The recent $100,000 H-1B fee announcement sent shockwaves across corporate America. By the next day, companies like Microsoft, Amazon, and Goldman Sachs were already scrambling to send travel advisories for H-1B employees, while HR teams nationwide tried to decipher what this meant for their workforce.
Today, we’re decoding what all of this means for your business to identify what HR and finance leaders need to know right now. Of course, every company is different, so you’ll always want to consult with legal counsel before making any decisions. However, our goal is to present an idea of what the road ahead might look like for you, helping you prepare for a potentially bumpy hiring road ahead. Let’s begin.
Key Takeaways
- The effective date of 12:01 a.m. EDT Sept 21, 2025 means the fee is already in force for new H-1B petitions
- Current holders and renewals remain unaffected, but strategic planning for future hires demands immediate attention
- Budget impact could exceed $1M per 10 new international hires, fundamentally altering talent acquisition economics
H-1B Effective Date & Scope: Who’s Really Affected?
Here’s what we know with certainty: the new fee applies to petitions filed on or after September 21, 2025. More specifically, this targets outside-U.S. applicants—those workers physically located abroad when their employer files the petition. This distinction matters enormously for your planning.
Currently, USCIS/CBP/State implementation guidance confirms the fee is prospective only. That means your existing H-1B employees can breathe easier. They’re not subject to this fee when renewing their status or even when traveling internationally—at least according to current agency interpretations.
However, the outside-U.S. scope creates immediate challenges for several scenarios. Companies hiring directly from overseas face the full fee burden. Similarly, any current employee who happens to be abroad when you file their initial H-1B petition could trigger the requirement. Even returning employees who left the U.S. might fall under this costly new rule.
“New H-1B Petition”: An Uncertain Definition
While the proclamation uses the term “new petition,” the precise boundaries remain frustratingly unclear. Obviously, first-time H-1B filings and lottery registrations for the 2026 cap will count as new petitions. Beyond that, interpretation gets murky.
The change of employer (portability) questions represent perhaps the biggest gray area. When an existing H-1B worker switches companies, does that constitute a “new” petition requiring the fee? Initial guidance suggests that this may not be the case, at least if the worker remains in the U.S. But we simply don’t have definitive answers on this topic yet.
Similarly, change of status vs. amendment scenarios leave much room for interpretation and, thus, risk. Consider an F-1 student transitioning to H-1B status versus an existing H-1B holder filing an amended petition. The former seems clearly “new,” while the latter’s classification remains ambiguous. This cap-exempt ambiguity extends to universities and research institutions, leaving them wondering whether their traditionally different treatment continues. This is yet another area where things remain murky.
Financial Impact: The New Economics of International Talent
What we do know is this: the mathematics are stark and unforgiving. For instance, ten new H-1B hires now carry a $1 million surcharge—before accounting for legal fees, prevailing wages, or other costs. This reality fundamentally rewrites the ROI calculations for international recruitment.
Yet the burden isn’t distributed equally. Fortune 500 companies might absorb these costs as a necessary expense, but startups face existential questions about their talent strategies. But the small-business impact goes beyond simple arithmetic. When your entire seed funding might be $2 million, can you justify spending 5% on a single visa fee?
Moreover, entire sectors face disruption. Tech giants like Amazon (10,000+ H-1B workers annually) and consulting firms must reconsider their entire business models. Roughly thirteen of the top 30 H-1B employers are outsourcing companies whose margins simply can’t accommodate such fees.
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National Interest Exceptions: A Potential Lifeline
But it’s not all doom and gloom. The proclamation includes national interest exception provisions that could exempt individuals, companies, or entire industries. Granted, the complete lack of specific criteria makes planning for these exceptions nearly impossible, at least for the time being.
Potentially qualifying factors might include:
- National security and defense contractors
- Healthcare workers addressing public health needs
- Critical infrastructure roles
- Breakthrough research positions
Agencies haven’t yet clarified how employers request these exceptions or what evidence they’ll require. Unfortunately, this forces companies to proceed as if no exception exists while hoping for clearer guidance to emerge. The sweeping language—allowing exemptions for entire industries—suggests significant carve-outs could materialize, but banking on undefined exceptions presents obvious risks.
Other Pending Changes
Beyond the immediate fee crisis, two other major regulatory changes also loom on the horizon. First, the wage-based lottery proposal (DHS) published September 23 would revolutionize how H-1B visas get allocated. Under this system, highest-wage positions receive four times better odds than entry-level roles—essentially transforming H-1B into a program exclusively for senior positions.
Second, prevailing wage rulemaking (DOL) promises to increase required salaries across the board. During Trump’s first term, similar proposals would have raised entry-level engineering salaries by 30%. Combined with the lottery changes, these reforms would make junior international hires virtually impossible.
This is an area where the timeline matters significantly. The lottery proposal faces a 30-day comment period, potentially affecting the March 2026 lottery. Meanwhile, prevailing wage changes could emerge anytime, immediately impacting all H-1B positions. Needless to say, forward-looking, risk-averse employers are modeling these scenarios now rather than getting blindsided later.
Strategic Talent Implications: Adapting Your Workforce Strategy
Like it or not, these changes demand a fundamental reconsideration of many people strategies, not just minor compliance tweaks. Competition for domestic talent will intensify as companies chase the shrinking pool of work-authorized candidates. Universities report international student applications are already declining as students question whether American opportunities still exist.
Consequently, workforce planning requires new approaches. Many organizations are accelerating their offshore contractor relationships. In fact, some 70% of startups already use this workaround. Others explore alternative visa categories like the O-1 or EB-1A, though these have their own limitations.
But the ripple effects extend beyond hiring. Your current H-1B employees now have even greater leverage, knowing their replacement costs have skyrocketed. Thus, retention strategies, succession planning, and knowledge transfer all need reassessment under this new landscape.
Travel & Consular Processing Considerations
Of course, that intersection where travel and the new policy converge creates immediate practical challenges. Visa stamping requirements mean employees abroad need proof of payment before returning. Yet, as you might’ve guessed, procedures for verifying this documentation remain undefined.
Therefore, many employers are implementing travel freezes or strong advisories against international trips. The risk isn’t just inconvenience, though. In fact, an employee stuck abroad could derail project timelines and client commitments. Until consular verification of payment processes clarify, extreme caution should be the norm.
Furthermore, the proclamation mentions preventing B-1 business visa “misuse” for those with pending H-1B petitions. This suggests heightened scrutiny for any business travel involving prospective H-1B workers, adding yet another layer of complexity.
Employer Action Items: Your Immediate Checklist
So, what does all of this mean for leadership and owners? First and foremost, the most time-sensitive decisions demand a very structured approach.
Immediate Priorities:
- Map all current employees by visa status and location
- Identify pending petitions that might be affected
- Calculate budget impact for planned FY2026 hires
- Freeze non-essential international travel for affected employees
Months 1-2 Requirements:
- Establish documentation retention and payment proof protocols
- Review and revise international recruitment strategies
- Assess alternative visa categories for critical roles
- Engage legal counsel for company-specific interpretation
Your compliance and recordkeeping obligations now span multiple agencies. USCIS needs payment proof with petitions. The State Department requires verification for visa issuance. Meanwhile, CBP checks documentation at entry. Any missing step could strand employees overseas or torpedo petitions entirely.
Key Takeaways for HR and Hiring Teams
As the dust settles, several truths emerge from all of this chaos. First, the fact that current holders and renewals remain unaffected provides breathing room for existing teams. So, your employed H-1B workers don’t face immediate jeopardy, although their future mobility has decreased dramatically.
Second, the impact concentrates on cap-subject filings for workers abroad. Companies hiring from overseas or sending employees abroad during petition periods face the steepest challenges. Internal transfers and domestic status changes occupy gray areas requiring a case-by-case analysis.
Finally, as sobering as it is, this is just the beginning. Immigration lawyers predict immediate lawsuits challenging the $100,000 fee, and that’s before factoring in the lottery overhaul and wage increases. The entire H-1B program is entering uncharted territory.
Mosey Helps You Prepare for Uncertainty
The H-1B program’s transformation from accessible talent pipeline to luxury option happened virtually overnight. Yet, dwelling on disruption won’t help your organization adapt. Once again, forward-looking companies are already recalibrating their talent strategies, exploring creative alternatives, and building resilience into their workforce planning.
While managing these changes might feel overwhelming, you don’t have to navigate them alone. Yes, multi-state employers face particular stress as different locations, entity structures, and employment arrangements create a tangled web of compliance obligations. But that’s where Mosey makes the difference.
Our compliance platform helps companies manage the intricate requirements of multi-state employment—from entity registration to payroll tax accounts—so you can focus on strategic talent decisions rather than administrative headaches. As immigration rules tighten and compliance requirements multiply, having the right infrastructure becomes even more critical. Which means a partner like Mosey becomes more critical as well.
So, ready to build a more resilient approach to workforce compliance? Schedule a demo with Mosey today to see how we transform multi-state employment complications into a genuine competitive advantage.
