H-1B visa
The H-1B is a classification of non-immigrant visa in the United States that allows U.S. employers to hire foreign workers in specialty occupations, as well as fashion models, or persons who are engaged in Department of Defense projects who meet certain conditions. The regulation and implementation of visa programs are carried out by the United States Citizenship and Immigration Services, an agency within the United States Department of Homeland Security. Foreign nationals may have H-1B status while present in the United States, and may or may not have a physical H-1B visa stamp.
INA section 101, codified at 8 USC 1184 defines "specialty occupation" as an occupation that requires
- theoretical and practical application of a body of highly specialized knowledge, and
- attainment of a bachelor's degree or higher degree in the specific specialty as a minimum for entry into the occupation in the United States.
In 2019, the USCIS estimated there were 583,420 foreign nationals on H-1B visas in the United States. Between 1991 and 2022, the number of H-1B visas issued quadrupled. 265,777 H-1B visas were approved in 2022, the second-largest category of visa in terms of the number of foreign workers after the 310,676 H-2A visas issued to temporary, seasonal, agriculture workers.
H-1B visas have been politically controversial, with various actors seeking to expand or restrict the visa program. Studies have shown H-1B visas can lead to lower wages for competing workers, but that H-1B visas have had welfare-improving effects for Americans, leading to significant overall wage gains, lower consumer prices, greater innovation, and greater total factor productivity growth.
In 2025, the Trump administration imposed a $100,000 fee for filing for an H-1B visa starting September 2025 with exemptions for change of status, including those who are currently in US on F1 OPT.
Eligibility and application process
The H-1B visa is a non-immigrant visa in the United States that allows employers to hire foreign workers in specialty occupations, has an annual cap on the number of issued visas, and requires employers to submit paperwork that ensures compliance with various provisions of the law authorizing the visa.Specialty occupation
H-1B visas, as defined by United States Code, are those jobs that require a "theoretical and practical application of a body of highly specialized knowledge" and a bachelor's degree or higher or the equivalent experience. In order to determine which jobs qualify under the law, the USCIS works with the Department of Labor and its Standard Occupational Classification database to determine a list of specific occupations.Employment
To maintain H-1B visa status, visa holders must maintain employment with their sponsoring employer. If employment ends, the individual must either leave the U.S., seek a change of status, or obtain a new H-1B sponsorship. As of 2017, USCIS implemented a grace period of up to 60 days following employment termination, during which the individual may remain in the United States to seek new employment or file for a change of status.Duration of status
The duration of stay for an H-1B visa holder is typically six years. In 2000, some exemptions were added to increase the length of stay for some visa holders:- Permanent Residency Applications: If the visa holder has filed a Form I-140 or a Permanent Labor Certification before the sixth year of having an H-1B visa, they may extend their H-1B status in one-year increments until the government decides whether to grant permanent residency status.
- Priority Date Delays: If an approved I-140 petition exists but the applicant cannot proceed with the green card process due to a backlog, they may be eligible for a three-year extension.
- Department of Defense Projects: H-1B holders working on specific Department of Defense projects may extend their visa up to ten years.
After six years, H-1B holders who have not obtained permanent residency must spend one year outside the U.S. before reapplying for another H-1B visa, unless they qualify for an extension under the exceptions mentioned above. Visa holders may change to a job in a specialized occupation other than the one they were approved for in their initial application providing their new job is considered a specialized occupation and that their employment is officially sponsored by their new employer.
Electronic registration process and lottery
USCIS uses an electronic registration system and lottery process to manage applications. Effective February 27, 2026, USCIS will select H-1B visa applicants using a system that makes it more likely that highly paid workers will receive H-1B visas. Workers will be classified into one of four levels based on the offered wage for their job and location of employment. The highest level will be entered into the lottery four times, the next highest level will be entered three times, the next highest level will be entered into the lottery two times, and the lowest level will be entered once.American employers of H-1B workers must create an account on the USCIS online portal. This account enables them to submit registrations for prospective beneficiaries during the designated registration period.
USCIS announces dates for the registration period each fiscal year, typically in March. As of September 21, 2025, the registration fee is $100,000 per beneficiary. This fee is non-refundable and must be paid at the time of registration. Employers provide basic information about their company and each prospective beneficiary. USCIS states the streamlined process reduces the administrative burden compared to submitting full petitions initially.
The annual H-1B season officially starts in March of each year, when petitioners are allowed to register electronically for their applicant. If more registrations are submitted there will be a random selection, also called an H-1B lottery. After the registration period closes, USCIS conducts the lottery and notifies selected registrants. Employers with selected registrations have a limited period, typically 90 days, to submit completed H-1B petitions for their beneficiaries. The earliest date for filing these petitions is usually April 1.
During the 2024 fiscal-year lottery, there were 758,994 eligible electronic registrations and 110,791 people selected for an H-1B visa.
Selected registrants can begin filing their Labor Condition Application with the Department of Labor on April 1. It allows a six-month window before the employee start date on October 1.
USCIS implements measures to prevent fraud and abuse in the registration process, including a beneficiary-specific selection process to prevent multiple registrations for the same individual by different employers. These measures aim to ensure a fair selection process.
In March 2017, a federal judge in Oregon dismissed a lawsuit challenging the H-1B visa lottery system, granting summary judgment in favor of USCIS, applying Chevron deference. The court's ruling acknowledged USCIS's discretion in implementing this system to address the overwhelming number of petitions received each year.
Labor Condition Application
Before an employer can hire a foreign worker under the H-1B visa program, the employer must submit a Labor Condition Application to the U.S. Department of Labor for certification.The LCA ensures the employment of H-1B workers will not harm the wages or working conditions of U.S. workers in similar roles.
The LCA is designed to protect both U.S. and foreign workers by setting standards for wages and working conditions. Employers are prohibited from using the H-1B program to replace U.S. workers during labor disputes or to exploit foreign workers by offering substandard wages. Employers must keep detailed public records, making LCAs available for inspection by the Labor Department and members of the public upon request. The required forms to fulfill this requirement are Forms ETA-9035 and 9035. The Labor Department has different requirements for workers who are dependent on H-1B visa workers.
Employers hiring H-1B visa workers must:
According to additional rules for employers who are dependent upon H-1B workers or are willful violators of the H-1B rules:
Additional rules apply to employers who are dependent or who have violated rules with the Department of Labor in the past. In 2025, the Department of Labor launched Project Firewall, a targeted H-1B enforcement for investigating employers suspected of program abuse. The program allows the Secretary of Labor to certify investigations based on “reasonable cause” and coordinates with other federal agencies to detect underpayment, misrepresentation, and improper job arrangements.
Maintaining status
Taxation of H-1B visa holders
H-1B visa holders are taxed based on residency status under the Substantial Presence Test. Those present in the U.S. for at least 183 weighted days over three years are resident aliens and taxed on worldwide income. Others are nonresident aliens, taxed only on U.S.-sourced income.H-1B workers must pay Social Security and Medicare taxes, unless exempt under a Totalization Agreement. As such, visa holders may be eligible for receiving Social Security benefits upon retirement should the individual have enough credits and not barred by any totalization agreements with their home country. Employers also pay federal unemployment tax on their wages.
For tax filing, nonresidents use Form 1040-NR, while residents file Form 1040. Dual-status taxpayers must file specialized returns.
H-1B holders who qualify for tax treaty benefits must file Form 8833, with additional forms for specific exemptions. Ensuring compliance with tax classification and reporting prevents penalties.