H-1B Visa

The H-1B Visa is a pathway for non-immigrant workers to legally live and work in the United States in specialty occupations (with the possibility of permanent residency down the road). Citizenship and Immigration Services (USCIS) and the Department of Labor (DOL) oversee this process by ensuring prevailing wage and labor certification compliance. 

The H-1B visa was traditionally the go-to pathway for U.S. startups to bring in top global talent, especially engineers and specialists from countries like India and China. Today, however, founders and HR leaders face new hurdles – from the uncertainty of the H-1B Visa Lottery 2026 Cap to the steep $100,000 fee for foreign hires introduced under the presidential proclamation on September 19, 2025.

💡Good to Know: H-1B Visa Cap Reached (FY 2026)

USCIS confirmed on July 18, 2025, that both the 65,000 regular H-1B cap and the 20,000 U.S. advanced-degree (master’s) exemption cap have been met for Fiscal Year 2026.

See the announcement here. This means no new visa sponsorship until the H-1B visa lottery 2026 opens in March.

Key H-1B Visa Lottery Changes & Updates in 2025

• $100,000 Fee for New H-1B Petitions: A proclamation issued September 19, 2025 introduced a one-time $100,000 fee for new H-1B petitions filed from outside the U.S., effective September 21. It’s aimed to curb outsourcers and doesn’t apply to current H-1B holders or extensions.
• H-1B Modernization Rule: Starting January 17, 2025, new regulations defined what qualifies as a “specialty occupation” (job duties must closely align with the relevant degree). The changes also streamlined the process for F-1 students to transition to H-1B status, and generally tried to simplify employer requirements while strengthening oversight.
• Improved Lottery Odds: In FY 2026, H-1B registrations dropped to 336,000, which bumped the lottery selection rate up to 35%. That’s because the process now focuses on individual applicants instead of counting every registration separately.
• Entry Restrictions Post-Layoffs: A September 2025 proclamation restricted new H-1B entries for firms with recent U.S. layoffs, with over 1,700 denials in FY 2025 to prioritize local workers.
• Wage-Based Selection Proposal: In August 2025, the Department of Homeland Security (DHS) has proposed shifting part of the H-1B selection process to favor higher-wage job offers. This would rank applications by wage levels (based on DOL wage tiers) rather than a pure random lottery. If enacted, this could reshape how competitive the process becomes. 

H-1B Visa Program Changes​: H-1B Cap & Lottery Odds

The H-1B program issues 85,000 visas annually – 65,000 under the regular cap and 20,000 reserved for applicants holding a U.S. master’s degree or higher.  

Recent changes in registration behavior – such as fewer duplicate registrations and possibly policy shifts like stricter compliance checks –  have slightly improved the odds of selection, but demand still far exceeds supply. 

For instance, under the new beneficiary-centric registration system, the FY 2026 lottery saw odds rise to 35.3%, up from 21.8% the previous year.

At the same time, policy changes have added new hurdles. A September 19, 2025, proclamation introduced a $100,000 one-time fee for new H-1B petitions filed abroad. It also imposed stricter reviews for companies with recent U.S. layoffs – leading to more than 1,700 denials in FY 2025.

What This Means for Employers and Employees

The H-1B Visa Cap being reached means USCIS will not accept new cap-subject visa sponsorship petitions for FY 2026. However, employers can still pursue cap-exempt filings, including:

• Extensions for current H-1B status employees (from 3 to 6 years). 
• Changes to employment terms or conditions
• Transfers to new employers
• Requests for concurrent H-1B employment 
• The newly introduced $100,000 fee applies only to new abroad petitions, leaving existing H-1B status holders or ongoing petitions unaffected. 

H-1B Visa Eligibility & Requirements in 2025

Both employers and workers must meet certain requirements to qualify for the H-1B visa. Here are some of the key ones:

Employer Obligations:

• Offer a job that qualifies as a specialty occupation, meaning it requires at least a bachelor’s degree – like a software architect with cloud expertise.
• Adhere to the Department of Labor prevailing wage standards. These refer to the minimum wage rates set by the DOL that employers must pay non-immigrant workers on H-1B Visas for specialty occupations in specific geographic areas. For example, a software developer in New York City may require an annual wage of $ 130,000 or more.

📖 Did you know?

Employers are expected to match or exceed the prevailing wage to ensure pay is in line with average wages for similar roles among U.S. workers. To find this wage rate, employers can submit a request to the National Prevailing Wage Center (NPWC) (or oflc.pwd@dol.gov) or access other credible sources such as the OFLC Wage Search.

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• Secure a Labor Condition Application (LCA). This is a mandatory form that employers must file with the DOL. It confirms that the H-1B worker will be paid at or above the prevailing wage, that their employment won’t negatively affect U.S. workers’ conditions, and that there are no strikes or lockouts at the worksite..
• File Form I-129 with USCIS post-lottery, verifying a legitimate employer-employee relationship.
• Prepare for audits – non-compliance on H-1B status risks fines of $5,000-$10,000 per violation.

Worker / Beneficiary

• Have at least a bachelor’s degree (or the foreign equivalent, verified through an approved evaluation).
• Show that your skills match the role – for example, a senior cybersecurity role would typically require 5+ years of experience.
• If you’re already in the U.S., keep your legal status through OPT or CPT, and you may benefit from a cap-gap extension through October 1.

Costs, Fees, and Budgeting for H-1B Sponsorship

Here are typical costs & who generally covers what (as of FY 2025-2026):

How to Sponsor an H-1B Visa: Step-by-Step for Employers

Here’s a clear playbook employers can follow to navigate the process and stay compliant: 

Step 1: Verify Eligibility for the Job and Worker

Ensure the job is a specialty occupation, with duties tied to a specific degree field and specialized knowledge. Also, confirm that the worker has the credentials (degree or foreign equivalent). Lastly, ensure all documentation is in order.

Step 2: Obtain Labor Condition Application (LCA) Approval from DOL

Establish prevailing wage through the DOL’s Occupational Employment and Wage Statistics (OEW). Then, submit the Labor Condition Application (Form ETA-9035/9035E) through the DOL’s online FLAG system to certify you’ll meet the required obligations.

Step 3: Complete Electronic Registration and Enter the Lottery

Employers must register their potential H-1B workers during the USCIS registration window, which typically opens in March (for example, the FY 2026 lottery registration ran in March 2025). Only registered and selected beneficiaries may move to full petition filing.

H3: Step 4: File Form I-129 Petition with USCIS

If selected between April and June, file Form I-129 with your approved LCA. The base filing fee ranges from $780 to $1,385, plus a $500 fraud fee and, in some cases, a $4,000 ACWIA fee. Gather all documentation: degree/diploma (or evaluation), detailed job description, proof of employer-employee relationship, and intended worksites. Be prepared for possible RFEs, and consider a legal review to strengthen your case.

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Step 5: Worker Applies for a Visa and Enters the U.S.

Once the I-129 is approved, abroad beneficiaries can apply for the H-1B Visa stamp at a U.S. consulate via DS-160 . For new hires outside the U.S. (post-September 21, 2025), employers must pay the $100,000 one-time fee per petition to enable entry. 

This fee is triggered upon visa issuance and re-entry, not during USCIS processing, and applies only to cap-subject newcomers (exempt for extensions/transfers).

H-1B Alternatives for Global Employers

When the H-1B cap has been reached or the lottery process feels too uncertain, hiring globally via remote work, applying for other visa types, or using an Employer of Record (EOR) are powerful alternatives. Here are a few alternatives to the H-1B Visa to consider: 

• O-1 visa (for extraordinary ability): Caters to individuals demonstrating extraordinary ability in sciences, arts, education, business, athletics (O-1A), or motion pictures/television (O-1B). 
• L-1 visa (intra-company transfers): Ideal for multinational firms, the L-1 visa facilitates transferring executives, managers (L-1A), or employees with specialized knowledge (L-1B) from foreign affiliates to U.S. operations, bypassing the H-1B cap and lottery entirely.
• TN visa (for Canadian / Mexican nationals under USMCA): Offers streamlined entry for Canadian or Mexican professionals in over 60 listed occupations (such as engineers, scientists, accountants, and IT specialists), serving as a cap-free, lottery-free pathway for talent. 
• Remote and EOR / Global Employer Structures: U.S. firms can use remote hiring or an Employer of Record to bring on talent quickly from anywhere in the world. These approaches help bypass the H-1B lottery and cap limits, reduce the risks tied to immigration filings, and often lower upfront costs.

Secure Global Talent with Playroll

With the recent presidential proclamation imposing a $100,000 entry fee on new H-1B visa petitions for foreign nationals outside the U.S., the cost of bringing in talent via H-1B just skyrocketed. For U.S. tech, engineering, and service firms, this fee – on top of already high filing costs, cap lottery uncertainty, and regulatory risk – makes the traditional H-1B route increasingly expensive and unpredictable. 

That’s where cross-border hiring and partnering with an Employer of Record become powerful alternatives. Rather than paying the steep new entry fee and wrestling with immigration delays and cap limits, you can hire top talent abroad through an EOR like Playroll. The EOR handles local employment, payroll, compliance, taxes, and benefits on your behalf.  For roles that don’t require a physical U.S. presence, this option offers speed, cost-efficiency, and much lower risk.

Book a demo with Playroll to see how our EOR services simplify global hiring, so you can scale your team quickly – without the massive price tag.