The $100,000 H-1B Rule: What It Means, Who It Hurts, and How to Protect Yourself

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The $100,000 H-1B Rule: What It Means, Who It Hurts, and How to Protect Yourself

The $100,000 H-1B Rule: What It Means, Who It Hurts, and How to Protect Yourself

The U.S. immigration system just dropped a bombshell — a $100,000 filing fee for new H-1B petitions filed for workers outside the United States.

That’s not a typo. Employers who want to bring foreign talent from abroad will now have to pay six figures just to file the petition — before legal fees, before premium processing, and before the employee ever sets foot in the U.S.

At PKH Law Group, we’ve been fielding calls from employers, students, and foreign professionals asking the same questions:
Who does this rule really affect? And what can you do instead?

Let’s break it down.


 Who’s Directly Impacted

1. Employers Filing for Workers Abroad

If you’re sponsoring a candidate currently outside the U.S., your petition will trigger the $100K fee.
This applies to both cap-subject and cap-exempt filings — if the worker is overseas, you’re paying it.

For many employers, especially startups, hospitals, and small tech firms, this will make international hiring practically impossible. The message is clear: “Hire local, or pay dearly.”


 F-1 Students in the U.S.: What You Need to Know

If you’re on F-1 OPT or STEM OPT, you’re in a much better position — for now.

  • You’re not subject to the $100K fee if your employer files a change of status while you’re still in the U.S.

  • But if you leave the country and reenter on your H-1B visa, you could be hit with the fee during consular processing.

  • In short: stay in status, stay inside the U.S., and plan your timing carefully.

For employers, this means the smartest hires are foreign graduates already in the U.S. who can change status without triggering that massive surcharge.


 What About People Already on H-1B?

Good news: H-1B extensions and renewals are exempt.
But transfers could get complicated.

If an employee already in H-1B status switches employers while inside the U.S., that’s fine. But if they’re abroad at the time of filing or need consular processing, the $100K rule may apply.

Until USCIS clarifies, it’s safest to avoid unnecessary travel and file from within the country.


The Ripple Effect for Employers

This policy was designed to discourage low-cost labor imports — and it’s working.
We’re already seeing companies:

  • Shift focus to F-1 OPT/STEM OPT candidates already in the U.S.

  • Use L-1 and O-1 visas to transfer or attract specialized workers.

  • Explore green card options (EB-2 NIW) for long-term retention.

It’s no longer just an HR decision — it’s a corporate strategy issue.


 Smarter Alternatives to H-1B

Visa Type Best For Why It Works Now
Cap-Exempt H-1B Universities & Nonprofits Exempt from lottery and the $100K fee.
L-1 Multinational companies Allows intracompany transfers — no cap, no $100K.
O-1 Extraordinary ability workers Ideal for standout STEM and creative professionals.
TN Canadians & Mexicans Fast, renewable, and affordable.
EB-2 NIW Advanced degree/exceptional ability Skips H-1B entirely — green card direct.

What Employers Should Do Right Now

  1. Prioritize U.S.-based candidates.
    Focus on OPT, STEM OPT, or current H-1B holders already inside the country.

  2. Reassess your hiring strategy.
    Build relationships with cap-exempt institutions or overseas affiliates.

  3. Seek legal strategy early.
    Don’t wait until the lottery — plan a compliant, cost-effective workforce solution now.


Bottom Line

The $100,000 H-1B rule is not just about cost — it’s a test of compliance, foresight, and flexibility.
Employers who adapt quickly will still have access to the global talent they need.
Students and H-1B holders already in the U.S. have leverage — if they navigate wisely.

At PKH Law Group, we help employers and foreign professionals find pathways that make sense — legally, financially, and strategically.

Contact us to explore H-1B alternatives or to assess your eligibility under the new rules.
Because immigration law just changed — and how you respond will define your options.