What Is the H-1B Visa?
The H-1B is a nonimmigrant work visa for specialty occupation workers — jobs requiring at least a bachelor's degree or equivalent in a specific field. It is the primary pathway for international talent with U.S. college degrees to work long-term in the United States.
The H-1B has two annual caps: 65,000 regular slots and 20,000 additional slots for applicants with a U.S. master's degree or higher (the "master's cap"). Each year, USCIS conducts an electronic lottery in March to allocate these spots among typically 400,000–500,000 registrations received.
FY2025 at a glance: USCIS received 479,953 registrations for ~85,000 cap-subject spots — a selection rate of roughly 14–15%. Registration for FY2026 ran March 7–21, 2025 with results announced by March 31, 2025. FY2027 registration window is expected March 2026.
Key characteristics of the H-1B:
- Employer-sponsored — unlike EB-1A or O-1A, there is no self-petition option for standard H-1B
- Subject to annual cap unless working for a cap-exempt employer (university, nonprofit research org, government agency)
- Dual intent allowed — you can simultaneously pursue a green card while on H-1B
- Portability available — once in H-1B status, you can change employers without losing status
- 6-year maximum initial stay; extensions beyond 6 years available with approved I-140 and visa number backlog
What Are the H-1B Eligibility Requirements?
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To qualify for an H-1B visa, both the position and the beneficiary must meet specific criteria. USCIS evaluates whether the job truly requires a degree and whether the individual is genuinely qualified.
Position Requirements
- The job must require a bachelor's degree or higher in a specific specialty field
- The degree requirement must be normal for the industry — USCIS compares the job to how other employers in the same field advertise the position
- The job duties must involve complex or specialized knowledge that is theoretical and analytical
Beneficiary Requirements
- A bachelor's degree or higher in a directly related field, OR
- 12 years of progressive work experience can substitute for each year of college (so 3 years experience = 1 year of college for substitution purposes)
- Foreign degrees must be evaluated for U.S. equivalency by a credential evaluation service
- Licensing may be required for certain professions (medicine, law, engineering)
Degree Substitution Rules
USCIS allows employers to substitute experience for education — typically, one year of professional experience for each year of college. So a bachelor's degree (4 years) can be satisfied with a combination of a 2-year associate degree plus 6 years of progressive experience. Letters from previous employers documenting the nature and duration of experience are required.
Common Eligible Occupations
| Field | Typical Degree | Eligible |
|---|---|---|
| Software Engineering / Computer Science | BS Computer Science or equivalent | ✓ Yes |
| Data Science / Machine Learning | BS/MS Computer Science, Statistics, Mathematics | ✓ Yes |
| Electrical / Mechanical Engineering | BS Engineering or equivalent | ✓ Yes |
| Finance / Financial Analysis | BS Finance, Economics, Accounting | ✓ Yes |
| Marketing / Business Administration | BS Business, Marketing (with strong evidence) | ✓ Yes (scrutinized) |
| General Business Administration | Any degree | ✗ Usually not |
| Sales / Customer Service | Any degree | ✗ Not eligible |
Important: Not every job with "Engineer" or "Analyst" in the title qualifies. USCIS applies the "specialty occupation" test rigidly — administrative, supervisory, and general business roles frequently fail. A detailed job description and expert evaluation are essential before filing.
How Does the H-1B Cap and Lottery Work?
Every year, the H-1B cap lottery determines which registered beneficiaries receive the opportunity to file a full petition. Understanding this process is critical — the registration lottery is the single biggest bottleneck for most H-1B applicants.
How the Two-Round Lottery Works
- Round 1 — Master's Degree Cap (up to 20,000 selections)
USCIS first selects registrations from the pool of beneficiaries with a qualifying U.S. master's degree or higher. Those not selected in this round automatically advance to Round 2. - Round 2 — Regular Cap (up to 65,000 selections)
All remaining registrations — master's degree holders who weren't selected plus all regular registrations — are entered into a single lottery pool for the 65,000 regular cap spots.
Master's degree holders have an edge. Because they get two chances (master's pool first, then general pool), aggregate selection rates for U.S. master's degree holders historically exceed those for bachelor's degree holders. The advantage is real but has narrowed as overall registrations grew.
FY2025–FY2027 Cap Calendar
| Milestone | FY2025 Date | FY2026 Date (est.) | Notes |
|---|---|---|---|
| USCIS announces registration window | Feb 2025 | Feb 2026 | Check uscis.gov for exact dates |
| Electronic registration opens | Mar 7, 2025 | Mar 2026 | $10/beneficiary; employer or attorney files via myUSCIS |
| Registration window closes | Mar 21, 2025 | Mar 21, 2026 | Typically 2-week window; late submissions not accepted |
| Lottery results released | Mar 31, 2025 | Mar 31, 2026 | Emails via myUSCIS; check online portal |
| Petition filing window (90 days) | Apr–Jun 2025 | Apr–Jun 2026 | Employer must file I-129 within 90 days of selection |
| Earliest H-1B start date | Oct 1, 2025 | Oct 1, 2026 | All approved H-1Bs become effective October 1 |
What Happens If You're Selected
Selection in the lottery is not the same as an approved visa — it simply means the employer may file the I-129 petition during the 90-day window. The employer must obtain a certified LCA, prepare and file I-129 with USCIS, pay all filing fees, and include all required supporting documentation. If the petition is not filed within 90 days of selection, the selection is forfeited and cannot be recovered.
Multiple registrations: If a company registers the same beneficiary for multiple positions in the same fiscal year, all of those registrations are voided. Employers who engage in this practice harm their own employees' chances.
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What Are the H-1B Prevailing Wage Requirements?
Every H-1B employer must pay at least the prevailing wage — the average wage for the occupation in the geographic area of employment, as determined by the Department of Labor. This is a statutory requirement and a common point of scrutiny in H-1B audits and RFEs.
The Four Wage Levels
DOL's Foreign Labor Certification Data Center classifies wages into four levels based on percentiles within the occupation's wage distribution for the specific geographic area:
| Level | Percentile Range | Description | Typical Experience | Risk Flag |
|---|---|---|---|---|
| Level I | 0–34th percentile | Entry-level — basic understanding of field | 0–2 years | USCIS scrutinizes Level I for senior positions |
| Level II | 35–50th percentile | Qualified — solid grasp of field | 2–4 years | Most common for entry-level degree holders |
| Level III | 51–75th percentile | Experienced — fully competent, independent | 5–7 years | Reasonable for senior roles with degree |
| Level IV | 76th+ percentile | Fully competent — expert level | 8+ years | Typically for leading/managerial roles |
Finding the Prevailing Wage for Your Position
Go to FLCDataCenter.com (DOL's Foreign Labor Certification Data Center). Enter your occupation code (O*NET or SOC code), geographic area of employment, and it will return all four wage levels for that location. The employer must pay at least the Level I wage at minimum — but the offered wage must also reflect the actual duties and qualifications.
Actual Wage vs. Prevailing Wage
The employer must pay the greater of the prevailing wage for the occupation and location, OR the actual wage paid to other employees in the same classification at the worksite. This dual requirement prevents employers from undercutting existing U.S. workers' wages.
Wage level mismatch is a top RFE reason. If a position is posted as "5 years experience required" but the LCA lists Level I wages, USCIS will question whether the wage level accurately reflects the job requirements. Ensure the O*NET occupational classification and the actual job duties are consistent.
2025 DOL Wage Level Reforms
In 2025, the Department of Labor published a rule to update prevailing wage methodology, raising the Level I and Level II thresholds significantly. This rule was challenged in federal court and its status should be verified with an immigration attorney before filing.
For HR and legal teams: If you're managing an H-1B workforce, run our prevailing wage audit guide before the new floors take effect. Includes step-by-step instructions, gap analysis table, and compliance checklist.
How Does H-1B Employer Sponsorship Work Step by Step?
The H-1B is employer-sponsored — the employer, not the employee, initiates and pays for the process. Here is what the employer and their attorney must do.
- Step 1: Determine Eligibility and Prevailing Wage
The employer confirms the job qualifies as a specialty occupation, then obtains the prevailing wage determination from FLCDataCenter.com for the specific occupation code and work location. - Step 2: Draft and File the LCA (Labor Condition Application)
Using Form ETA-9035, the employer makes four attestations to DOL: pay at least the prevailing wage, no strike/lockout, notice was provided to employees, no U.S. worker displacement within 90 days. DOL typically certifies within 7 business days. An uncertified LCA cannot be used in the I-129 filing. - Step 3: Register for the H-1B Lottery (March)
During the USCIS registration window (typically early-to-mid March), the employer or their attorney files an electronic registration for each beneficiary via myUSCIS. The $10 registration fee is paid by the employer. This is not a petition — it is only eligibility to file. - Step 4: File I-129 Petition (April–June)
If selected, the employer has exactly 90 days to file the complete I-129 package including certified LCA, supporting documentation (degree, experience letters, job description), and all filing fees. Standard processing: 2–6 months. Premium Processing ($2,500, Form I-907): 15 business days. - Step 5: Visa Interview (for beneficiaries abroad)
If the beneficiary is outside the U.S., they must schedule a visa interview at a U.S. consulate after I-129 approval. Canadian citizens generally do not need a visa stamp to enter in H-1B status.
A dedicated step-by-step guide for HR teams and hiring managers covering LCA filing, prevailing wage determination, lottery registration, I-129 preparation, and total employer cost breakdown. Read the employer sponsorship guide →
October 1 start date: All new H-1B approvals for cap-subject cases become effective on October 1 — the start of the federal fiscal year — regardless of when the petition was approved. There is typically a gap between petition approval and the H-1B start date.
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H-1B Employer Costs & Fees
The employer pays all government filing fees for the H-1B petition. Here is a breakdown of typical first-year costs.
| Fee Component | Amount | Who Pays | Notes |
|---|---|---|---|
| I-129 Petition Filing Fee | $460 | Employer | USCIS filing fee |
| ACWIA Training Fee (26+ employees) | $1,500 | Employer | $750 for employers with 25 or fewer employees |
| Fraud Prevention and Detection Fee | $500 | Employer | One-time fee for H-1B and L-1 petitions |
| Premium Processing (I-907) | $2,500 | Employer (optional) | 15 business day guarantee |
| Attorney Fees | $1,500–$5,000 | Employer | Varies by firm and complexity |
| Total (without Premium or attorney) | $2,460 | ||
| Total (with Premium + mid-range attorney) | $8,460–$11,960 |
Note on who pays: The employer is legally required to pay all government filing fees and ACWIA fees. Asking the employee to reimburse these costs is a wage and hour violation in most states. Attorney fees may depend on employment agreement terms.
H-1B to Green Card: The Employment-Based Path
Most H-1B holders eventually pursue a green card through employment-based immigration. The process is sequential and can take many years, particularly for applicants from high-demand countries like India and China due to per-country visa number limits.
- Step 1: PERM Labor Certification
The employer tests the labor market by advertising the position and confirming no qualified U.S. workers are available. A prevailing wage determination is obtained, and the application is filed with DOL. If audited, PERM can take an additional 12–18 months. Estimated: 8–18 months. - Step 2: I-140 Immigrant Petition
After PERM certification, the employer files Form I-140 with USCIS. This establishes the beneficiary's eligibility for employment-based immigration. Premium Processing available. Estimated: 4–8 months standard, 15 days with Premium. - Step 3: I-485 Adjustment of Status
Once the I-140 is approved and a visa number is available (based on the Visa Bulletin), the applicant files Form I-485 to adjust status to permanent resident. Estimated: 12–36+ months depending on category and country.
Why H-1B Duration Depends on Your Country of Birth
Each country gets a maximum of 7% of employment-based green cards per year. For India and China — countries with very high demand — the backlog means applicants may wait 10–20+ years between I-140 approval and visa number availability. For everyone else, the process typically takes 2–5 years from start to green card.
AC21: Portability and H-1B Extensions
Once your I-140 is approved but a visa number isn't available (country backlog), AC21 allows you to change employers without losing your place in the queue, and extend H-1B beyond the 6-year maximum in 1-year increments. This is critical for Indian nationals waiting on the backlog.
Cap-Exempt H-1B and Alternative Pathways
If you are not selected in the cap lottery, you are not necessarily blocked from H-1B status. Understanding cap-exempt employment and alternative visa options is essential for a comprehensive immigration strategy.
Cap-Exempt H-1B Employers
H-1B petitions filed by cap-exempt employers are not subject to the annual cap lottery. These employers can file H-1B petitions year-round, outside the March registration window.
Universities
Any accredited U.S. college or university. Includes tenure-track and non-tenure-track positions. Research universities qualify for the full cap-exempt benefit.
Nonprofit Research Organizations
Organizations whose primary mission is conducting research. Includes research institutes, government labs, and independent nonprofit research centers.
Government Research Agencies
Federal, state, or local government agencies engaged in research. Examples include NIH, NASA, national laboratories, and government-affiliated research institutions.
Strategic use of cap-exempt employment: Working for a cap-exempt employer allows you to accumulate H-1B time beyond the initial 6 years. Additionally, if you previously held H-1B status with a cap-exempt employer, you may be able to return to cap-subject H-1B employment without going through the lottery again.
If the H-1B Cap Is Not an Option
| Visa | Key Advantage | Requirement | Annual Cap |
|---|---|---|---|
| O-1A | No cap; self-petition allowed | Extraordinary ability (3+ criteria) | None |
| L-1A/B | No cap; intra-company transfer | 1 year with qualifying employer abroad | None |
| F-1 OPT/STEM OPT | No cap; employer-sponsored work auth. | Enrolled in qualifying U.S. degree program | None |
| E-2 | No cap; can be indefinite | Substantial investment + treaty country | None |
| E-3 (Australia) | No cap for Australian nationals | Specialty occupation + Australian citizen | 10,500/year (rarely hit) |
| J-1 | Research/training opportunities | Program sponsorship required | None (varies by category) |
Read the O-1A guide → F-1 OPT Eligibility Analyzer → E-3 Australia Guide →
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Related Guides
H-1B Lottery Odds Guide
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