13 Feb Effects of Increased Fees on H-1B Visas for Employees
H-1B visas are a type of nonimmigrant work visa that allow U.S. employers to hire foreign national professionals in specialty occupations — roles that typically require at least a bachelor’s degree or its equivalent in a specific field. These positions often include jobs in technology, engineering, healthcare, finance, architecture, education, and other industries where specialized expertise is essential.
For employers, the H-1B program is a valuable tool for filling critical skill gaps, staying competitive, and supporting long-term growth. For employees, it provides an opportunity to build a career in the United States, contribute their skills to American businesses, and potentially pursue a longer-term immigration path.
However, the H-1B visa application process has never been simple, and now it’s becoming more expensive. Recent increases in USCIS filing fees and related costs are having significant effects on companies and workers alike. These fee changes can impact both applicants and sponsors through higher upfront costs, stricter budgeting, and more pressure to “get it right” the first time (though notably, it does not affect renewals).
For employers and employees in Philadelphia and across the country, understanding how these increased fees influence hiring decisions, timelines, and mobility is more important than ever.
Overview of H-1B Visa Fees
One of the most confusing parts of the H-1B process is that there is no single “H-1B fee.” Instead, there are multiple government filing fees, and the total cost depends on the employer’s size, the type of petition being filed, and whether optional services like premium processing are used.
Below is a breakdown of the most common fees involved in an H-1B petition:
Base Filing Fee
This is the core USCIS filing fee for the Form I-129 petition. It is required for nearly every H-1B filing and is the foundation of the government cost.
ACWIA Training Fee
The American Competitiveness and Workforce Improvement Act (ACWIA) fee is designed to support U.S. workforce training programs. This fee varies based on the size of the employer, with higher costs for employers with more employees.
There are also certain exemptions, but many employers filing standard H-1B petitions will need to pay it.
Fraud Prevention and Detection Fee
This is another common mandatory fee, especially for new H-1B filings. USCIS uses this fee to fund fraud detection efforts and enforcement initiatives.
Public Law Fee (Additional Fee for Certain Employers)
Some employers are subject to an additional fee depending on how many H-1B or L-1 workers they employ. This fee typically affects employers with a high percentage of nonimmigrant workers.
Premium Processing Fee (Optional)
Premium processing is optional, but widely used. It allows employers to request faster USCIS processing for the petition. For many companies, it’s the difference between a manageable timeline and weeks or months of uncertainty.
Attorney Fees and Related Costs
While not USCIS fees, attorney fees, courier fees, and compliance-related expenses are part of the real cost of an H-1B petition. Many employers also incur costs for preparing Labor Condition Applications (LCAs), collecting documentation, and ensuring compliance with wage and posting requirements.
Recent Changes and Increases to H-1B Visa Fees
The USCIS fee increases have raised the overall cost of filing, and the financial impact is often most noticeable for employers filing new cap-subject petitions or multiple H-1Bs in a hiring cycle. Even for companies prepared to sponsor, higher filing costs can change internal decision-making.
For both employers and employees, these increases create an important reality: H-1B sponsorship is still possible, but it requires more planning, stronger budgeting, and fewer mistakes.
How Increased H-1B Visa Fees Affect Employers
For employers, higher H-1B costs aren’t just an accounting issue; they can change how companies recruit, plan, and operate.
Higher Hiring Costs
Many employers, particularly those hiring for specialized positions, already invest heavily in recruiting. When you add rising USCIS fees to the mix, the cost of bringing on an H-1B employee can increase substantially.
For larger corporations, these increases may be frustrating but manageable. For small and mid-sized employers, many of which make up the backbone of the Philadelphia business community, these costs can have a much bigger impact.
Pressure on Small and Mid-Sized Employers in Philadelphia
Philadelphia is home to a diverse range of industries, including healthcare systems, universities, biotech companies, financial institutions, and growing tech firms. Many of these employers rely on international talent, especially in hard-to-fill professional roles.
When filing fees increase, smaller organizations may be forced to make difficult choices, such as:
- Sponsoring fewer candidates
- Limiting sponsorship to only the most senior or specialized roles
- Delaying hiring until a future fiscal quarter
- Avoiding sponsorship altogether, even when the candidate is highly qualified
In other words, the increased fees can shrink opportunities — not because the job isn’t real, but because the financial commitment becomes harder to justify.
Greater Operational Risk
When fees rise, the cost of a denial becomes more painful. Employers may feel additional pressure to ensure every petition is thoroughly documented, properly filed, and strategically prepared.
A single missing document, unclear job description, or wage issue can lead to delays, Requests for Evidence (RFEs), or denials — each of which may require more attorney time, more internal effort, and sometimes additional filing expenses.
Budgeting and Long-Term Workforce Planning Challenges
Many employers plan hiring cycles months in advance. Increased fees can disrupt that planning, especially when the business is hiring multiple H-1B candidates or transferring employees between roles.
It also adds pressure to internal HR and legal teams, who must forecast costs more accurately and justify sponsorship as a business investment.
How Increased H-1B Visa Fees Affect Employees
Although employers are typically responsible for paying many H-1B-related fees, employees still feel the effects — often in very real and personal ways.
Fewer Sponsorship Opportunities
The most immediate impact on employees is that some companies may sponsor fewer workers. Even highly qualified candidates can lose out simply because an employer decides sponsorship is no longer financially feasible.
For foreign national professionals living in Philadelphia, this can be especially stressful. Many international students rely on the hope that a U.S. employer will sponsor them after OPT. If sponsorship becomes less common due to increased fees, it can narrow career options dramatically.
Longer Timelines and Potential Delays
Higher fees can also indirectly create delays. Employers may postpone filing until budgets are approved, internal leadership signs off, or hiring needs become urgent enough to justify the cost.
Employees may find themselves stuck in a waiting period, uncertain about:
- Whether the company will proceed with sponsorship
- When the petition will be filed
- Whether premium processing will be used
- When they can safely travel, relocate, or change roles
Even if the employee is ready and qualified, financial hesitation on the employer’s side can slow everything down.
Job Mobility Becomes Harder
One of the key benefits of H-1B status is the ability to change employers through an H-1B transfer. However, as fees increase, employees may find that fewer employers are willing to take on the cost of sponsoring a transfer, especially if the employee is early in their career or the role is not considered mission-critical. This can reduce job mobility and place employees in a difficult position: staying in a less-than-ideal role simply because transferring becomes harder financially.
Get Guidance on H-1B Visa Matters From Henry & Grogan
Increased USCIS fees are changing the landscape of H-1B sponsorship. For employers, these higher costs can influence hiring decisions, budgeting, and risk management. For employees, the impact can include fewer opportunities, delayed timelines, reduced job mobility, and increased personal stress.
If you have questions about H-1B visa matters or need help navigating the process, whether you’re an employer sponsoring a key hire or an employee pursuing your next opportunity, reach out to the experienced immigration attorneys at Henry & Grogan. Our team can help you understand your options, avoid costly mistakes, and move forward with confidence.