In the current landscape, “business as usual” is a dangerous phrase for HR leadership. As we move through early 2026, the term “Policy-Exposed” has entered the corporate lexicon. It describes the gap between a company’s talent acquisition goals and the rapidly shifting mandates of U.S. immigration law.
At Klug Law Firm, we’ve seen that HR teams relying on 2024 assumptions are finding their talent pipelines stalled by new “weighted” selection rules, six-figure fees, and aggressive digital vetting.
Here is why your team needs to reassess its workforce strategy immediately.
1. The Death of the “Random” H-1B Lottery
For decades, the H-1B lottery was a game of pure chance. HR could “spray and pray,” entering every eligible candidate with a relatively equal statistical shot.
As of the FY 2027 cycle, that era is over. The new Wage-Weighted Selection rule has transformed the lottery into a tiered hierarchy. Selection is now prioritized based on the Department of Labor’s (DOL) four-tier wage levels.
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The Reality: A Level IV “Expert” registrant now receives four entries in the lottery, while a Level I “Entry” registrant receives only one.
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The Strategic Shift: HR can no longer treat all international candidates equally. You are policy-exposed if your recruitment strategy for entry-level roles doesn’t include a robust “Plan B” (such as O-1, TN, or E-3 visas), as their probability of selection has mathematically plummeted.
2. The $100,000 Budget “Shock”
The 2025 Presidential Proclamation introduced a $100,000 supplemental fee for certain new H-1B petitions. While this primarily targets “Consular Processing” (candidates currently outside the U.S.), the ripple effects are universal.
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The Reality: This fee has made global relocation significantly more expensive overnight.
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The Strategic Shift: High-performing HR teams are pivoting to a “Local-First” international strategy. By prioritizing F-1 students already in the U.S. on OPT/STEM OPT, companies can utilize the “Change of Status” process, which is typically exempt from this massive fee. If your recruiters aren’t vetting for U.S.-based international talent first, your 2026 budget is likely at risk.
3. The “Digital Identity” Compliance Trap
In 2026, a candidate’s LinkedIn profile isn’t just a marketing tool; it’s a compliance document. Under Executive Order 14161, the government has standardized “social media mining” during the visa adjudication process.
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The Reality: We are seeing a surge in Section 221(g) Administrative Processing holds. Why? Because a candidate’s LinkedIn job titles or dates don’t perfectly match the biographic data on their H-1B petition.
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The Strategic Shift: HR must bridge the gap between Recruitment and Legal. If your talent team isn’t auditing candidate social media for biographical consistency before the legal filing, you risk losing a key hire to a 90-day security hold.
4. Creative Solutions: When “Plan A” Fails
Being policy-exposed means having no recourse when the lottery results come back negative. At Klug Law Firm, we believe the “magic” happens when expertise meets creative problem-solving. For our clients, we explore various alternatives to help meet their talent needs.
Is Your Team Ready for the Audit?
Immigration is no longer just a “legal task”; it is a core pillar of workforce resilience. Don’t navigate these shifts alone. At Klug Law Firm, we combine elite legal skill with a caring, relationship-driven approach to ensure your workforce remains secure.