It’s hard to find and hire the right talent, especially when it comes to specialized skills. But the H-1B visa helps expand the labor pool, enabling U.S. employers to hire highly skilled foreign professionals. Understanding the intricacies of this visa category is essential for businesses looking to leverage global talent
What is an H-1B Visa?
The H-1B visa is a non-immigrant visa that allows U.S. employers to temporarily employ foreign workers in specialty occupations requiring theoretical or technical expertise.
To qualify, a position must require at least a bachelor’s degree or equivalent experience in a specific field. The non-immigrant visa holder must have full state licensure to practice in the occupation, if required for the profession. Some common industries where H-1B visas are used include information technology, finance, healthcare, and academia.
Benefits of H-1B Visas for Businesses
There are several benefits of hiring H1-B visa holders, and businesses that use the H-1B program have:
- Access to specialized talent: Many high-skill roles are hard to fill locally. H-1B visas allow employers to bring in workers with the exact skills needed.
- Global competitiveness: Hiring international talent helps companies stay competitive and innovative in a global marketplace.
- Innovation and growth: International workers often bring unique approaches, education, and experiences that can drive innovation and help businesses expand into new markets.
- Addressing skill shortages: H-1B visas help fill critical gaps in the labor market, especially in STEM fields, healthcare, and other specialized industries facing domestic talent shortages.
Eligibility and H1-B Visa Requirements
In order for someone to qualify for a Specialty Occupation H-1B visa, they must meet one of the following H1-B visa requirements as outlined by U.S. Citizen and Immigration Services (USCIS):
- Hold a U.S. bachelor’s or advanced degree related to the specialty occupation from an accredited college or university
- Hold a foreign degree that is the equivalent to a U.S. bachelor’s or advanced degree required related to the specialty occupation from an accredited college or university
- Hold an unrestricted state license, registration, or certification that authorizes you to fully practice the specialty occupation
In some cases, you might qualify if you have education, special training, or work experience that matches what someone would learn in a U.S. college degree program.
H1-B Visa Compliance and Legal Considerations
As an employer sponsoring an H-1B visa, you must file a Form I-129 petition with USCIS, complete the H-1B electronic registration process, and ensure compliance with Department of Labor (DOL) regulations.
To meet the H1-B visa compliance requirements, an H-1B employer is required to keep the following records and make them available to the public upon request:
- Name, address, position, and social security number for all H-1B workers and any other staff employed in the same occupation
- Rate of pay, hours worked (if part-time), gross pay, deductions, and net pay for all H-1B workers and any other staff employed in the same occupation
- Benefit plan(s) offered and provided
- Labor Condition Application (Form ETA 9035 and/or ETA 9035E)
- Prevailing wage rate and its source
- Method used to establish the actual wage
- Documentation that the notice requirement* was satisfied
*Notice requirement: U.S. employees must receive notice 30 days before their employer files a Labor Condition Application. The employer is required to provide a copy of the LCA to each H-1B worker the day they report to work.
The employer is required to pay H1-B workers the prevailing wage or actual wage — whichever is higher. And, like all employees, H-1B visa holders must fill out Form I-9.
Challenges and Solutions
By allowing companies to hire foreign professionals with expertise in high-demand fields, the H-1B program fosters innovation, drives economic growth, and enhances the competitiveness of U.S. industries. Many economists note the positive impact the H1-B visa program has on the economy.
The H1-B Visa Cap
The program doesn’t come without its challenges for employers. First, just because you submit a petition for an H-1B worker doesn’t mean you will get to hire one. The U.S. government sets an annual cap on the number of new H-1B visas issued each fiscal year (currently 65,000, with an additional 20,000 visas reserved for those with U.S. master’s degrees or higher).
This cap often leads to a highly competitive selection process.Competitive SelectionWhen the number of H-1B petitions exceeds the annual cap, USCIS uses a lottery system to randomly select the petitions that will be processed. This can be frustrating for both employers and prospective employees, as qualified candidates may not be selected.
Finally, the H-1B program is subject to regulatory changes and increased scrutiny, which can add complexity and uncertainty to the process.
Impact on the Workforce
Hiring H-1B visa holders can influence workforce strategy in meaningful ways. To name a few:
Overcoming Talent Gaps
It allows companies to fill talent gaps, plan for future growth, and build globally diverse teams. However, employers must consider how to balance international hires with long-term workforce development goals.
Workforce Management
From a planning perspective, bringing on H-1B talent requires foresight. There are sometimes lengthy processing times, and it’s no guarantee your petition will be granted. If granted, employers must align visa timelines with project schedules, budget for legal and administrative costs, and ensure a smooth onboarding experience.
Employee Retention
Because H-1B workers are tied to their sponsoring employer, businesses have a unique opportunity to build strong loyalty by offering support, such as professional development, green card sponsorship, and cultural integration efforts. These strategies not only help retain top talent but also foster a more inclusive, high-performing workplace.
Working alongside H1-B visa holders often enriches the entire team’s perspective, as American employees gain exposure to different problem-solving approaches and cultural insights that can enhance their own professional growth and leadership capabilities.
Future of the H-1B Program
The H-1B visa program is dynamic, subject to policy changes and influenced by economic and political trends. For example, the H1-B visa forms and the selection process were updated this year to make the registration and selection more equitable.
Businesses need to adapt to these changes to ensure continued compliance and effective workforce planning. To stay updated on H-1B visa changes, regularly check the USCIS website and subscribe to their email alerts.
Looking forward, there have been ongoing discussions about potential legislative reforms to the H-1B program, which could address issues such as the annual cap, prevailing wage requirements, and pathways to permanent residency.
Note: the outcome of these discussions remains uncertain but could significantly reshape the H1-B Visa program.
H-1B Visa FAQs
Still have questions H1-B visas? Read on.
Can a Business Owner Sponsor Themselves for an H-1B Visa?
Yes, recent changes allow business owners and entrepreneurs to self-sponsor for an H-1B visa.
What Happens if an H-1B Employee is Laid Off?
If an H-1B visa employee is terminated, they must take one of the following actions to stay in the U.S.:
- File an application for a change of nonimmigrant status
- File an application for adjustment of status
- File an application for a compelling circumstances Employment Authorization Document
- Be the beneficiary of a nonfrivolous petition to change employer
These actions can extend an employee’s stay in the U.S., even if they lose their previous nonimmigrant status. If they take no action within the 60-day grace period, they may be required to leave the U.S. within 60 days, or when your authorized validity period ends, whichever is shorter.
Can H-1B Visa Holders Start Their Own Business?
Yes, recent H-1B changes favor entrepreneurs and business owners. To avoid jeopardizing an H-1B status, a visa holder must ensure that your new company can demonstrate a true employer-employee relationship, and they can’t work for the company before receiving the new H-1B visa.
How Long Can an H-1B Visa Holder Stay in the U.S.?
The total length can vary due to extensions. An H-1B visa can be initially approved for a stay of up to three years. Extensions for up to an additional three years may be obtained.
What Are the Options for Extending an H-1B Visa?
Extensions can be granted in three-year increments, up to the six-year limit. Beyond six years, extensions may be possible under certain circumstances, such as having a pending labor certification or I-140 immigrant petition for more than 365 days.
How Paycor Helps
Sponsoring an H-1B employee requires detailed recordkeeping and a watchful eye on regulations and compliance.
But your HR team doesn’t have to do it on their own. A platform like Paycor provides in-product compliance updates and notifies users of key changes for H1-B visa requirements. In addition, it offers a secure repository for storing the required documentation.
Take a guided software tour to learn why 30,000+ companies trust Paycor with their human capital management needs.