Sponsoring a worker on an Cap-subject and cap-exempt (H-1B)The H-1B category has an annual limit of 65,000 new visas or statuses per fiscal year, plus 20,000 more for people with a U.S. master's degree or higher. Petitions counted toward that limit are cap-subject. Petitions from higher education institutions, their related or affiliated nonprofits, and nonprofit or governmental research organizations are cap-exempt.See it in the glossary visa means an employer, not the worker, files with two different federal agencies before a single case reaches U.S. Citizenship and Immigration Services. Understanding that two-agency structure, and the costs attached to each step, is the difference between budgeting accurately and being surprised mid-process.
Two agencies, two separate steps
An H-1B case starts at the U.S. Department of Labor, not USCIS. The employer must first obtain a certified Labor Condition Application (LCA)A Department of Labor form, ETA-9035, that an employer files before petitioning for an H-1B, H-1B1 or E-3 worker. In it the employer attests to standards on wages, working conditions, labor disputes and notice to workers. A certified LCA is then used to support the petition filed with USCIS.See it in the glossary before USCIS will accept an H-1B petition at all. Only after DOL certification can the employer move to the second stage: filing Form I-129 with USCIS. For cap-subject cases, a third step, cap registration, sits between the two.
Step one: the Labor Condition Application
The LCA (Form ETA-9035) is the employer’s attestation that it will pay the required wage and that hiring the H-1B worker will not undercut conditions for U.S. workers. DOL typically certifies an LCA within seven business days. The certified LCA is valid for up to three years and cannot be filed more than six months before the requested H-1B start date. Because the H-1B petition cannot be filed without it, most employers begin the LCA process two to three months ahead of their planned USCIS filing date to leave room for delays.
Step two: cap registration and the new weighted lottery
Employers hiring a worker who is cap-subject, meaning the position does not qualify for a cap exemption, must first register the BeneficiaryThe person on whose behalf a petition is filed, such as the relative or worker who would receive the immigration benefit.See it in the glossary electronically in an annual window that typically opens in March. Only 85,000 new H-1B visas are available each fiscal year: 65,000 under the regular cap plus 20,000 reserved for workers with a U.S. master’s degree or higher.
This is the first cap season under a materially different selection process. USCIS replaced the random lottery with a wage-weighted selection system under a Final ruleThe version of a federal regulation that an agency publishes in the Federal Register after reviewing public comments on a proposed rule. It sets an effective date, which generally falls at least 30 days after publication, and its text is added to the Code of Federal Regulations.See it in the glossary that took effect February 27, 2026. Registrations are now entered into the selection pool multiple times based on the wage level the employer attests to, calculated against Department of Labor occupational wage data for the job’s location: a Level IV wage gets four entries, Level III gets three, Level II gets two, and Level I gets one. The final rule states the change is intended to favor higher-paid, higher-skilled roles while still leaving entry-level positions in the pool. For employers, this means the wage level selected at registration now directly affects the odds of selection, not just the LCA that follows.
Once a registration is selected, the employer has a 90-day window, typically April through June, to file the full H-1B petition. Missing that window forfeits the selection with no option to carry it into the next fiscal year.
Step three: filing Form I-129
The petition itself is Form I-129, filed with the certified LCA attached along with evidence that the position qualifies as a specialty occupation and that the worker’s degree or experience meets it. USCIS separately verifies that the wage level, job code and worksite on the petition match what was submitted at registration, so a mismatch between registration and petition can trigger scrutiny.
What H-1B sponsorship costs an employer
Government filing fees vary by employer size and depend on how many H-1B or L-1 workers make up the company’s U.S. workforce. The current USCIS fee schedule sets the following for a new cap-subject petition:
| Fee | 25 or fewer employees | More than 25 employees |
|---|---|---|
| Registration fee | $215 | $215 |
| I-129 base fee | $460 | $780 |
| ACWIA training fee | $750 | $1,500 |
| Fraud prevention fee | $500 | $500 |
| AsylumProtection granted to a person already in the United States or at a port of entry who meets the definition of a refugee and cannot safely return to their country.See it in the glossary program fee | $300 | $600 |
| Premium processingAn optional USCIS service, requested on Form I-907 with an additional fee, that sets a fixed time frame for USCIS to act on certain petitions and applications. Within that time USCIS must issue an approval, denial, request for evidence or notice of intent to deny, or open a fraud investigation. It speeds up when USCIS acts, not the standard the case must meet, and only some forms and categories are eligible.See it in the glossary (optional) | $2,805 | $2,805 |
A separate $4,000 Public Law 114-113 fee applies only to H-1B-dependent employers, defined as companies with 50 or more U.S. employees where more than half hold H-1B or L-1 status. Employers meeting that same 50-or-more, majority-H-1B-or-L-1 threshold are now also subject to a new 9-11 Response and Biometric Entry-Exit Fee on H-1B and L-1 filings, effective September 9, 2026. None of these figures include attorney fees, which are a separate, employer-paid cost on top of government filing fees.
Separately, a $100,000 fee tied to a 2025 Presidential proclamationA formal statement from the President addressed to the public. In immigration, proclamations are often issued under INA 212(f), which lets the President suspend or restrict the entry of noncitizens when the President finds their entry would be detrimental to the interests of the United States. The Supreme Court read that authority broadly in Trump v. Hawaii (2018), though courts have said it cannot override other parts of the INA.See it in the glossary applies to certain new H-1B petitions for workers outside the United States. That fee has been extended through September 2027 and its scope has shifted through litigation, so employers budgeting for a case that involves Consular processingApplying for an immigrant visa at a U.S. embassy or consulate abroad, as an alternative to adjustment of status inside the United States.See it in the glossary should confirm its current status before filing rather than assume last year’s figures still apply.
How long the whole process takes
For a cap-subject case, the realistic timeline runs from March registration to an October 1 start date, close to seven months, and that assumes selection on the first attempt. Within that span, DOL certification of the LCA typically takes about seven business days, while USCIS adjudication of the I-129 petition itself commonly takes two to six months under standard processing, varying by service center and case complexity. Premium processing shortens only the USCIS portion, guaranteeing action within 15 business days, but does not affect DOL processing or the registration and selection timeline.
Not every employer needs the lottery
Cap registration and the annual quota apply only to cap-subject H-1B filings. Institutions of higher education, nonprofit organizations affiliated with a university, and nonprofit or government research organizations are exempt from the cap and can file H-1B petitions at any point in the year, without registering in March or competing in the selection process. An employer unsure whether a specific role or worksite qualifies for cap exemption should confirm the position’s status before building a hiring timeline around it.
For a closer look at how H-1B sponsorship compares with the alternatives, see how it stacks up against an L-1 intracompany transfer and the TN visa for Canadian and Mexican professionals.