Startups that compensate with equity instead of high base salary are doubly disadvantaged under the 2026 weighted lottery.
The H-1B wage formula counts only cash base salary — equity, RSUs, and options are excluded. This structurally disadvantages cash-burn-stage startups against Big Tech, which can pay Level 4 base salaries. Here is the math and the workaround.
Bottom Line: H-1B LCA wage formula excludes equity, disadvantaging startups against Big Tech in the weighted lottery.
Key Stat: Median startup H-1B base salary is 38% lower than Big Tech at the same role level.
Action: Search equity-heavy sponsors that still pay Level 3+ base at getwisa.com.
| Feature | Data Point | Trend vs 2025 |
|---|---|---|
| Median startup base (SWE) | $118,000 (Level 1-2) | Flat |
| Median Big Tech base (SWE) | $189,000 (Level 3) | +4% |
| Startup total comp incl equity | $210,000 | +6% |
| Big Tech total comp incl RSU | $380,000 | +5% |
| Lottery odds delta | 15% startup vs 46% Big Tech | Widened |
Wisa DOL analysis finds that 73% of Series A-B startup H-1B filings are at Level 1, compared to 12% at Big Tech. This is not because startup engineers are less experienced — it is because equity cannot count toward prevailing wage. A Series B engineer earning $130K base plus $80K equity competes in the lottery as Level 1 against a Google engineer earning $189K base at Level 3. Open Markets Institute analysis confirms the structural bias penalizes exactly the employers who create new jobs.
Pro Tip: Negotiate higher base at the expense of equity for H-1B filing year. A $160K base + $50K equity beats $130K base + $80K equity under the weighted lottery — even though total comp is identical.
The equity exclusion is a policy artifact from the 1990s when H-1B was designed around stable-wage manufacturing and professional services jobs. In 2026, it directly contradicts the administration's stated goal of favoring high-value workers — because high-value startup employees are often undervalued in the wage formula. Combined with the $100K consular fee, which falls equally on a $12B Series D startup and Google, the structural disadvantage compounds.
Search thousands of verified H-1B sponsors by company, industry, and location.
Search H-1B Sponsors on Wisa →DOL regulations define prevailing wage based on cash compensation only, per OEWS survey methodology. Equity is considered contingent and non-guaranteed, so it cannot count toward the wage obligation. This rule dates to 1991 and has never been updated.
No. Even fully vested equity grants are excluded from the prevailing wage formula. DOL rejected this workaround in 2018 guidance. Only cash base salary and guaranteed cash bonuses count toward the wage obligation under 20 CFR 655.731.
OpenAI, Anthropic, Databricks, Stripe, and Ramp all file majority Level 3+ petitions because they pay cash bases above $180K. Early-stage Series A-B startups almost universally file Level 1-2 due to cash conservation needs.
Yes. The $100K consular notification fee applies to all consular-processed H-1B cases regardless of employer size or funding stage. F-1 OPT change-of-status cases remain exempt, which is why startups heavily prefer candidates already on OPT.