H1B Sponsorship Guide for Employers: Costs, Rules, Steps

Table of Contents

Introduction

H1B sponsorship lets a U.S. employer hire a foreign professional for a role that requires a specialized degree. The employer files everything, pays most of the costs and takes on wage and compliance duties for as long as the worker holds H-1B status.

2026 changed a lot of the details. The lottery now favors higher wage levels, a $100,000 fee was imposed and then blocked in court, and new proposals are still pending. This guide walks employers through the process, the real costs and what's in effect as of November 2026.

This is general information, not legal advice. Immigration rules are moving quickly this year, so confirm every filing decision with immigration counsel and the USCIS H-1B page.

TL;DR

H1B sponsorship is employer-driven. The employer files the Labor Condition Application and the petition, and pays most fees.
Since the FY 2027 season, lottery selection is weighted by wage level, so higher-paid roles get more entries.
Standard government fees for a mid-size employer run a few thousand dollars per petition before legal fees and premium processing.
As of early November 2026, the $100,000 proclamation fee is blocked by court orders and isn't being collected, but the issue is still in litigation.
Compliance doesn't end at approval. Wage, notice, recordkeeping and amendment rules apply for the whole H-1B period.

What H1B sponsorship means for an employer

Sponsoring an H-1B worker means your company petitions U.S. Citizenship and Immigration Services on that person's behalf. A worker can't apply alone, which is why the employer's commitment matters so much.

You're also making promises to the Department of Labor. When you file the Labor Condition Application, you attest that you'll pay at least the required wage, that the hire won't hurt working conditions for U.S. workers, and that you'll keep public records of those commitments.

Some costs are yours by law. The ACWIA training fee can't be passed to the worker, and other business expenses can't be deducted if they'd push pay below the required wage.

Candidates looking at this from the other side should read our guide to sponsoring an H1B visa as a tech professional.

Who qualifies: the role, the worker and the employer

The role

The job has to be a specialty occupation. In practice, that means the role normally requires at least a bachelor's degree in a specific, related field. Software development, data engineering and many analyst roles usually qualify. A generic "IT associate" title with vague duties often draws questions.

The worker

The candidate needs that degree, a foreign equivalent, or a recognized equivalent combination of education and experience. Degree evaluations and translations are common for foreign credentials, so build that time into your plan.

The employer

You need a real employer-employee relationship. USCIS looks at whether you can hire, pay, fire, supervise or otherwise control the work.

That's why a solo corp-to-corp or 1099 setup generally doesn't work for H-1B, a point our worker status breakdown covers in more detail.

The H1B sponsorship process step by step

For a cap-subject hire, the process runs on a fixed annual calendar. Missing a window usually means waiting a full year.

Classify the role and set the wage. Pick the right SOC code and work location, then find the prevailing wage level from Department of Labor wage data. This decision now affects lottery odds, not just pay.
Register in March. Cap-subject employers submit an electronic registration during USCIS's March window and pay the $215 registration fee. For FY 2027, that window ran from March 4 to March 19, 2026.
Wait for selection. Under the weighted selection rule, a Level IV wage gets four entries, Level III three, Level II two and Level I one. Each person still counts once, no matter how many employers register them.
File the Labor Condition Application. If selected, file Form ETA-9035 with the Department of Labor. Give notice to U.S. workers within 30 days before filing, and make the public access file available within one working day of filing.
File the petition. Submit Form I-129 with the certified LCA and supporting evidence during the filing window, which usually opens April 1. Your petition must support the wage level you claimed at registration.
Start employment. Cap-subject workers can generally start on October 1. Workers already in the U.S. may change status, while others go through consular processing abroad.

Our post on how H1B jobs, the lottery and pay actually work explains the lottery from the candidate's side.

Cap-subject vs. cap-exempt H1B sponsorship

The annual cap allows 65,000 new H-1B visas, plus 20,000 more for people with U.S. master's degrees or higher. Most private employers hiring someone new to H-1B status fall under that cap and go through the lottery.

Some employers skip it. Universities, their affiliated nonprofits, and nonprofit or government research organizations can file cap-exempt petitions year-round.

Transfers matter here too. Someone already counted against the cap can usually move to a new employer without another lottery, which is why many companies hire existing H-1B workers instead of registering new ones.

If you're weighing whether to start someone on OPT first, our comparison of H-1B and OPT covers the timing.

What H1B sponsorship costs in 2026

Government fees depend on your company's size and status. Based on USCIS's current published fees, here's what a typical petition includes:

Registration fee: $215 per registration, paid in March for cap-subject cases.
Form I-129 base fee: $780, or $460 for employers with 25 or fewer full-time equivalent employees and for nonprofits.
ACWIA training fee: $1,500 for employers with more than 25 employees, or $750 for smaller employers. Certain nonprofits and educational institutions are exempt.
Fraud Prevention and Detection fee: $500 for initial petitions and changes of employer.
Asylum Program fee: $600, or $300 for small employers, and $0 for nonprofits.
Public Law 114-113 fee: $4,000 if you have 50 or more U.S. employees and more than half are in H-1B or L-1 status.
Premium processing: $2,965, optional, for a faster USCIS decision.

For a mid-size, for-profit employer that isn't H-1B dependent, mandatory government fees on a cap petition come to $3,380 plus the $215 registration fee. Premium processing and attorney fees come on top. Legal fees vary widely by firm and case complexity, so get a written quote.

Remember the rule on who pays. The employer must cover the ACWIA fee, and you can't recover petition costs from the worker in ways that bring their pay below the required wage.

Check the DOL's H-1B requirements before setting any repayment terms.

The $100,000 fee and other 2026 changes

Where the $100,000 fee stands

A September 2025 proclamation required a $100,000 payment for certain new H-1B petitions, mainly for workers outside the U.S. who need consular processing. A Massachusetts federal court vacated it in June 2026, and the First Circuit declined to pause that ruling.

A new proclamation in September 2026 extended the policy through September 21, 2027. On September 30, 2026, a federal court in California also blocked the agency policies that carry out the fee, including the extension.

As of early November 2026, the fee isn't being collected. USCIS has said DHS still plans to collect it if the court orders are lifted, and appeals are pending. Treat this as unsettled and check with counsel before each filing.

Our breakdown of the $100,000 fee ruling covers the legal reasoning.

The separate $103,265 proposal

In August 2026, DHS proposed a separate $103,265 fee on cap-subject H-1B petitions through formal rulemaking. It's a proposal, not a final rule. The court orders against the $100,000 payment don't cover it, so it's worth modeling in your budget.

Lottery results and new scrutiny

The weighted lottery ran for the first time in the FY 2027 season.

According to the USCIS figures cited in our H-1B rule change tracker, registrations fell about 38% to 211,600, and there was no second lottery.

A September 18, 2026 executive order also directs DHS, the Department of Labor and the State Department to consider an employer's recent and planned layoffs when reviewing H-1B filings.

Implementation details aren't public yet, but companies that cut staff while filing new petitions should expect more questions.

Compliance after approval

Approval starts a set of ongoing obligations. These are the ones employers most often get wrong:

Pay the required wage. That includes periods when the worker is idle because of the employer, often called benching. The DOL's full-time employee fact sheet explains the rule.
Amend for material changes. A move to a worksite outside the area covered by the LCA usually needs a new LCA and an amended petition before the change.
Keep the public access file current. Store the LCA, wage documentation and notices where the DOL can review them.
Handle terminations properly. If you end employment early, notify USCIS and offer reasonable return transportation abroad.
Track dates. Extensions, green card steps and any family members' status all run on deadlines.

The DOL's Wage and Hour Division can investigate complaints, and penalties for willful violations can include back wages, civil fines and debarment from the program.

How staffing and consulting firms handle H1B sponsorship

Many H-1B tech professionals work through IT staffing and consulting firms that place them at client sites. That model works, but the sponsor has to stay the real employer.

In practice, that means the staffing firm controls pay, supervision and the right to end the assignment, even when the day-to-day work happens at a client. Each worksite also has to be covered by an LCA, which is why client changes trigger paperwork.

From the staffing side, the cleanest placements are the ones planned early. Confirm the work location, the client's remote or onsite rules and the wage level before the offer goes out.

Our guide to what visa sponsorship means covers how sponsorship works across employer types.

Common H1B sponsorship mistakes

Choosing a wage level at registration that the petition can't support with documentation.
Using vague job descriptions that don't clearly show a specialty occupation.
Moving a worker to a new client or location without checking whether an amendment is needed.
Passing costs to the worker that the law requires the employer to pay.
Leaving gaps in pay when a project ends and the worker waits for the next one.
Budgeting only for base fees and ignoring premium processing, legal fees and pending fee proposals.

Final thoughts on H1B sponsorship

H1B sponsorship still works for employers who plan ahead. Start with the role classification and wage level, register on time, and treat compliance as an ongoing job rather than a one-time filing.

With fees and rules still shifting, build a budget for more than one scenario and recheck the status of the $100,000 fee and the $103,265 proposal before each filing. If you'd rather not run the process alone, a staffing partner that already sponsors and employs H-1B consultants can take much of the paperwork and compliance off your plate.

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Key takeaways

H1B sponsorship is the employer's responsibility, from the LCA and petition to most of the fees.
The wage level you choose now shapes both lottery odds and what you must document in the petition.
Typical government fees for a mid-size employer total a few thousand dollars before premium processing and legal costs.
The $100,000 fee is blocked and not being collected as of early November 2026, but appeals and a separate $103,265 proposal keep costs uncertain.
Ongoing compliance, including wage, amendment and recordkeeping rules, lasts as long as the worker holds H-1B status.

FAQs

Can a worker sponsor their own H-1B?
No. A U.S. employer has to file the Labor Condition Application and the petition. Anyone offering to sell H-1B sponsorship to a worker is offering something illegal.

How much does H1B sponsorship cost an employer?
For a mid-size, for-profit employer, mandatory government fees on a cap petition total $3,380 plus a $215 registration fee. Premium processing adds $2,965, and some H-1B-dependent employers owe an extra $4,000. Legal fees vary by firm and case.

Is the $100,000 H-1B fee being charged right now?
As of early November 2026, no. Federal courts in Massachusetts and California have blocked it, even though a September 2026 proclamation extended the policy through September 2027. Appeals are pending, so confirm the status before you file.

How long does H1B sponsorship take?
For cap-subject hires, registration happens in March and the earliest start date is October 1, so plan on roughly seven months or more. Cap-exempt petitions and transfers can be filed year-round. Premium processing speeds up the USCIS decision, not the cap calendar.

Can a small business sponsor an H-1B worker?
Yes, if it has a genuine specialty occupation role, can pay the required wage and has a real employer-employee relationship with the worker. Small employers pay reduced I-129, ACWIA and Asylum Program fees. They need to meet the same compliance rules as larger companies.

What happens if our registration isn't selected?
You can register again in the next season, usually the following March. In the meantime, options may include OPT or STEM OPT if the candidate qualifies, a cap-exempt employer, or another visa category. FY 2027 had no second lottery, so plan for a single selection round.