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H1B

Lawyers Step In as H-1B Transfers Spark Widespread Panic

A $100,000 fee for new H-1B petitions filed while workers are outside the U.S., effective September 21, 2025, has caused hiring freezes and legal challenges. The fee excludes filings made while workers are physically in the U.S. Employers should document travel dates, prefer change-of-status when feasible, and seek case-specific legal counsel as agency guidance remains limited.

Last updated: October 9, 2025 3:22 pm
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Key takeaways
A $100,000 fee applies to new H-1B petitions filed for workers physically outside the U.S. as of filing.
Fee effective September 21, 2025, has prompted frozen hiring, paused transfers, and legal challenges nationwide.
Employers advised to document travel dates, prefer change-of-status filings for in-country candidates, and plan contingencies.

A sudden $100,000 fee on certain H-1B visa filings, announced by President Trump and effective September 21, 2025, has set off a rush of calls to law firms, paused hiring plans, and stirred deep concern across the tech sector and beyond. The White House clarified that the charge applies only to new H-1B petitions filed for workers who are outside the United States 🇺🇸 at the time of filing. It does not apply to people already in the country in H-1B status, and it does not hit current H-1B visa holders who remain with the same employer.

Yet confusion about gray areas—especially around pending cases, travel timing, and job changes—has driven many companies to put H-1B transfers on hold while they seek advice from immigration lawyers.

Lawyers Step In as H-1B Transfers Spark Widespread Panic
Lawyers Step In as H-1B Transfers Spark Widespread Panic

Immediate business reactions

In the days since the policy took effect, multinational employers have frozen some cross-border hiring and delayed onboarding plans that rely on bringing talent from abroad. Mid-size firms, especially in consulting and healthcare IT, describe a real-time reassessment of budgets and timelines.

Startups, already facing tight runway and hiring competition, say they worry about losing candidates who can’t wait out the uncertainty. Recruiters report some candidates—both abroad and in the U.S.—are asking whether they should pull back from job changes that involve H-1B transfers until rules settle.

The trigger for these reactions is not only the size of the $100,000 fee but the lack of granular guidance. Company counsels and outside attorneys say they are spending long hours reviewing the proclamation’s text, parsing agency statements, and building internal decision trees. Many workers, meanwhile, are relying on informal posts and group chats to understand if the fee could touch them.

Immigration lawyers caution that social media can spread partial or outdated claims during fast-moving policy shifts. They advise workers to get case-specific legal advice before traveling, changing jobs, or filing anything new.

Policy clarifications and unresolved questions

Attorneys say the most helpful clarification so far is the core scope: the fee attaches to new H-1B petitions filed for workers who are outside the country at filing, not to current H-1B holders already present in the United States 🇺🇸. That means common in-country actions—such as:

  • H-1B transfers to a new employer (if filed while the worker is in the U.S.)
  • Change in job location with the same employer
  • Extensions of stay

should not trigger the fee if the worker is physically present in the U.S. on the date of filing. However, lawyers stress that travel timing matters: if an employee departs and the employer files while the person is abroad, the case could fall into the fee bucket.

⚠️ Important
Do not assume transfers filed inside the U.S. are fee-exempt; confirm the specific filing posture and location to avoid exposure.

Because government guidance remains thin, employers are asking detailed “what if” questions about cross-border cases, including:

  • Whether someone who is abroad for a short trip when a cap-exempt petition is filed could be swept in
  • How consular processing requests will be treated if the worker later re-enters and the employer attempts to convert the case to change-of-status

Until agencies release more detailed instructions, attorneys are warning against assumptions. They urge employers to:

  • Document travel dates carefully
  • Confirm and record the worker’s physical location on the day of filing
  • Keep detailed evidence supporting the filing posture

Shifts in filing strategies and operational impact

Several large employers say they have shifted from consular processing to change-of-status filings for candidates already in the U.S. on another visa category. That approach may reduce fee exposure in some cases but can complicate onboarding timelines and travel plans.

The uncertainty has also reached vendors and clients. Consultancy contracts tied to quick start dates are being renegotiated, while in-house teams weigh whether project delays cost more than proceeding with cases that might incur the new fee.

Processing timelines and pressure points

  • Typical regular processing for H-1B transfers and other non-cap filings: 2.5 to 4 months
  • Premium processing timeframe: typically 15 to 30 days

Those windows can stretch if agencies request more evidence. In the current climate, even a modest delay can derail project starts or cause candidates to accept different offers.

According to analysis by VisaVerge.com, the announcement’s ripple effects reach far beyond tech. Universities, hospitals, finance firms, and manufacturing companies that depend on niche skills are re-checking headcount plans. Some organizations have created two-track hiring approaches:

  • Advance candidates already inside the U.S.
  • Postpone new international hires who might trigger the fee

Legal challenges and counsel guidance

Coalitions of law firms and non-profits have filed lawsuits challenging the $100,000 fee, arguing it conflicts with employment and immigration laws. Plaintiffs claim the executive action oversteps statutory limits and creates a barrier based solely on where a worker is physically located at filing. The cases also question whether the administration followed required procedures before rolling out such a measure.

Most attorneys warn clients to expect months of litigation and not to rely on a quick judicial rollback. In the meantime, immigration lawyers are steering clients toward risk-reduction measures. Common steps include:

  1. Confirm the worker’s physical location on the exact filing date and document it clearly.
  2. Where possible, file change-of-status petitions for candidates already in the U.S. rather than rely on consular processing.
  3. Avoid non-essential travel abroad before filing; if travel is required, plan filings around return dates.
  4. Build budget scenarios that account for a potential $100,000 fee when hiring from outside the country.
  5. Prepare for longer lead times and have contingency plans if regular processing extends beyond 2.5 to 4 months.
💡 Tip
Document the worker’s exact location on the filing date and keep clear records of travel dates to support compliance decisions.

Workers considering H-1B transfers are asking whether they should pause job changes. Lawyers say the answer depends on the worker’s location and the employer’s filing plan. For employees already in the U.S., many transfers can move forward without fee exposure if filed while the worker remains here. Attorneys recommend aligning start dates with realistic processing times and obtaining written plans for premium processing if needed.

Human stories and operational lessons

The human impact appears in daily casework:

  • One software engineer selected in the cap this spring and finishing a degree in the U.S. was advised to postpone a visit abroad so the employer could file a change of status and avoid fee risk.
  • A healthcare data analyst living overseas had a job offer re-scoped into a remote contractor role until the company evaluates whether to proceed with an H-1B under the new cost structure.

In both cases, immigration lawyers say tight communication between HR, hiring managers, and candidates made the difference between a broken plan and a workable one.

Employers want clearer public guidance from agencies. Without posted FAQs or a policy memo, many are relying on private calls and stakeholder meetings. Business groups are pressing officials to explicitly confirm:

  • That the fee does not apply to transfers filed inside the U.S.
  • How short-term travel interacts with the filing date

Companies say they need a reliable framework to plan budgets, vendor contracts, and client delivery.

Longer-term workforce adjustments

The policy’s reach underscores the central role the H-1B plays in the labor market. For years, companies have balanced the H-1B cap with strategies like cap-exempt filings and internal mobility. The new charge affects that planning, particularly for high-skill workers who begin overseas and later move stateside.

Some responses by employers include:

  • Considering other visa categories for early-stage talent
  • Keeping roles abroad longer
  • Increasing staff in nearby countries (a few multinationals are expanding Canadian 🇨🇦 hubs)
  • Strengthening internship and STEM OPT pipelines to create more candidates already in the U.S.
  • Investing in training U.S.-based employees to cover near-term gaps

These moves are not quick fixes, but they can soften the shock of abrupt policy shifts.

Where to find authoritative information

For official baseline rules on eligibility, evidence, and processing options, attorneys point to the U.S. Citizenship and Immigration Services H-1B page as the main source:

  • the U.S. Citizenship and Immigration Services H-1B page as the main source

Lawyers note that updates on the new fee will likely arrive through agency news alerts or policy guidance, and they reiterate that even straightforward policies often raise complex timing and procedural questions in real cases.

How law firms and HR teams are responding operationally

Inside law firms, teams are splitting work between client triage and litigation strategy:

  • Senior partners handle employer briefings and high-impact filings.
  • Litigation groups draft complaints and coordinate with advocacy organizations.
  • Paralegals and case managers build checklists focusing on: where is the worker today? what is the filing posture? does the plan change if travel is needed?

This structure helps firms manage the wave of inquiries while keeping each case aligned with the latest interpretation of the proclamation.

HR leaders are also rethinking talent pipelines:

  • Strengthening internship and OPT paths to increase in-country candidate pools
  • Investing in upskilling U.S.-based team members to cover near-term gaps

These are longer-term mitigations rather than immediate solutions.

Key takeaways and practical advice

  • The $100,000 fee applies to new H-1B petitions for workers outside the country at filing.
  • It does not apply to current H-1B holders or to filings made while the worker is physically inside the United States 🇺🇸.
  • Despite these core points, employers are pausing some H-1B transfers out of caution.
  • Immigration lawyers recommend: careful case planning, strong documentation of travel and location, and clear internal travel policies until agencies provide fuller guidance or courts weigh in.

For the latest official resources, consult: the U.S. Citizenship and Immigration Services H-1B page as the main source

VisaVerge.com
Learn Today
H-1B → A U.S. nonimmigrant visa for specialty-occupation workers requiring theoretical or technical expertise.
Change-of-status → A request to USCIS to alter an individual’s immigration status without leaving the United States.
Consular processing → Completing a visa application at a U.S. consulate abroad to obtain a visa before entering the United States.
Premium processing → An expedited USCIS service that speeds adjudication, typically within 15 to 30 days for eligible petitions.
Cap-exempt → H-1B petitions not subject to the annual numerical cap, often for certain employers like nonprofits or research institutions.
Filing date → The specific date USCIS receives a petition; a worker’s physical location on this date can determine fee liability.
Change in job location → An employer-filed update reflecting a worker’s new worksite; if filed while the worker is in the U.S., it typically avoids the new fee.
Parole/Travel timing → The timing of an employee’s departure or return; leaving the U.S. before filing can trigger the fee for new petitions.

This Article in a Nutshell

The administration introduced a $100,000 one-time fee effective September 21, 2025, applicable to new H-1B petitions filed for workers physically outside the United States at the time of filing. The announcement triggered immediate operational responses: multinational employers froze some cross-border hiring, startups delayed offers, and legal firms fielded heavy client demand. Core clarifications state the fee does not apply to current H-1B holders in the U.S., transfers filed while the worker is present, or extensions. Major uncertainties remain around travel timing, pending cases, and consular processing. Employers are shifting strategies—favoring change-of-status when possible—documenting travel, and preparing for litigation that could last months. Authorities and business groups face pressure to publish detailed guidance; meanwhile, attorneys recommend case-specific legal advice and rigorous documentation to reduce exposure.

— VisaVerge.com
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Robert Pyne
ByRobert Pyne
Editor In Cheif
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Robert Pyne, a Professional Writer at VisaVerge.com, brings a wealth of knowledge and a unique storytelling ability to the team. Specializing in long-form articles and in-depth analyses, Robert's writing offers comprehensive insights into various aspects of immigration and global travel. His work not only informs but also engages readers, providing them with a deeper understanding of the topics that matter most in the world of travel and immigration.
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