The U.S. government introduced new H-1B visa rules this September that could significantly impact how companies recruit and retain foreign talent.
The biggest change is the requirement of a one-time $100,000 fee for all new H-1B visa applications, which went into effect on September 21, 2025. The new fee, which applies to all new H-1B visa applications, not renewals, will significantly impact U.S. employers bringing in foreign talent. In addition, the existing lottery system will become wage-weighted, giving higher paying roles better odds at visa approval. This means high-paying roles in big tech, for instance, will have an advantage, while startups, universities, and smaller employers will have to adapt to higher labor costs.
These updates mark more than just a policy tweak—they represent a fundamental shift in how U.S. companies access global talent.
Amidst these developments, it’s also important to remember: the H-1B program isn’t the only route to hiring global talent. Remote work offers a powerful alternative, one that bypasses visa caps, reduces unpredictability, and lets you hire the best minds anywhere in the world.
For People teams, the takeaway is clear: expect greater emphasis on higher wages, higher costs, and greater uncertainty. Now is the time to assess workforce strategies, anticipate budget impacts, and prepare for multiple possible outcomes.
In this post, we’ll walk you through:
- What the H-1B changes mean for employers and talent
- How to assess the impact on your talent strategy
- Alternative approaches to accessing global talent
Let’s dig in.
What is the H-1B visa?
The H-1B visa allows U.S. companies to hire highly skilled professionals from around the world. It’s been used most often in science, technology, engineering, and math (STEM) fields. It’s designed to fill specialized roles when qualified U.S. workers aren’t available.
Each year, the U.S. government issues a limited number of H-1B visas through a random lottery system. Demand consistently exceeds supply, meaning thousands of skilled workers—and the companies eager to employ them—miss out. Because of this, the program plays a major role in shaping how organizations plan their talent strategies and respond to evolving global workforce policies.
What’s changing: Key updates to H-1B policy
Recent months have brought some of the most significant proposals in years to the H-1B program. These changes could reshape who gets selected, at what cost, and under what terms. The proposed changes are under public comment until late October 2025. Employer feedback could shape final implementation, so get engaged through your representatives, municipalities, and industry groups.
While you should refer to official government communications for the most recent updates, below is a breakdown of the top developments to watch:
1. One-time $100,000 fee for new petitions
Effective September 21, 2025, a presidential proclamation requires U.S. employers filing new H-1B petitions to pay a one-time $100,000 fee. It excludes renewals, amendments, and petitions filed before that date.
2. Moving from a random lottery to a weighted wage-based lottery
DHS has submitted a proposed regulation to replace the current random lottery with a system that gives greater chances (i.e. more “entries” in the selection pool) to petitions offering higher wages. What’s considered a “higher wage” is determined by wage levels determined by the Department of Labor's Occupational Employment and Wage Statistics System. These aren't fixed dollar amounts, and they vary by occupation and geographic location.
The system employs four levels:
- Level I (Entry level)
- Level II (Qualified)
- Level III (Experienced)
- Level IV (Fully competent/expert)
While this system doesn’t guarantee selection for high earners, it substantially increases their odds. DHS simulations show that selection rates for Level IV workers could more than double, while Level I workers—often recent graduates—would see their odds cut nearly in half.
3. Prevailing wage increases and enforcement intensification
The presidential proclamation also instructs agencies to revise prevailing wage standards upward. This means the minimum salary employers must offer H-1B workers will increase to better align with market rates for similar U.S. roles. Simultaneously, a new DHS / Department of Labor enforcement initiative (Project Firewall) is expanding oversight, leading to greater scrutiny of petitions.
Impact on employers and employees
For workers, the recent H-1B changes are likely to increase uncertainty about employment prospects since employers might be daunted by the $100,000 fee, as well as confusion around exactly how the new weighted lottery will function. For employers, it underscores the need for careful planning and the exploration of alternative strategies, such as hiring remote talent outside the U.S., to maintain access to specialized skills.
Here’s how these changes are impacting new applicants and companies:
- Existing H-1B holders and renewals: No immediate impact. Employees already on H-1B visas or extending their current status remain unaffected.
- New applicants: Higher wage floors and the move to a wage-weighted lottery mean lower-paid positions may have reduced odds of selection. Employers sponsoring new hires should anticipate increased costs and more competitive selection.
- Employers planning to hire via H-1B: Companies should revisit budgets, hiring plans, and timelines. Proactively evaluating which roles are most critical and which might qualify for higher wage levels can make a meaningful difference.
Exploring alternative visa options
While the H-1B remains the most common route for bringing skilled foreign talent to the U.S., there are several alternative visas for companies to consider. Each comes with its own requirements, benefits, and limitations. Here we’ll review the L-1, TN, O-1, and remote work as alternatives.
1. L-1 Visa (Intracompany Transfers)
- Use case: For employees of multinational companies transferring from a foreign office to a U.S. branch.
- Pros: Faster processing than H-1B and doesn’t rely on the lottery.
- Limitations: Only available to employees already working for the company abroad; strict eligibility rules around role and tenure.
- Learn more: L-1 details from the U.S. Citizenship and Immigration Services
2. TN Visa (for Canada and Mexico)
- Use case: Professionals under the United States-Mexico-Canada Agreement (formerly NAFTA) in specific occupations such as engineers, scientists, and accountants.
- Pros: Quick and relatively straightforward application; renewable indefinitely in three-year increments.
- Limitations: Limited to Canadian and Mexican citizens; only covers certain professions.
- Learn more: TN details from the U.S. Citizenship and Immigration Services
3. O-1 Visa (Individuals with Extraordinary Ability)
- Use case: Workers with exceptional skills or accomplishments in fields like science, education, business, athletics, or the arts.
- Pros: Can be granted for multiple years; doesn’t go through a lottery.
- Limitations: High evidentiary bar; not suitable for most standard professional roles.
- Learn more: O-1 details from the U.S. Citizenship and Immigration Services
4. Remote work as an alternative
- Use case: Hiring skilled professionals anywhere in the world without relying on U.S. visas.
- Pros: Avoids visa caps, lottery uncertainty, and rising U.S. wage costs; allows access to a truly global talent pool.
- Limitations: Compliance considerations vary by country, including local employment laws, taxes, and benefits.
A flexible solution for hiring globally: Consider an EOR like Oyster
Keeping up with changes to the H-1B visa process requires flexibility and foresight, but it shouldn't stall your global talent strategy. One solution many companies are turning to is an employer of record (EOR) like Oyster. An EOR legally employs foreign nationals in their home country on behalf of your organization, handling payroll, benefits, and compliance. This approach allows companies to:
- Retain talent who cannot secure a U.S. visa.
- Expand into new markets quickly, without setting up a local legal entity.
- Mitigate compliance risk when navigating unfamiliar employment laws.
While an EOR isn’t a replacement for U.S. work authorization, it provides a compliant and scalable way to access skilled global talent when relocation isn’t immediately feasible.
By combining careful visa planning with EOR solutions, HR leaders can build resilient, globally diverse teams that align with both business goals and compliance requirements.
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.
