H-1B Visa (US)
A non-immigrant US work visa that allows American employers to temporarily hire foreign workers in specialty occupations requiring at least a bachelor's degree or equivalent in a specific field, subject to an annual cap of 85,000 new visas.
What Is an H-1B Visa?
Key Takeaways
- ✓The H-1B is a non-immigrant visa that lets US employers hire foreign professionals in specialty occupations. The role must require at least a bachelor's degree in a specific field.
- ✓There's an annual cap of 85,000 new H-1B visas: 65,000 for the general pool and 20,000 reserved for applicants with a US master's degree or higher.
- ✓H-1B workers can stay for up to 6 years (3-year initial period plus one renewal). Extensions beyond 6 years are possible if a green card application is pending.
- ✓The employer, not the employee, sponsors the H-1B petition. The employer must pay at least the prevailing wage for the occupation and work location.
- ✓USCIS uses a lottery system to select petitions when registrations exceed the cap, which has happened every year since FY2014.
The H-1B visa is the primary way US companies hire skilled foreign professionals. It covers specialty occupations like software engineering, finance, healthcare, architecture, and research. The job itself must require specialized knowledge and at least a bachelor's degree in a directly related field. You can't use an H-1B to fill a general business role that any educated person could perform. The process starts with the employer, not the worker. The company files a Labor Condition Application (LCA) with the Department of Labor, then submits an H-1B petition to USCIS. If the annual cap hasn't been reached, USCIS adjudicates the petition. If it has, the employer must first win a spot through the registration lottery. For HR teams, the H-1B isn't just an immigration form. It's a workforce planning tool that affects hiring timelines, budgets, retention strategies, and compliance obligations. Getting it wrong means lost talent, wasted legal fees, and potential penalties from the DOL or USCIS.
H-1B Eligibility Requirements
Both the employer and the foreign worker must meet specific criteria. The visa is employer-specific, meaning the worker can only work for the sponsoring company in the approved role.
Employer requirements
The employer must have a legitimate specialty occupation position available. They need to file a certified LCA with the DOL, attesting they'll pay the higher of the actual wage (what they pay similar workers) or the prevailing wage (DOL-determined rate for the occupation and area). The employer must also attest that hiring the H-1B worker won't adversely affect the working conditions of similarly employed US workers. Companies classified as H-1B dependent (15%+ of workforce on H-1Bs) face additional attestation requirements, including demonstrating they tried to recruit US workers first.
Worker requirements
The foreign worker must hold at least a US bachelor's degree or its foreign equivalent in a field directly related to the position. Three years of progressive work experience can substitute for each missing year of education. So someone with a two-year degree plus six years of relevant experience may qualify. Professional licenses required for the position (medical, legal, accounting) must also be obtained. The worker doesn't need to be in the US at the time of filing.
Specialty occupation criteria
USCIS evaluates whether the position itself qualifies as a specialty occupation using four criteria: the role normally requires a bachelor's degree, the degree requirement is common in the industry for similar positions, the employer normally requires a degree for the role, and the duties are so specialized that a degree is the minimum needed. Entry-level IT helpdesk positions and general business analyst roles have faced increased scrutiny and denials because USCIS doesn't always accept them as specialty occupations.
The H-1B Lottery and Registration Process
Since demand consistently exceeds the 85,000 cap, USCIS runs an annual lottery to select which petitions it will accept. The process changed significantly in FY2025 with beneficiary-centric selection.
Registration timeline
The process follows a strict annual calendar. Registration typically opens in early March for the fiscal year starting October 1. Employers submit electronic registrations (name, passport details, basic job info) with a $215 fee per beneficiary. The registration window lasts about two to three weeks. USCIS then runs the lottery and notifies selected registrants, usually by late March or April. Selected employers have 90 days to file the full H-1B petition.
Beneficiary-centric selection
Starting with FY2025, USCIS selects by unique beneficiary rather than by registration. Previously, a worker with registrations from five different employers had five lottery entries, giving them better odds than someone with one employer. Now each person gets one chance regardless of how many employers register them. This change was designed to address fraud and gaming where shell companies filed dozens of registrations for the same worker.
Selection odds
With nearly 780,000 registrations for FY2025 competing for 85,000 slots, the raw selection rate was roughly 11%. After deduplication under the beneficiary-centric system, the effective odds improved somewhat, but they still aren't in anyone's favor. Companies that need H-1B workers must have backup plans for when their candidates aren't selected.
H-1B Sponsorship Costs
H-1B sponsorship isn't cheap. Employers bear most costs, and federal rules prohibit passing many of these fees to the employee.
| Fee/Cost | Amount | Who Pays | Notes |
|---|---|---|---|
| Registration fee | $215 per beneficiary | Employer | Non-refundable, paid during registration window |
| Base filing fee (Form I-129) | $780 | Employer | Increased from $460 in April 2024 |
| ACWIA training fee | $750 or $1,500 | Employer | $750 for companies with 25 or fewer employees, $1,500 for 26+ |
| Fraud prevention and detection fee | $500 | Employer | Required for all initial H-1B petitions |
| Asylum Program fee | $600 or $300 | Employer | $600 for 25+ employees, $300 for fewer. New as of April 2024 |
| Premium processing (optional) | $2,805 | Employer or employee | Guarantees 15-business-day adjudication |
| Attorney fees | $3,000 to $6,000+ | Employer | Varies by firm and case complexity |
| Prevailing wage determination | Free | N/A | Filed with DOL, no fee but takes 6-8 months without premium |
Employer Compliance Obligations
Sponsoring an H-1B worker creates ongoing compliance requirements that last for the duration of employment. These aren't one-time filing obligations.
- Pay the H-1B worker at least the required wage (higher of actual or prevailing wage) for the entire period of employment. Benching an H-1B worker without pay violates DOL regulations even if there's no work available.
- Maintain a public access file at the worksite containing the LCA, prevailing wage documentation, and evidence of wage compliance. This file must be available for public inspection within one business day of a request.
- Notify USCIS within days if the H-1B worker's employment is terminated, their job duties change materially, or they transfer to a different work location outside the metropolitan statistical area listed on the LCA.
- Cover the cost of reasonable return transportation to the worker's home country if the employer terminates the relationship before the H-1B period expires.
- Don't require H-1B workers to pay penalty fees for early termination. Non-compete agreements that would effectively trap workers in positions they want to leave face legal challenges.
- File an amended or new H-1B petition for any material change in job duties, work location, or terms of employment.
H-1B Portability and Extensions
H-1B holders aren't permanently tied to one employer, but changing jobs or extending status requires careful planning.
H-1B transfer (portability)
AC21 portability allows H-1B workers to start working for a new employer as soon as the new employer files an H-1B transfer petition. They don't need to wait for approval. This is a significant advantage for both employers and workers. The new employer must file a complete H-1B petition, but it doesn't count against the annual cap since the worker already holds H-1B status. The worker must have been in valid H-1B status at the time the new petition was filed and must not have worked without authorization.
Extensions beyond 6 years
Normally, H-1B status maxes out at 6 years. But two exceptions exist. Under AC21 Section 104(c), workers who have an approved I-140 (immigrant visa petition) can get one-year extensions indefinitely. Under AC21 Section 106(a), workers whose employer filed a PERM labor certification or I-140 at least 365 days before the H-1B expiration can get three-year extensions. These provisions exist because green card backlogs, particularly for Indian and Chinese nationals, can exceed 10 years.
H-1B Visa Statistics [2026]
Key data points that illustrate the current state of the H-1B program.
H-1B Best Practices for HR Teams
Managing H-1B sponsorship effectively requires planning that starts months (sometimes years) before the employee's start date.
- Start the process early. The H-1B timeline runs on an annual cycle with the registration window in March and the earliest start date in October. If you miss the window, you're waiting another year unless an exemption applies.
- Budget realistically. Between government fees, legal fees, and premium processing, expect to spend $8,000 to $15,000 per petition. Multiply that by your headcount projections.
- Have a backup plan for lottery losses. Consider O-1 visas for exceptional candidates, L-1 transfers for employees at overseas offices, or cap-exempt positions at universities and research institutions.
- Track all H-1B expiration dates centrally. Don't rely on employees to remind you. A lapsed status creates unauthorized employment issues that affect both the worker and the company.
- Train hiring managers on what they can and can't promise during interviews. Saying 'we'll sponsor your visa' before understanding the candidate's eligibility and the timeline creates retention problems.
- Coordinate H-1B sponsorship with green card planning. Workers who want to stay permanently need their green card process started well before the 6-year H-1B limit.
Frequently Asked Questions
Can an H-1B worker change employers?
What happens if an H-1B worker is laid off?
Can H-1B workers start a business or do freelance work?
Is there a minimum salary requirement for H-1B?
What's the difference between H-1B and H-1B1?
How long does the H-1B process take?
Written by Adithyan RK