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The complexities of immigration have become even trickier for employers in recent months.
September introduced several proposed changes to the H1-B process that will significantly alter the ability of small business owners to hire H1-B eligible workers. Effective September 21st, 2025, President Donald Trump signed a proclamation requiring a one-time $100,000 application fee for employers filing new H1-B visas petitions. It is important to note that this fee applies specifically to workers outside the United States who do not currently hold a valid H-1B visa. The filing fee does not apply to current H-1B holders applying for an amendment, change of employer, or extension. It also does not impact workers departing and reentering the US later on an existing, valid H-1B visa, or to those who have filed Visa petitions prior to September 21st.
On September 24th, the Department of Homeland Security proposed changes to the H1-B lottery system that will impact how Visas are awarded. The proposed changes would move away from a purely random lottery selection to a tiered system favoring higher-skilled and higher-paid workers. If finalized, this new process would benefit employers who pay high wages should annual requests for visas exceed the statutory 85,000 limit. The cap for fiscal year 2026 has already been reached.
Mary Schroeder, Flex HR’s CHRO understands the problems this will cause small business owners, and the potential impact on the economy at large. “Smaller businesses and startups will have a hard time paying a one-time $100,000 application fee for employers filing H1-B visa petitions. This is a big increase from the $2,000 – $5,000 they previously had to pay,” says Mary of the proposed changes. “The result of the increase could cause economic problems as qualified workers could move to other countries as employers deter from paying such a large amount.”
The financial impact goes beyond the substantial application fee.
Even if a business were capable of paying the $100,000 fee, the ability of businesses – especially small and mid-sized businesses – to then compete with a higher salary may be out of reach. “Along with the higher cost for H1-B petitions, employers could face increased difficulty with the new selection process. Smaller companies and startups may not be able to pay a higher salary lowering the probability of being selected,” notes Mary.
This is an evolving situation, and we may see continued changes over the next few months. Flex HR is committed to keeping you informed as the situation unfolds.
If your business is concerned with how these changes will impact your workforce, it is recommended that you contact an immigration attorney. In the meantime, be sure your HR team is prepared to answer questions from concerned Visa holders in your workforce, and is developing a plan to mitigate any staffing issues caused by these changes. Flex HR has a team of experts ready to provide support. Contact us today to learn more!