By Miranda Zolot, General Counsel, Oyster
When the administration announced a $100,000 H-1B petition fee in September 2025, HR leaders had the same reaction: What now?
The answer isn’t simple, but it’s also not hopeless. While these reforms fundamentally change H-1B economics, they also create opportunities to build more resilient global talent strategies. Here’s what employers need to know—and the practical steps to take right now.
What Changed—And What it Means for You
As a refresher: H-1B visas allow U.S. employers to temporarily fill specialty occupations—typically roles requiring at least a bachelor’s degree—with foreign talent. These non-immigrant, employer-sponsored visas last three years and can be extended to six.
The process has always been competitive since USCIS caps the number of H-1B visas it grants at 65,000 annually, with an additional 20,000 available for workers with master’s degrees. The application process itself is complex and time-intensive, and ultimate selection happens through a lottery.
Now, two major reforms are reshaping the landscape:
- The $100,000 petition fee. Effective as of September 21, 2025, all new H-1B applications—not renewals—carry this fee.
- The proposed wage-weighted lottery. DHS has proposed replacing the current lottery with a wage-weighted lottery that gives additional “entries” based on wage The highest wage earners, Level IV, would get 4 entries, Level III getting 3, Level II getting 2, and the lowest wage earners, Level I, would get just 1 entry.
Under this system, a Level I software developer in San Francisco (~$102,000) would get one lottery entry while a Level IV mechanical engineer in Dallas (~$119,000) would get four entries. Notably, the proposal is location- and position-agnostic; it simply favors visas for the highest wage-level jobs.
What Employers Should Do Right Now
Take a deep breath. First things first: renewals aren’t subject to the new fee. So, if you have existing H-1B holders whose visas need extension, those costs remain unchanged. And the wage-weighted lottery is still in public comment through late October, meaning implementation isn’t immediate.
The uncertainty around timing has triggered a surge in H-1B transfers and extension filings as workers and employers try to get ahead of potential changes. If you’re considering a transfer or extension, don’t wait—processing times are already stretching, and the sooner you file, the better your odds of avoiding implementation complications.
Smart employers are planning now. Here’s your action plan:
1. Audit Your Pipeline
Identify roles in the H-1B queue and assess whether the $100,000 investment makes strategic sense. For positions with salaries significantly below that threshold, you’ll need to rethink your approach.
2. Review Wage Levels by Role
While we are considering salaries, review your roles under the proposed wage-weighted system to understand which positions will be most competitive. Not all applications will have equal odds and a low-salaried position may not be worth the application fee, especially given the limited entries the wage level may garner.
3. Explore Alternative Visa Pathways
H-1B isn’t your only option. Consider:
- L-1 visas for intracompany transfers
- O-1 visas for individuals with extraordinary ability
- TN visas for Canadian and Mexican professionals
- E-3 visas for Australian nationals
- Cap-exempt H-1Bs for roles at universities, nonprofit research organizations, or affiliated entities—these aren’t subject to the annual lottery
Each has specific eligibility requirements, but diversifying your visa strategy reduces reliance on lottery odds.
4. Explore STEM OPT Extensions
For recent graduates on F-1 student visas, STEM Optional Practical Training extensions allow up to 36 months of work authorization in STEM fields. This provides a critical bridge while you explore longer-term visa options—and it doesn’t depend on the H-1B lottery at all.
5. Consider Employer of Record (EOR) Solutions
If talent can’t come to you, bring opportunities to them. EOR services like Oyster legally employ foreign nationals in their home countries on your behalf, managing payroll, benefits, and compliance. This isn’t a substitute for U.S. work authorization, but it’s a practical solution when:
- You want to retain talent who can’t secure U.S. visas
- You need to access global markets without establishing foreign entities
- You want to mitigate compliance risk in unfamiliar jurisdictions
EOR arrangements give you flexibility when relocation isn’t immediately feasible or economical.
Building a Lottery-Proof Strategy
The companies that thrive won’t be the ones gaming the H-1B system, they’ll be the ones building talent strategies that don’t depend on lottery odds at all. For roles where long-term stability matters, consider green card sponsorship through PERM labor certification, EB-1 extraordinary ability, or national interest waivers. Though lengthy, permanent residency eliminates visa uncertainty entirely.
This means:
- Creating location-agnostic roles where talent can contribute from anywhere
- Designing career pathways that don’t hinge on visa status
- Investing in global infrastructure—legal entities, EOR partnerships, mobility programs—before you urgently need them
- Treating distributed hiring as a competitive advantage, not a consolation prize
What Happens If Your H-1B Is Denied?
Denials happen. Often because employers don’t appear sufficiently established or because the role doesn’t qualify as a specialty occupation under USCIS definitions. If this happens, you can refile or appeal.
But here’s the thing: one misstep in the application process can tank the petition. H-1B requirements are stringent, timelines are tight, and the stakes are high.
This is precisely why forward-thinking companies are building hiring strategies that don’t solely rely on visa approvals. When you have alternatives in place—whether that’s EOR arrangements, alternative visa pathways, or distributed team structures—a denial isn’t catastrophic. It’s a detour.
The Human Cost of Inaction
Beyond policy mechanics, there’s a human dimension HR leaders can’t ignore. Visa anxiety erodes retention, creates inequities between team members, and forces talented people to make career decisions based on immigration status rather than growth potential.
When employers treat global hiring as a compliance problem rather than a talent opportunity, they lose twice: once in the lottery, and again when great people leave for companies with better options.
The Path Forward
These H-1B changes are forcing a conversation many companies have been avoiding: what does a truly resilient talent strategy look like? The answer involves getting comfortable with distributed teams, understanding multiple visa pathways, and building infrastructure that doesn’t collapse when one regulatory door closes.
Companies that diversify now—combining strategic H-1B applications with EOR partnerships, alternative visas, and remote-first roles—will have options when their competitors are scrambling. And in a talent market this competitive, optionality is everything.
The lottery was never a talent strategy. It was a gamble. Now’s the time to build something better.
About the Author
With over 20 years of experience, Miranda Zolot is a seasoned leader and a legal creative who loves helping people and businesses succeed. She is passionate about legal innovation, with IDEO and Legal Creative certifications, and is helping move the EOR industry forward through her work with GEIO, Global Employment Innovation Organization.
As the General Counsel at Oyster, Miranda is building a legal framework for making cross-border employment easier, supporting global expansion for businesses, and helping to bring remote work to talented people everywhere. She leverages her expertise in employment law, litigation, information risk management, and legal operations to deliver forward-thinking, business-minded solutions that produce sustainable results. Miranda is a strategic business partner and adviser to the senior management team, and a hands-on leader of a diverse and collaborative legal team.