 2027, occurring in March 2026), the rules of the game are shifting. It is no longer enough to just “enter and hope.” The strategy for 2026 requires understanding new financial risks and a potential overhaul of how winners are selected.

Here is your straightforward guide to what is happening and how to protect your business.

The “Weighted” Lottery: A Game Changer for 2026/27?

For years, the H-1B lottery was purely random. Whether you paid a Level 1 (entry-level) wage or a Level 4 (experienced) wage, your odds were the same.

That is changing. The Department of Homeland Security’s proposed “modernization rule” (introduced in September 2025) aims to replace the random lottery with a weighted selection system.

1. What this means: The system would prioritize “higher-skilled, higher-paid” workers. A registration for a Level 4 wage position could get four entries in the lottery, while a Level 1 entry-level analyst gets only one.
2. Wage-Based Weighting: Instead of each registration getting one chance, the number of entries depends on the salary offered, tied to DOL wage levels.
3. Employer Responsibility: Employers must identify the correct DOL wage level (based on job code, location, and experience) and offer a corresponding wage, certifying it’s bona fide.

The Bottom Line: If you rely on hiring fresh graduates (Level 1 wages) from local universities like Rutgers or NJIT, your odds of selection may drop significantly. We can help you your prevailing wage determinations now. Is there a legitimate way to qualify the position at a Level 2 or 3? This assessment could be the difference between an approval and a rejection.

The $100,000 Fee: Don’t Panic (Yet)

You have likely seen the headlines about the “Proclamation on Restriction of Entry” requiring a massive $100,000 payment for H-1B petitions filed after September 21, 2025.

Here is the reality check for our local clients:

• It applies to “New Entries”: This fee is primarily targeted at companies bringing new workers in from overseas who do not currently hold a valid visa.
• The Exemption: Crucially, USCIS has clarified that this fee does not apply to:
  • Extensions of status for employees already working for you.
  • Change of Status petitions (e.g., an F-1 student at Stevens Institute moving to H-1B).
  • Transfers (hiring an H-1B worker already in the US from another company).

The Bottom Line: For most of our NJ corporate clients hiring locally or retaining staff, this fee is a non-issue. However, if you are transferring an executive from abroad, we need to talk immediately about exemptions or alternative visa classes (like L-1) to avoid this cost.

“Project Firewall” and DOL Enforcement

Launched in September 2025, “Project Firewall” is the Department of Labor’s new interagency enforcement initiative. The days of “file it and forget it” are over.

• What’s New: The Secretary of Labor can now personally certify investigations based on “reasonable cause.”
• What They Are Looking For:
  • Wage Theft: Are you actually paying the wage listed on the LCA?
  • Benching: Are you paying your H-1B employee even when there is “no work” available?
  • Job Duties: Does the day-to-day work match the complex duties described in the petition?

The Bottom Line: We are seeing increased scrutiny on third-party placements. If you are an IT staffing firm in New Jersey placing workers at client sites, your “Employer-Employee Relationship” documentation must be bulletproof.

Registration Fee Increase

A smaller but necessary note: The H-1B registration fee has jumped from $10 to $215 per beneficiary. While this isn’t a bank-breaker for most companies, it does increase the sunk cost if you are registering a high volume of candidates.

Your Action Plan for 2026

We are urging all our corporate clients to take three steps before the March 2026 registration window opens:

1. Audit Your LCAs: With Project Firewall active, let us review your Public Access Files to ensure you are audit-ready today.
2. Re-evaluate Wage Levels: Look at your candidates for the upcoming lottery. Can we justify a higher wage level to improve their odds under the potential new weighted system?
3. Confirm Candidate Location: Verify exactly where your candidates are physically located to determine if the $100k “entry fee” risk applies to them.

Do not wait until February. The landscape has changed, and early preparation is your best defense.

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Have questions about the 2026 H-1B Lottery or Project Firewall? Contact Harlan York & Associates at 973-642-1111. We return most calls within 24 hours.