
The FY2026 H-1B Cap Season is upon us! Employers who wish to sponsor employees for H-1B petitions should start to prepare their applications now to be ready for the lottery in March of 2025. The H-1B visa allows foreign nationals working in specialty occupations to seek employment in the USA for a three-year period. There are 65,000 H-1Bs available each year for foreign nationals with bachelor’s degrees and an additional 20,000 available for foreign nationals who received their master’s degree in the U.S. However, the demand for H-1Bs is higher than 85,000 and so USCIS runs a lottery each year to determine who may file an H-1B petition. In recent years, there has been about a 25%-31% chance of success in the H-1B lottery. For many employers, the lottery will be the only opportunity during 2025 to apply for an H 1B visa.
First Step: Registration
The first step in the H-1B cap process is filing a lottery registration online with USCIS. Registration involves submitting basic information about the employer and employee. Registration dates have not yet been announced but are typically open from early March until mid-March.
Second Step: H-1B Lottery Selection
After the close of the registration period, USCIS runs a random lottery and notifies those who are selected. Last year, the lottery winners were notified electronically by April 1st. Typically USCIS selects more than 85,000 registrants with the understanding that not all registrants will ultimately submit H-1B petitions. Those not selected are put on a waiting list. In FY2025 and FY2024, USCIS ran a second lottery in August and selected additional registrants off the waiting list because the initial lottery did not fill the H 1B cap. A second lottery does not happen every year.
Third Step: Filing the H-1B Petition
The H-1B petition must be filed within 90 days of selection, which is typically the end of June. To file the H-1B petition, the employer must first file a Labor Condition Application (LCA) with the Department of Labor, post required disclosures at the place of employment, and file the I-129 petition with USCIS.
Fourth Step: Start Working!
Approved H 1B applicants in the FY2026 cycle may start work on October 1, 2025 (the first day of FY2026) at the earliest. Some applicants who are changing status from F-1 OPT to H-1B may be able to benefit from the “cap gap,” which allows for OPT extension until the H-1B start date provided that the H-1B petition is filed before their OPT EAD expires.
Fifth Step: Renewal
The H-1B allows for a three-year renewal. We recommend that employers file the renewal petition six months before the initial period of H-1B expires. Certain H-1B beneficiaries can be eligible for renewals beyond 6 years if they have started the green card process.
New Regulations
New regulations affecting H-1Bs will take effect on January 17, 2025. Highlights include:
• F-1 students who are applying for H-1B status may now be able to extend their F-1 status and OPT work authorization until April 1 of the fiscal year for which H-1B status is requested. Previously, F-1 status and OPT work authorization were only extended until October 1.
• The rules revise the definition of “specialty occupation” and specify that an employer may accept various degrees to meet education requirements for a particular position, provided that the degrees are “logically connected” to the duties of the position.
• Employers must establish that they have a bona fide job opportunity available to the beneficiary as of the start date of the validity period requested on the petition.
• When processing requests for extensions, USCIS is expected to give deference to a prior H-1B approval provided that no material changes in circumstances, eligibility, or facts occurred and there are no material errors in the prior approval.
• The new rules give USCIS expanded power over workplace site visits to ensure that H-1B visas are not being abused. If an employer refuses to cooperate with site visits, the H-1B petition may be revoked or denied.
• Beneficiaries with ownership interest in the employing entity may seek H-1B visas; however, if the beneficiary has a more than a 50% ownership interest, H-1B status will only be approved for 18 months.
• The rules revise the definition of “nonprofit research organization” and “governmental research organization” which in effect expands cap exemption eligibility.
Schedule a consultation with us to discuss H-1Bs for your employees!