H-1B visa requirements: What employers need to know

Hiring global talent often means navigating complex immigration laws and work visas. For U.S. employers, understanding H-1B visa requirements is key to hiring and retaining skilled foreign professionals. This visa allows companies to fill roles that demand technical or specialized expertise. 

The H-1B employer-sponsored visa comes with strict documentation and eligibility requirements. Employers are responsible for managing every stage of the application, from filing petitions to maintaining compliance throughout the employee’s tenure.

This article explains what employers, People Ops, and leaders need to know about U.S. immigration rules. We’ll show you how to navigate the H-1B process confidently and avoid the most common pitfalls. 

What is an H-1B visa?

The H-1B visa is a nonimmigrant work authorization that allows U.S. employers to hire highly skilled professionals from other countries for specialty occupations. These roles require advanced knowledge and a degree in a related field. Common examples include engineers building critical systems, researchers driving innovation, or analysts solving intricate financial problems. 

The U.S. Citizenship and Immigration Services (USCIS) oversees the program and lets employers put people in roles that the domestic talent pool can’t fill. The visa allows the employee to live and work in the U.S. temporarily as long as they stay employed by their sponsoring employer. 

Important details about the H-1B visa

Navigating the application process requires a strong understanding of the core requirements. Below are key rules and updates that impact eligibility and employment status.

• Specialty occupation requirement: The job must require specialized knowledge and a degree in a directly related field. 
• Employer sponsorship: Typically, only U.S. employers can file Form I-129 for an H-1B employee—individuals can’t file on their own. After 2025 USCIS updates, business owners may use their own company to sponsor beneficiaries if it has a clear structure, like an independent board.
• Annual cap and selection process: Each fiscal year, the USCIS grants up to 85,000 new H-1B visas, including 65,000 under the regular cap and 20,000 for those with a U.S. master’s degree. When applications exceed the cap, a lottery decides which visa applicants can move forward.
• Application fee changes: A presidential proclamation in September 2025 introduced a $100,000 application fee for new H-1B petitions. As of October 2025, federal courts are reviewing the policy, and the USCIS has not yet implemented it. 
• Duration of stay: Initial approval lasts for up to three years, with the option to extend it to six. Certain green card applicants can stay longer under the American Competitiveness in the 21st Century Act (AC21).
• Portability between employers: It’s possible for employees to switch jobs while maintaining work authorization. Once a new employer files an H-1B petition, the beneficiary can begin the new role without waiting for final approval. 

H-1B benefits and challenges

The H-1B program gives U.S. companies access to specialized global talent, helping fill roles that are difficult to staff locally. But the program’s benefits come with administrative, regulatory, and operational challenges that require careful management. 

Benefits

• Access to specialized talent: Employers can hire highly trained professionals from around the world to fill advanced technical and academic roles. 
• Long-term collaboration: With stays up to three years and extensions that can reach six, the program supports stability and continuity.
• Dual intent for residency: Employees can apply for permanent residency while maintaining their temporary visa status, giving both sides of the employment relationship more long-term certainty. 

Challenges

• High sponsorship costs: Legal fees, filing expenses, and a proposed $100,000 application fee for petitions filed on behalf of employees outside the U.S. make visa sponsorship expensive. 
• Unpredictable selection: Cap-subject roles face strict quotas. Most applicants must pass a lottery to proceed.
• Strict compliance requirements: Employers must meet the Department of Labor (DOL) and USCIS obligations, including wage documentation and certified Labor Condition Application (LCA).

Organizations that hire globally may want to consider an employer of record (EOR). With an EOR, companies can hire and pay talent from all over the world in full compliance with local labor laws—without a visa lottery or entity setup.

H-1B visa requirements

To be approved, both the employer and employee must meet specific USCIS requirements. The sections below outline each core eligibility factor needed to prepare a petition that meets USCIS expectations. 

Specialty occupation requirements

The position must require specialized knowledge and at least a bachelor’s degree (or equivalent) in a field directly related to the work. Common examples include computer science, healthcare, and finance. The USCIS reviews the job’s complexity and level of responsibility to determine whether it meets the specialty standard. 

Employer requirements

U.S. employers with a valid tax ID who have presented a legitimate job offer can sponsor an H-1B visa beneficiary. The company must prove it can supervise, pay, and manage the worker. Employers are also responsible for covering all required government and legal fees tied to the petition.

Employee requirements

Employees must show they’re qualified for the role through education, experience, or training. Most hold at least a bachelor’s degree in a field tied to the position. If the job requires a professional license, it must be active and valid in the state of employment. 

Prevailing wage requirement 

Before filing a petition, the employer must verify that it will pay at least the prevailing wage for the job and location. This ensures fair compensation for the foreign worker and protects U.S. labor standards. Employers use DOL wage data so pay aligns with what similarly qualified U.S. employees earn in comparable roles.

Labor Condition Application

Employers must file a certified LCA with the DOL before submitting the H-1B petition. This confirms wage compliance and ensures the employment won’t negatively affect other team members’ conditions. Companies must post notice of the filing at the workplace and maintain a public access file containing the certified LCA and related records for inspection if requested. Only after certification can the company submit Form I-129 to the USCIS. 

H-1B visa application process

The process for filing an H-1B visa includes several steps managed by the DOL and USCIS. Here’s what employers must do to avoid delays and stay compliant.

1. Register for the H-1B 

For cap-subject roles, employers must register online during the March filing window. If registrations exceed the annual cap, the USCIS uses a lottery to decide who can move forward with a petition. Cap-exempt employers, such as universities and non-profit research institutions, can file directly without registering for the lottery.

2. File the Labor Condition Application

Once selected, the employer files an LCA with the DOL to confirm wage standards and working conditions. Employers can submit this up to six months before the job begins, and it usually takes seven business days to process. Because wait times can vary, filing early helps avoid delays. The DOL must certify the LCA before the employer can submit the H-1B petition.

3. Submit Form I-129 to the USCIS

After LCA approval, the employer files Form I-129 with the USCIS. This petition includes the certified LCA, proof that the role qualifies as a specialty occupation, and evidence of the beneficiary’s qualifications. Employers may choose premium processing for a faster review. 

4. Wait for the USCIS review and decision

The USCIS reviews the petition and may request additional evidence. If approved, the employer receives Form I-797, which confirms the petition and authorizes the next steps in the process. 

5. Complete consular processing or change of status

If the employee is outside the U.S., they complete Form DS-160 and attend an interview at a U.S. consulate. If approved, they receive an H-1B visa stamp in their passport. Employees already inside the U.S. can change their status directly through the USCIS, shifting from their current visa category to H-1B without leaving the country. 

What to do if the H-1B visa is denied

A denial doesn’t always end the process. Understanding why it happened helps employers choose the best next step. Below are common reasons for denial and how to respond:

• The job doesn’t qualify as a specialty occupation: Provide stronger evidence that the role requires degree-level knowledge tied to specific duties. 
• The employer-employee relationship is unclear: Include documentation like contracts or reporting structures. These should show the employer’s authority to assign and direct work and to terminate the employee if needed. 
• The petition contains missing or inconsistent documents: Correct errors in the petition, LCA, or supporting records, then refile in the next cap window if eligible. 
• The denial stems from administrative or policy-related delays: Respond to any requests filed under section 221(g)—a temporary refusal for extra documentation or review—or appeal if the denial follows a policy change. 

Appeal or explore other options

Employers can file Form I-290B to appeal or request the USCIS reopen the case. They must submit the form within 30 days of the decision.

If the original role or candidate no longer fits H-1B criteria, other visa categories may offer a path forward. The O-1 visa supports individuals with extraordinary ability, a classification for people recognized as top performers in their area of expertise. The L-1 allows intra-company transfers. And the TN visa is available to Canadian or Mexican professionals. 

Can’t hire through H-1B? Try Oyster’s EOR

The H-1B program opens access to global talent, but it also brings high costs, convoluted filings, and unpredictable outcomes. If the process proves too complex or costly, an employer of record (EOR) is a flexible alternative. Oyster helps companies hire eligible workers in over 180 countries—no visa stamp, consulate review, or lottery required.

With Oyster’s EOR, businesses can quickly onboard foreign talent and stay compliant with local labor laws. It’s a practical solution for global hiring without the uncertainty of the H-1B process. 

Learn more about Oyster’s employer of record.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.