US Expands $4,000 H-1B Fee to Include Extensions for Large Employers

The US Department of Homeland Security (DHS) has announced that it will charge $4,000 for H-1B and $4,500 for L-1 visa extensions on employers who meet certain criteria. The new rule is set to take effect 30 days after its publication in the Federal Register on August 10.

The fee applies to employers with at least 50 employees in the US and more than 50% of their workforce on H-1B or L-1 visas, often referred to as the 50-50 rule. This means that large companies with a high concentration of foreign workers will be affected by the new fee.

According to Fragomen, an immigration law firm, the regulation 'will also apply the fee to all H-1B and L-1 extension of stay petitions filed by subject employers.' The final rule does not increase the existing fee but expands it to same-employer extensions. Qualifying employers must pay $4,000 for H-1B and $4,500 for L-1 petitions.

The immediate financial burden falls on the employer, not directly on the foreign worker. However, the change could still have an indirect impact on Indian professionals because employers may consider immigration costs when making hiring, retention, and sponsorship decisions.