H-1B and L-1 visa workers may cost US employers thousands of dollars more

Employers could soon be required to pay additional fees to extend work visas for foreign employees under a new proposal by the Department of Homeland Security (DHS). The proposed rule would mandate a $4,000 fee to extend an H-1B visa and a $4,500 fee to extend an L-1 visa. This is part of the 9/11 Response and Biometric Entry-Exit Fee, which currently applies only to initial visa petitions and changes of employers.

The 9/11 Response and Biometric Entry-Exit Fee was established to fund national security programs, including systems to track the entry and exit of non-U.S. citizens. This fee, initiated by the Consolidated Appropriations Act of 2016, applies to certain H-1B and L-1 visa petitions.

Current Fee Structure

Currently, employers with 50 or more employees in the United States, where over 50% of these employees are on H-1B or L-1 visas, must pay this fee for initial petitions or when there is a change of employer. The fees are $4,000 for H-1B petitions and $4,500 for L-1 petitions.

Proposed Changes

The new rule proposes extending these fees to cover visa extension petitions as well. This means that employers would need to pay the $4,000 or $4,500 fee not only for initial petitions or changes of employer but also for extending the employment period of existing H-1B or L-1 visa holders.

Reasons for the Change

DHS has outlined several reasons for this proposed change:

  • Increased Funding Needs: The expanded fee will provide additional funds necessary for the biometric entry-exit system’s continued operation and enhancement.
  • Consistency and Fairness: The change aims to ensure that the fee applies uniformly across all petition types, promoting fairness.
  • Enhanced Security: Adequate funding will help maintain and improve the biometric entry-exit system, which is essential for monitoring immigration and enhancing national security.

Impact on Employers

If implemented, the rule will increase costs for employers who rely heavily on H-1B and L-1 visas. Companies with a significant number of visa extensions may face substantial financial burdens, potentially leading them to reassess their hiring strategies and approach to extending employment for foreign workers.

The DHS is currently seeking public comments on the proposed rule. Stakeholders and the general public have the opportunity to provide feedback until July 8, 2024.

 

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