US immigration law and EU pay law pulled in opposite directions this month, and both hit companies that hire across borders. The H-1B weighted lottery now favors high earners, which changes who your US entity can realistically sponsor. Meanwhile, the EU Pay Transparency Directive was meant to be national law in every member state by June 7. It is not. Only four countries made the deadline. So if you employ people in the US, the Netherlands, or Germany, three separate rule changes land on your desk this week. Here is what moved, and what to do before your next hire.

The H-1B Weighted Lottery Rewrites US Hiring Odds

On February 27, 2026, a new H-1B selection rule took effect. Instead of a random draw, the H-1B weighted lottery gives higher-paid roles more entries. A Level 4 wage earns four entries. Level 3 gets three, Level 2 gets two, and Level 1 gets one. (Source: Federal Register) The rule applies from the FY2027 cap registration season. (Source: USCIS)

What changed in the H-1B weighted lottery

The math is blunt. A senior engineer on a Level 4 salary is now four times more likely to be selected than an entry-level candidate on Level 1. So early-career and lower-wage sponsorships get squeezed hard. There is a second cost too. A $100,000 fee still applies to many H-1B petitions for workers outside the US. A Massachusetts federal court struck that fee down on June 8, 2026, and called it an unlawful tax. But the government appealed, and a stay put the fee back in force while the appeal runs. (Source: Ogletree Deakins) For now, budget as if it applies.

Why it matters for founders

If your US entity planned to sponsor junior talent, rethink it. The weighted lottery rewards seniority and salary. For example, a 30-person startup hiring a new-grad analyst faces long odds now. A staff-level hire has a real shot. Enforcement rose in parallel. ICE narrowed what counts as a fixable I-9 error in March 2026, and civil penalties now run from $288 to $28,619 per violation. (Source: Morgan Lewis) Audits are running at roughly ten times the 2024 rate.

What to do before the next cap season

First, map every planned US hire to a wage level before registration opens. Second, front-load the $100,000 fee in your Q3 budget for any candidate who needs consular processing. Third, run an internal I-9 audit now, because there is no grace period to fix mistakes. If you are weighing sponsorship against other routes, compare the true cost in our guide to hiring in the United States.

EU Pay Transparency Deadline Slips in Most Member States

The EU Pay Transparency Directive carried a hard transposition deadline of June 7, 2026. Most countries missed it. Only Slovakia, Italy, Lithuania, and Malta wrote the rules into national law on time. (Source: Littler) Germany, France, Spain, the Netherlands, Sweden, and Denmark all slipped, and several now target January 1, 2027. (Source: Morgan Lewis)

This creates a patchwork, not a pause. In countries that have not transposed, the core pay-reporting duties do not yet bind private employers. However, public-sector staff can already rely on the directive directly, and the Commission can open infringement cases against late states. Unlike the H-1B weighted lottery, where the rule is fixed and national, EU pay transparency now varies country by country. So if you employ people across several EU states, you cannot run one policy. Check each country’s status before you publish a salary band. Start with the rules where you hire, for example the employment laws in the Netherlands.

Netherlands: Self-Employment Test Goes Live July 1

The Netherlands moved first on enforcement. From July 1, 2026, the VBAR Act creates a legal presumption of employment for any contractor paid under €36 per hour. (Source: Kennedy Van der Laan) Below that rate, the worker is treated as an employee unless you prove otherwise. Above it, a broader test weighs control, integration, and whether the person runs a real business. For example, if you use Dutch freelancers for support or ops at €30 an hour, that arrangement is now presumed to be employment. As a result, you may owe payroll tax and benefits. Reprice or reclassify before July payroll. We covered the bill’s path in our Netherlands worker classification update, and you can compare approaches in our guide to paying contractors compliantly.

Germany: One Colleague Is Now Enough to Prove a Pay Gap

The H-1B weighted lottery is about who gets in. Germany’s fight is about what they get paid. Its top labor court raised the stakes before the directive even lands. On October 23, 2025, the Federal Labour Court ruled that a woman who earns less than a single better-paid male colleague doing equal work can presume pay discrimination. (Source: Freshfields) The employer must then justify the gap. The court rejected any extra “more likely than not” threshold. This matters because the ruling covers the full package, not just base salary. Bonuses, pension building blocks, and long-term incentives all count. So a German pay-equity claim can reach deep into your comp structure. Meanwhile the EU directive will add a burden-of-proof reversal and pay reporting for firms with 100 or more staff. If you run German payroll, audit comparators now. Our guide to payroll in Germany covers the basics.

Quick Hits

• United Kingdom: Day-one paternity leave and stronger statutory sick pay took effect in April 2026 under the Employment Rights Act 2025, and the new Fair Work Agency now enforces pay rules. Limits on fire-and-rehire move to January 2027. (Source: GOV.UK)
• Maine (US): Wage-transparency law LD 54 requires pay ranges in job postings for employers with 10 or more staff, effective July 29, 2026. (Source: Fisher Phillips)

Action Items This Week

If you sponsor US visas: The H-1B weighted lottery rewards salary, so map every planned hire to a wage level before FY2027 registration, and budget the $100,000 fee for any candidate who needs consular processing. Run an I-9 self-audit this week, because there is no correction window now.

If you employ in the EU: Check each country’s pay transparency status before you publish salary bands. Treat Germany and France as delayed, and treat Italy, Slovakia, Lithuania, and Malta as already in force.

If you use Dutch freelancers: Reclassify or reprice anyone under €36 per hour before July payroll, or prepare to defend their self-employed status.

If you run German payroll: Review pay comparators across your full comp package, including bonuses and incentives, before a single-comparator claim surfaces.

These changes share one theme. Where you hire now decides how much compliance work you carry. Asanify’s Global HRMS and EOR handle multi-country payroll, worker classification, and pay rules in one place, including H-1B weighted lottery budgeting and EU pay reporting. Worth a look if your team spans borders.

FAQ: H-1B Weighted Lottery and Global Pay Rules

What is the H-1B weighted lottery?
It is a US selection rule, effective February 27, 2026, that replaces the random H-1B draw. Higher-paid roles get more entries, up to four for the top wage level. It applies from the FY2027 cap season.

Does the $100,000 H-1B fee still apply?
Yes, for now. A federal court struck it down on June 8, 2026, but a stay reinstated it during the government’s appeal. It applies mainly to petitions for workers outside the US who need consular processing.

Is the EU Pay Transparency Directive in force everywhere?
No. Only four member states met the June 7, 2026 deadline. Large economies like Germany and France are delayed, several to January 2027. Private employers there are not yet bound, but public-sector staff can rely on the directive directly.

Do we need an EOR to hire in the Netherlands or Germany?
It depends on headcount and risk. For one or two hires, an EOR removes classification and payroll risk, which now carries real penalties. At larger scale, a local entity may cost less. Asanify’s Global HRMS helps you compare both.

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.