H-1B Rules Shift Focus to End Client Demands for Third-Party Placements

Key Takeaways

• New H-1B rules effective January 17, 2025, prioritize end client standards over employers for determining specialty occupations at third-party sites.
• Employers must submit end client letters with job title, duties, degree requirements, and assignment duration to meet USCIS criteria.
• First H-1B cap season under new rules begins March 7–24, 2025; USCIS to scrutinize documentation for third-party placements.

The new H-1B regulations, coming into effect on January 17, 2025, mark a major shift in how U.S. Citizenship and Immigration Services (USCIS) assesses H-1B work at third-party sites. These changes place greater emphasis on the requirements set by the end client, making it clear that their standards, not those of the petitioning employer, will determine whether a position qualifies as a “specialty occupation.” This shift underscores the need for H-1B employers to provide thorough and specific documentation to support their petitions, especially for roles located at third-party worksites.

End Client Letter: A Core Requirement

H-1B Rules Shift Focus to End Client Demands for Third-Party Placements

One of the most essential documents under the updated criteria is the end client letter. This letter acts as key proof when USCIS evaluates whether a job meets the specialty occupation requirements. The end client letter must include several details to satisfy these regulations:

Job Title: A clear title for the position being offered.
Job Duties: A detailed description of responsibilities associated with the role.
Degree Requirement: Information confirming that the job requires at least a bachelor’s degree in a specific field.
Duration of Assignment: The projected length of the project or job at the third-party worksite.

With this information, USCIS can evaluate whether the end client requires specialized educational qualifications for such positions. This documentation is paramount because USCIS will base its assessment more on the end client’s standards rather than the petitioner’s internal job specifications.

Supporting Evidence: Contracts and Agreements

Additional supporting documents are also necessary to show the scope, legitimacy, and standards of the work being performed. Employers placing H-1B beneficiaries at third-party sites should be prepared to submit:

Master Service Agreements: Legal documents outlining overarching arrangements between contracting parties.
Statements of Work (SOWs): Detailed records of the H-1B worker’s specific role and expected contributions to a project.
Work Orders or Purchase Orders: Proof of the project’s financial terms and the worker’s tasks.

Each of these documents helps USCIS understand the project’s specifics, the beneficiary’s role, and the job’s timeline. They ensure transparency and establish that legitimate, long-term employment in a specialty occupation is available to the H-1B beneficiary.

Specialty Occupation: Clear Evidence Required

A key provision under the new rules requires employers to definitively show that the position at the third-party worksite demands a degree in a specific field directly connected to the job. This is an essential criterion for proving that the role qualifies as a specialty occupation under H-1B regulations. Employers can demonstrate this requirement by providing:

End Client Letters: Indicating degree specifications.
Similar Job Postings: Adverts from the end client for related roles, proving the consistent need for specialized qualifications.
Organizational Charts: Showing how the position fits into the company and its higher-level operational needs.
Affidavits from End Client Representatives: Statements from supervisors or managers confirming the specialized nature of the job duties.

USCIS also stipulates that the degree must have a “logical connection” to the job itself. For instance, positions requiring advanced technical expertise, such as computer systems analysts or engineering consultants, need to show why degrees in computer science or engineering are relevant and critical. Ambiguity about the relationship between the work and the associated education could lead to petition denials.

Bona Fide Job Offer: Proving the Position’s Authenticity

The revised regulations also demand enhanced proof that a genuine job offer exists for the beneficiary. Employers must show that the stated job role exists on the indicated start date, particularly when assigning H-1B workers to projects at external client sites. This includes demonstrating:

The Specific Assignment or Project: Documented descriptions of the activity slated for the beneficiary.
The H-1B Worker’s Role: Details on the worker’s duties and deliverables within the project.
Assignment Timeline: Explicit duration of the work agreement, ensuring it matches the visa petition dates.
Employer Control: Proof that the employer retains authority over the worker throughout their stay.

Documents like project plans, job scopes, and evidence of the employer’s oversight authority are critical in portraying the bona fide nature of the role.

Labor Condition Application (LCA): Site-Based Accuracy

The Labor Condition Application (LCA) has always been a critical piece of the H-1B petition. However, under the updated rules, employers must ensure the LCA is precise and aligned with the third-party placement requirements, which include:

Wages: Ensuring the salary level aligns with the end client’s requirements, rather than just internal company policy.
SOC Codes: Using accurate codes for the job duties to highlight how they conform to professional, standard expectations.
Location Listing: Including all third-party worksites in the LCA filing.

USCIS will scrutinize LCAs closely to prevent discrepancies between wage levels, actual job duties, and required skills at the third-party site.

Preparing for Potential USCIS Site Visits

To ensure compliance with the new requirements, USCIS retains the right to conduct site visits, even at third-party worksites. Employers must proactively prepare by addressing three key points:

Informing end clients that USCIS inspectors may arrive to inquire about the H-1B worker, their role, and where they fit within the organization.
Keeping full and updated records of the worker’s assignments and details of their contributions to each project.
Ensuring readiness to assist USCIS officers during site visits to verify compliance with the H-1B program.

Noncompliance during these visits—such as lack of transparency or inaccurate records—could lead to petition denial or revocation.

Adjustment Period and Future Considerations

The effective date of January 17, 2025, marks just the beginning of this adjustment for H-1B employers. From February 19, 2025, businesses and immigration attorneys will gradually adapt to these enhanced criteria. The upcoming H-1B cap season for fiscal year 2026 is significant as it will be the first full cycle conducted under this new regulatory framework. Employers filing petitions for this period, with registration scheduled between March 7 and March 24, 2025, should anticipate closer scrutiny of third-party placement documentation, including the end client letter.

As reported by VisaVerge.com, businesses involved in third-party placements should closely monitor any additional guidelines or updates that USCIS might release. These guidelines could provide clarifications on unresolved questions, allowing employers to better align their petitions to the agency’s expectations.

Final Thoughts and Next Steps

Under the new H-1B regulations, the burden of proof for third-party placements has grown substantially. Employers must focus on producing detailed and accurate documentation, from end client letters to project timelines, to convincingly establish specialty occupation requirements and bona fide job offers. LCA precision and end client collaboration will remain pivotal in these petitions.

To stay compliant, employers should work with immigration experts and pay close attention to evolving USCIS guidance. For additional tools and official forms relevant to the H-1B process, businesses can refer to USCIS’s official resources. Ensuring readiness and thoroughness under this updated system will be key to securing H-1B approvals for third-party placements.

Learn Today

H-1B Visa → A U.S. visa allowing temporary employment in specialty occupations requiring specialized knowledge and a bachelor’s degree or higher.
Specialty Occupation → A job requiring advanced knowledge and at least a bachelor’s degree in a specific field directly related to the work.
End Client Letter → A document from the ultimate employer detailing job specifics to prove eligibility under H-1B specialty occupation criteria.
Labor Condition Application (LCA) → A required filing that ensures fair wages and conditions for foreign workers under U.S. employment visa programs.
Master Service Agreement → A legal document outlining the general terms and conditions of work between two parties in a contractual relationship.

This Article in a Nutshell

The 2025 H-1B regulation shift prioritizes end client demands over employer standards for roles at third-party worksites. Key documents like end client letters must showcase job duties and degree requirements. Employers must prepare meticulous evidence, including LCAs and contracts. Collaboration and compliance will define success in this tighter, scrutiny-focused immigration framework.
— By VisaVerge.com