An H-1B visa is a U.S. work permit that enables employers to hire foreign professionals in specialty occupations requiring specialized knowledge and at least a bachelor’s degree.
When a company wants to hire a foreign worker with a specific skill set, it typically chooses to apply for an H-1B visa. The U.S. government issues H-1B visas (or one of its subcategories) to workers in specialty occupations.
The H-1B represents the most prominent work visa category in the U.S. It’s intended to fill crucial skill gaps in various professional fields such as technology, engineering, medicine, and sciences. This temporary work authorization initially grants foreign talent a three-year stay in the U.S., with the possibility of an extension of up to six years.
Read on to learn more about navigating the H1-B visa process for international employees hoping to live and work in the U.S.
Who needs a visa—and what type do they need?
Non-U.S. citizens need a visa to legally live and work in the United States. Employers must determine which visa type is correct for their prospective employees.
The two most commonly used types of U.S.-issued visas are immigrant and nonimmigrant. However, these classifications have many different subcategories that apply to various needs.
Immigrant visas
Immigrant visas allow foreign nationals to remain in the U.S. indefinitely. Typically, the government issues these visas to spouses of U.S. citizens or children adopted by U.S. citizens. However, employer-sponsored immigrant visas also grant permanent residency to employees.
Nonimmigrant visas
These visas allow foreign nationals to stay in the U.S. temporarily and perform a specific duty. Some nonimmigrant visa categories include:
- Tourism visas
- Student visas
- Performing artist or athlete visas
- Visas for occupations in fields requiring highly specialized knowledge. This visa type is also known as H-1B.
The H-1B visa lottery system
The H-1B visa lottery is a computerized random selection process implemented by the United States Citizenship and Immigration Services (USCIS) to manage the overwhelming demand for H-1B visas that consistently exceeds the annual quota.
Annual visa allocation
USCIS maintains two distinct caps for H-1B visas each fiscal year:
- A regular cap of 65,000 visas for qualified foreign workers
- An advanced degree exemption of 20,000 additional visas reserved exclusively for individuals holding master’s degrees or higher from U.S. institutions
Selection process
The lottery operates through a two-tiered selection system. First, USCIS conducts the advanced degree lottery for the 20,000 visas. Then, unselected advanced degree petitions and other eligible registrations enter the regular cap lottery. This system provides advanced degree holders two opportunities for selection, increasing their chances of securing an H-1B visa.
Registration and timeline
The process begins with an electronic registration period, typically occurring in March. For fiscal year 2025, the registration window ran from March 6 to March 22, 2024.
Employers must submit registrations and pay a non-refundable fee for each beneficiary. Starting in 2025, each beneficiary will be entered only once using their passport or travel document number to prevent multiple submissions.
Selection odds and business impact
Competition for H-1B visas has become increasingly challenging. Selection rates have declined significantly, from 46.1% in fiscal year 2021 to 24.8% in 2024. This steep decline creates substantial uncertainty for employers and potential employees alike.
Business planning challenges
The lottery system presents significant challenges for workforce planning:
- Companies must develop contingency staffing strategies due to the unpredictable nature of the selection process
- The limited visa availability affects business competitiveness, particularly in technology and specialty sectors
- Selected registrants have 90 days to submit complete H-1B petitions, requiring swift action and careful preparation
Difference between an I-9 and an H-1B visa
The H-1B visa and Form I-9 serve distinct but interconnected roles in U.S. employment authorization. The H-1B visa functions as a specialized work permit that enables U.S. employers to hire foreign professionals in positions requiring advanced expertise and specific educational qualifications.
Form I-9 is a universal employment verification tool that confirms the work authorization status for every employee hired within the U.S.
Documentation requirements
For H-1B employees, the I-9 verification process requires specific documentation. These workers typically present their foreign passports and I-94 cards, showing their H-1B status as “List A” documents. The I-94 card—not the visa stamp in the passport—is the crucial document for employment verification purposes, as it confirms the worker’s authorized stay duration.
Employer obligations
Employers face distinct responsibilities for each process. For H-1B visas, companies must sponsor the foreign worker by filing Form I-129 and ensuring compliance with prevailing wage requirements. For I-9 compliance, employers must complete verification within three business days of the employee’s start date, regardless of citizenship status.
Timing and duration
H-1B status initially lasts up to three years and can be extended to six years in total. The I-9 verification process, however, requires re-verification when work authorization expires. For H-1B workers receiving extensions, employers can note “240-Day Ext.” on the I-9 form, allowing continued employment for up to 240 days while USCIS processes the extension.
Compliance considerations
While the H-1B represents a specific immigration classification, the I-9 serves as an ongoing compliance requirement. Employers must maintain I-9 records for three years from the hire date or one year after employment ends, whichever is later. For H-1B workers changing employers, the new company must complete a new I-9, even when the worker ports their H-1B status under AC-21 provisions.
How to apply for an H-1B visa
The H-1B visa application involves three main phases that require careful coordination between employers and prospective employees.
Initial registration and selection
Employers must first complete an electronic registration during the designated period, typically in March, and pay the registration fee for each candidate. If selected in the lottery, employers can proceed with the entire petition process.
Petition filing and labor certification
After selection, employers must obtain a certified Labor Condition Application (LCA) from the Department of Labor and file Form I-129 with the USCIS. This petition package includes documentation of the employee’s qualifications, proof of the employer-employee relationship, and various filing fees. Premium processing, available for an additional fee of $2,805, guarantees a 15-day processing time.
Visa application and entry
Once the USCIS approves the petition, candidates outside the U.S. must apply for an H-1B visa stamp at a U.S. consulate. This involves submitting Form DS-160, paying visa fees, and attending a consular interview. Canadian citizens need only the H-1B approval notice and passport for U.S. entry. The entire process typically takes four to six months without premium processing.
Additional H-1B visa considerations
For the lucky selected employees, there are some additional considerations companies and employees need to consider as they plan for work in the U.S.
- H-1B visas expire after three years unless extended. The extension period can last for up to six years, but then the worker must apply for a Green Card. If the employee is eligible, they file Form I-485 and wait for approval to work and live in the U.S. indefinitely.
- H-1B visa recipients can legally bring spouses or children under 21 to the U.S. However, each family member must apply for a visa individually. In most cases, family members receive an H-4 visa designed for H-1B visa dependents.
FAQs about the H-1B visa
The H-1B visa program enables U.S. employers to hire foreign talent for specialized roles. Here are answers to common questions about eligibility, duration, and pathways to permanent residency.
Who qualifies for an H-1B visa?
To qualify, candidates must have at least a bachelor’s degree in a field related to their specialty occupation and receive a job offer from a U.S. employer. The position must require specialized knowledge and skills, as well as its theoretical and practical application.
How long does the H-1B visa last?
H-1B visas are initially valid for three years and can be extended for an additional three years, for a total maximum stay of six years. Time spent outside the U.S. during the H-1B period can be “recaptured” to extend the total duration of stay.
Can an H-1B visa holder apply for permanent residency?
Yes, the H-1B visa is a “dual intent” visa, allowing holders to pursue permanent residency while maintaining their H-1B status. After six years in the U.S. as an H-1B worker, visa holders become eligible to apply for a green card through employer sponsorship, provided they meet all qualifying criteria.
What happens if the H-1B visa lottery cap is not reached?
The USCIS continues accepting and processing H-1B petitions until the annual quota of 85,000 visas is reached. However, for fiscal year 2025, the USCIS announced that the cap had been reached after two lottery rounds and plans with no additional selections.
Can dependents of H-1B visa holders work in the U.S.?
H-4 visa holders (spouses and children under 21) have limited work authorization rights. Only H-4 spouses whose H-1B partner either has an approved Form I-140 immigrant petition or has been granted an H-1B extension under AC21 provisions can apply for employment authorization. Children with H-4 status are not eligible to work under any circumstances.
Can an H-1B visa holder switch employers?
Yes, H-1B holders can change employers through a transfer process. The new employer must file a new H-1B petition, but unlike initial applications, employees can begin working for the new company once the USCIS receives the petition. The transfer process typically takes four to eight weeks to complete.
Alternate global hiring options
Not only is the number of available H-1B visas limited yearly, but applying for one is complicated. Companies invest resources in finding the right candidates. So, if their employee does not receive an H-1B visa, the company must wait another year before reapplying or finding another high-quality candidate. Therefore, companies turn to alternate hiring options to remain competitive and retain their highly skilled workforce.
Velocity Global’s International Professional Employer Organization (PEO) solution allows companies to avoid the complicated H-1B visa process. With International PEO, companies quickly employ any worker in over 185 countries around the globe.
While the International PEO is not a work visa, it does allow companies to hire highly skilled workers in foreign markets compliantly. With this solution, companies can transition employees from the International PEO to their internal teams once they receive an H-1B visa.
Although the workers cannot legally move to the U.S. with the International PEO, they are legal, compliant employees of the company and can complete assignments for any amount of time.
Our global expansion experts can help organizations navigate the complexities associated with compliantly employing their teams. Talk to us today to learn more about how our International PEO solution can help.
