We hope this newsletter finds you well. In this edition, we bring you important updates on various immigration matters. Please take a moment to review the following key highlights:
FY 2027 H-1B CAP Registration Closes: Lottery Results Expected by March 31
Registration window shut March 19, 2026 | Wage-weighted selection debuts this year | March 2026 The initial registration period for the Fiscal Year 2027 H-1B cap officially closed on March 19, 2026, at 5:00 p.m. Eastern Time, ending the short but pivotal window during which U.S. employers submitted electronic registrations for foreign national workers seeking cap-subject H-1B status. The registration window opened March 4, 2026, giving employers a 16-day period to register beneficiaries through the USCIS online system and pay the applicable per-registration fee. With the window now closed, attention turns to the lottery—and to a set of structural changes that make FY 2027 one of the most consequential H-1B cap seasons in recent memory. FY 2027 H-1B CAP: Key Dates at a Glance: What Happens Now:- USCIS will review all submitted registrations and, if the total number exceeds the annual statutory cap of 65,000 regular cap slots and 20,000 U.S. advanced degree exemption slots, will conduct a computerized lottery selection. Selection notifications are expected to be posted to employer USCIS online accounts by March 31, 2026.
- Only employers whose registrations are selected will be permitted to file H-1B cap-subject petitions on behalf of those specific beneficiaries. Filing typically opens April 1, with petitions requesting an employment start date of October 1, 2026—the first day of Fiscal Year 2027.
- The FY 2027 cycle introduces changes that meaningfully alter the strategic calculus for every employer and immigration practitioner involved in the H-1B program.
The Wage-Weighted Lottery: What It Means in Practice:
- The introduction of wage-based weighting represents the most significant structural change to H-1B selection since the beneficiary-centric reform of recent years. Under the new framework, registrations associated with higher prevailing wage levels are assigned greater statistical weight in the selection process.
- In practical terms, this means that an employer offering a Level 3 or Level 4 prevailing wage determination faces meaningfully better lottery odds than one filing at Level 1 or Level 2 for an identical SOC code. For employers sponsoring genuinely senior positions with competitive compensation, this cycle may represent a significantly improved selection probability compared to prior years.
- The change also intensifies the compliance risk for employers who inflate wage levels or job titles to improve their odds. USCIS now has registration-stage SOC code and wage level data that it can compare directly against petition content and, where FDNS is involved, against site-visit findings.
Compliance Implications: Data You Filed Is Now on Record:
- A critical development that many employers have not fully absorbed: the SOC code, wage level, and work location submitted at the registration stage are now preserved in the USCIS system. If a petition is later filed with different or inconsistent data, that discrepancy will be visible to the adjudicating officer.
- This registration-to-petition consistency requirement is not merely administrative. In the context of heightened FDNS enforcement and the AAO’s ruling in Matter of Texperts, Inc., 29 I&N Dec. 491 (AAO 2026)—which confirmed that fraud findings can issue even on withdrawn petitions and follow employers and beneficiaries permanently—data accuracy at every stage of the H-1B process has taken on new legal significance.
AAO Issues Landmark Ruling: USCIS Can Make Fraud Findings Even on Withdrawn Immigration Petitions
Matter of Texperts, Inc., 29 I&N Dec. 491 (AAO 2026) – A precedent-setting decision with sweeping implications for employers, petitioners, and foreign nationals nationwide.
The Administrative Appeals Office (AAO) of U.S. Citizenship and Immigration Services (USCIS) has issued a precedent decision that significantly expands the agency’s ability to pursue fraud findings against employers and foreign nationals—even after a petition has been voluntarily withdrawn.
The ruling, styled Matter of Texperts, Inc., 29 I&N Dec. 491 (AAO 2026), arose from an H-1B petition and establishes binding authority across all USCIS offices. It marks a decisive shift in how the agency approaches petitions suspected of fraud or material misrepresentation.
What the Ruling Holds:- Prior to Texperts, many practitioners advised clients facing problematic petitions to simply withdraw the filing, operating under the assumption that withdrawal would prevent USCIS from issuing a formal fraud determination. The AAO has now firmly closed that door.
- The decision confirms that USCIS retains authority to issue a formal finding of fraud or willful misrepresentation even on a withdrawn petition—and that such findings are preserved in the agency’s permanent records. Those records can be accessed and used in future H-1B, L-1, I-140, I-485, consular processing, and naturalization proceedings.
Broad Reach Beyond H-1B:
- Although the case arose in the H-1B context, the AAO’s reasoning was not limited to that visa category. The decision signals that fraud findings can carry consequences across the full spectrum of immigration benefits—including employment-based and family-based green cards and even naturalized U.S. citizenship obtained through a prior fraudulent petition.
A Defense Exists—But Only If You Act:
- The AAO also vacated the fraud finding in Texperts itself, finding that USCIS had failed to properly identify whether the conduct constituted fraud or mere willful misrepresentation and had not tied the evidence to each required legal element. This ruling creates a significant—though narrow—defense pathway for respondents who receive a fraud finding that is procedurally or substantively deficient.
- However, that defense requires an immediate and well-crafted legal response. A late or inadequate reply to a Notice of Intent to Deny (NOID) or a fraud determination can permanently foreclose the challenge.
- Texperts arrives amid a broader period of heightened USCIS scrutiny of business immigration filings. The agency has increased its focus on H-1B petitions involving staffing companies, offshore-connected entities, and arrangements where the petitioner’s ability to control the beneficiary’s work is unclear. The decision provides the agency with a more durable enforcement tool to address those concerns.
H-1B FDNS Site Visits Are Rising: How Employers Filing Senior Roles for Recent Graduates Can Stay Compliant—and Out of USCIS’s Crosshairs Heightened FDNS Enforcement | Matter of Texperts, 29 I&N Dec. 491 (AAO 2026) | April 2026 U.S. Citizenship and Immigration Services (USCIS) and its Fraud Detection and National Security (FDNS) unit have sharply intensified site visit activity targeting H-1B employers, with particular focus on a filing pattern that has drawn consistent scrutiny: senior-level or higher Job Zone roles assigned to recent graduates with limited professional experience. The enforcement pressure arrives at a moment when the stakes could not be higher. A recent landmark AAO decision, Matter of Texperts, Inc., 29 I&N Dec. 491 (AAO 2026), confirmed that USCIS can issue lasting fraud findings—even on withdrawn petitions—that can follow employers and foreign nationals through every subsequent immigration proceeding, including green card applications and naturalization. Why This Is the #1 FDNS Risk Profile Today:
- FDNS officers are trained to identify credibility gaps—situations where what appears on the petition does not match the real-world employment relationship. The combination of a recently-graduated beneficiary, a Level 3 or Level 4 prevailing wage determination, a senior-sounding job title, and complex listed duties is precisely the profile that triggers enhanced review.
What FDNS Officers Are Checking On-Site:
- FDNS site visits are unannounced and typically last one to two hours. Officers verify whether the real employment relationship matches every material representation in the petition. The five areas of focus are:
Work Location:
- Is the employee working at the LCA-listed worksite, at their approved remote home address, or at a third-party client site? Any mismatch—including unapproved remote arrangements—constitutes an LCA compliance violation and grounds for a NOID.
Actual Job Duties:
- Officers will ask the employee directly what they do each day. If a petition describes high-level architectural design decisions and the employee is performing basic QA testing, that discrepancy is immediately flagged.
Supervision and Employer Control:
- Does a direct supervisor at the petitioning employer actually direct the work? Consulting companies and staffing arrangements face the highest scrutiny here, particularly where day-to-day control rests with a third-party client.
Wage Compliance:
- Is the employee being paid the full LCA prevailing wage for all hours worked? Pay stubs, timesheets, and W-2s may be requested.
Qualifications Match:
- Does the employee’s degree and experience actually correspond to the complexity of the stated role? This is where Job Zone mismatches are most directly examined.
SOC Code and Wage Level: Getting It Right from Day One:
- The most preventable FDNS trigger is a SOC code or wage level that does not match the candidate’s actual experience. The selection process should begin with the real daily job duties—not the job title, not the degree field, and not the wage level the employer prefers to pay.
Wage Level Selection Guide:
FDNS Readiness: What Every Employer Must Have Ready:
- Every H-1B employer should maintain the following documentation in real time—not assembled after an FDNS visit is announced.
The Texperts Dimension: Why There Is No “Fix Later” Option:
- Prior to Matter of Texperts, Inc., employers sometimes treated a problematic H-1B petition as something that could be quietly withdrawn if scrutiny intensified. That option no longer exists as a reliable safety valve.
- The AAO confirmed that USCIS may issue a formal fraud or misrepresentation finding even after withdrawal, preserve that finding in the permanent record, and deploy it in future proceedings—including I-140 petitions, adjustment of status applications, consular visa processing, and naturalization. A single fraud finding tied to a misclassified H-1B for a recent graduate can thus permanently damage the employer’s ability to sponsor future workers and the foreign national’s path to permanent residence.
April 2026 Visa Bulletin Shows Major Advancement; USCIS to Honor Dates for Filing The U.S. Department of State has released the April 2026 Visa Bulletin, bringing continued forward movement across several employment-based (EB) immigrant visa categories, particularly in EB-2 and EB-3. In a significant development, U.S. Citizenship and Immigration Services (USCIS) has confirmed that it will accept adjustment of status (I-485) applications based on the Dates for Filing chart for April—creating an important filing opportunity for many foreign nationals. The April 2026 Visa Bulletin brings positive news for many employment-based applicants, with continued forward movement across several categories. Most notably, EB-2 is now current for all countries except India and China, and EB-3 (Professional & Skilled Workers) is current for most countries under the Dates for Filing chart. In addition, USCIS has confirmed that it will accept adjustment of status (I-485) applications based on the Dates for Filing chart in April, allowing many foreign nationals to file earlier than expected and obtain benefits such as work permits (EAD) and travel authorization (Advance Parole). This creates an important filing opportunity, especially for applicants from countries other than India and China, where backlogs still exist but continue to move forward gradually. Those with priority dates earlier than the Dates for Filing cutoffs should act quickly, as these windows can change in future visa bulletins. Overall, the April bulletin reflects strong progress in employment-based immigration and provides a valuable chance for eligible applicants to move one step closer to obtaining their green card.
Sincerely,
Keshab Raj Seadie, Esq.
Law Offices of Keshab Raj Seadie, P.C. Disclaimer: This newsletter is intended for informational purposes only and does not constitute legal advice. Always consult an attorney for personalized advice.
