Increment On Fees for H-1B and L-1B Visa Extensions—DHS

The U.S. Department of Homeland Security (DHS) is expected to implement a new H-1B extension fee for employers of skilled international workers on the H-1B visa. The proposed new rule would require a charge of $4000 for all H-1B visa extensions—a move that aims to curb visa fraud and enhance national security.

It will further impose an additional $4,500 for any L-1 visa extension that enables companies to transfer their managers and executives from overseas offices to the United States. These new extension fees are expected to take effect from July 8, 2024.

Currently, only companies with more than 50 employees and over half of this workforce on either an H-1B or L-1 visa must pay these fees as stipulated by the 911 Response and Biometric Entry-Exit Fee imposed in 2015. However, this obligation would be stretched by the new decision to include all petitions for H-1B and L-1 visa extensions.

International business school students wishing to work in the U.S. typically prefer applying for the H-1B visa program. After being sponsored by an employer who petitions the United States Citizenship and Immigration Services (USCIS), they can stay in America for three years post-completion of a higher education degree.

The United States L-1 visa allows U.S. companies to bring in managers and executives from their international offices. “These proposed changes aim to strengthen our immigration system and ensure the integrity of employment-based visa programs while safeguarding national security,” said the DHS.

DHS has proposed such changes, which have received adverse reactions. However, it is uncertain if these regulations will be imposed since they haven’t yet been approved. This means the new H-1B and L-1 visa extension fees cannot be enforced until a final verdict.

This change imposes additional costs on businesses hiring foreign talent but is considered justified for enhancing national security.

What will change?

Employers with 50 or more employees in America, with more than 50% being H-1B or L-1 visa holders, must pay the fee when applying initially or upon changing employers. An H-1B petition costs $4000, whereas an L-1 petition costs $4,500. Under the DHS proposal, these same charges should apply when submitting visa extension applications.

What will be the outcome?

If implemented, employers relying heavily on H-1B and L-1B visas would face financial strains, making them reconsider their hiring strategies.