The H-1B Visa: What Is Changing & Why EORs Are the Way Ahead

The recent and sudden $100,000 fee proposal for new H-1B applications has, understandably, left many scrambling for answers. Many companies are already under financial strain, and these changes add another layer of complexity to their workforce planning. This has led to the rise of H-1B visa alternatives.

The H-1B, once considered a reliable pathway, is becoming increasingly cost-prohibitive for small and mid-sized firms.

Even with significant upfront costs, employers are not guaranteed approval due to the H-1B cap and lottery system. The H-1B cap still limits the number of visas that can be issued annually. Additionally, the infamous lottery remains in play, meaning your six-figure gamble could end in nothing but frustration and sunk costs.

So, today we’ll take a deeper look at the current state of the H-1B program. Then, we’ll explore alternative visa options and their limitations, and demonstrate why using an Employer of Record (EOR) is a smarter, more cost-effective solution for hiring global talent.

Ready to hire without limits?

1840 & Company helps you bypass H-1B restrictions and scale with top global talent at a fraction of the cost. Schedule your consultation today!

At a Glance: The Current State of the H-1B Visa

The H-1B visa program is now significantly more complex, unpredictable, and expensive for 2025.

Key changes include a beneficiary-centric registration system, which limits applicants to one registration per year, regardless of employer interest, thereby reducing the talent pipeline. Registrations for FY2026 dropped sharply, not due to decreased demand, but rather to stricter rules and higher fees.

A proposed shift to a weighted lottery system prioritizing higher wages or “desirable” jobs could price out small and mid-sized companies.

A new $100,000 application fee for new H-1B applications, announced in late 2025, adds to the cost and confusion. USCIS has also increased enforcement, requiring clear specialty occupations, prevailing wages, and more site visits. The FY2025 cap was met early, resulting in delays for many employers.

Key Takeaway: The H-1B visa, once an opportunity, now signifies risk and high costs.

Why Relying on H-1B Visas Is Becoming Unsustainable

The H-1B once offered predictability. You filed, you waited, and while there was always red tape, the costs were at least measurable.

That route doesn’t work anymore. The combination of spiraling expenses, shifting rules, and mounting compliance checks has created a headache-inducing environment for workforce planning.

Let’s look at why.

The Economics No Longer Add Up

Kicking things off with the math. Even before the introduction of the new $100,000 fee, employers were already liable for various charges. From filing fees to fraud prevention, attorney retainers, and optional premium processing.

For a mid-sized company sponsoring a handful of foreign national employees, the total bill could already run $7,000 to $10,000 per worker. Now add six figures on top of that.

Here’s what you’re looking at today:

Here’s what our CEO, Bryan Digiorgio, has to say:

“Specialty occupations that cannot be performed remotely or require physical presence will have to pay the fee. But those where their tools and resources can be accessed virtually will move to global EOR. This is likely to have no impact on the number of H1-B visas, but may disproportionately shift to specific fields, such as biology versus computer science.”

Unpredictability Has Become the Norm

Even if you can afford it, the H-1B doesn’t guarantee results.

The lottery system is a frustrating experience, with selection odds swinging wildly from one fiscal year to the next. In 2025, the number of applicants decreased, but the cap was still met, leaving thousands of businesses unattended.

The introduction of weighted selection adds another layer of uncertainty:

• Pay a high wage, and your chances improve.

• Pay less, and you risk losing altogether.

• It has become less of a predictable workforce strategy and more of an uncertain process dependent on external factors.

Compliance Risks Keep Growing

The U.S. Citizenship and Immigration Services (USCIS) has made it clear: every H-1B hire must withstand scrutiny. That means:

• Job roles must be carefully documented as a specialty occupation.

• Employees must hold the appropriate degree (typically a bachelor’s degree or higher, occasionally a master’s degree).

• Worksites may be subject to random site visits to verify employment conditions.

Even a small compliance oversight can trigger audits, delays, or petition rejections—creating risks that affect business continuity.

Timing Is Against You

H-1B visas are tied to the government calendar. You register in March, the results come later, approvals take time, and only then can your employee begin work.

If you miss the cycle, you’ll have to wait until the next lottery, possibly a full year before you can try again. Meanwhile, competitors may continue hiring talent not subject to lengthy immigration timelines, gaining an operational advantage.

READ MORE: The Role of EORs in Mitigating Tax Liabilities

The Alternative Visa Options You Can Pursue

If the H-1B visa feels like a broken business model, what else is out there? U.S. immigration services offer other pathways for foreign nationals, but each one comes with its own specific requirements, restrictions, or eligibility criteria.

Here’s the landscape:

• O-1 Visa (Individuals with Extraordinary Ability): For individuals with extraordinary ability in arts, sciences, business, or athletics, requiring significant proof like awards or publications. While uncapped, its exceptionally high bar makes it suitable for a select few, not most foreign workers.

• TN Visa (Canada & Mexico Only): The USMCA-created TN visa allows Canadian and Mexican professionals (engineers, accountants, scientists, etc.) to work in the U.S. indefinitely, renewed every three years. While flexible, it’s limited by nationality and approved occupations.

• L Visa (Intra-Company Transfer): The L-1A visa is for managers and executives, while the L-1B is for employees with specialized knowledge. Employees must have worked abroad for a related entity for at least one year. This visa suits multinational companies with overseas offices but excludes smaller firms without a global presence.

• F-1 Visa with OPT/STEM Extension: Foreign students can gain temporary work authorization through OPT (12 months) and a 24-month STEM extension, but these do not offer permanent residency.

• E-3 Visa (Australia Only): Available exclusively to Australian citizens, the E-3 visa covers specialty occupations similar to those of the H-1 B visa. Renewable indefinitely in two-year chunks, but again, it’s a country-specific visa that excludes 99% of the global workforce.

• H-1B1 Visa (Chile & Singapore Only): A close cousin of the H-1B, but limited to citizens of Chile and Singapore. It comes with a separate annual quota and cap exemption flexibility, but eligibility is tightly bound by nationality.

• E-2 Investor Visa: The E-2 visa is for treaty country nationals making a substantial investment in a U.S. business, renewable indefinitely if profitable. It’s for entrepreneurs, not employees, and not for employers filling roles.

• J-1 Trainee Visa: Allows foreign nationals to participate in structured training programs for up to 18 months. Useful for professional development, but not suitable for long-term or essential employees.

• EB-2/EB-3 Employment-Based Green Card: The employment-based green card process requires U.S. employer sponsorship and labor certification. The National Interest Waiver (NIW) can waive labor certification for work of national importance; however, it’s a lengthy process, often taking years before foreign national employees can begin work.

The Limits of Alternative Visa Categories

Looking at that list of visas, you might be tempted to think there’s always a workaround. But when you zoom out, the cracks show. These options aren’t scalable; they’re patchwork solutions at best.

If you’re considering an alternative visa, these are the limitations you should be aware of:

• Narrow eligibility: Most alternatives are tied to nationality (Australian citizens, Mexican nationals, Chileans, Singaporeans). If the right candidate walks in from a different foreign country, the door is closed.

• Academic dependency: Options such as OPT, CPT, and the STEM extension tie work authorization to a specific educational program. That’s fine for recent graduates, but useless for seasoned professionals.

• Short timelines: J-1 trainees typically max out after 18 months, whereas many L visa and TN visa holders require frequent renewals. You can’t build a stable workforce on countdown clocks.

• Complex compliance: Every visa type carries its own unique regulatory requirements. From proving specialized knowledge to verifying ties to a related entity abroad, employers face a tangle of paperwork that makes the green card process look straightforward by comparison.

• Family challenges: Even when you secure a visa, dependent status for spouses and children often comes with restrictions. Without reliable work authorization for family members, retention becomes a real issue.

• Bureaucratic bottlenecks: Whether it’s a consulate abroad delay or a missed window in the government’s fiscal year, timing is always working against you.

So, in short, yes, there are other visa categories. But they are country-specific visas, cap-exempt only in narrow cases, or limited to highly eligible applicants. If you’re trying to scale efficiently, these “options” feel less like solutions and more like traps.

This is why many local employers are shifting focus. Instead of betting the future of their workforce on fragile visa categories, they’re asking: what if we could hire top talent abroad without visas at all?

The Employer of Record (EOR) Advantage

Visa options are often restrictive, costly, and unpredictable for long-term workforce planning. An Employer of Record (EOR) offers a way out. Instead of forcing foreign workers through the pain of U.S. immigration services, you hire them where they already live. Legally, compliantly, and quickly.

At 1840 & Company, this is where we come in. We act as the legal employer in the foreign country while you direct the day-to-day work. Payroll, compliance, and benefits are on us. You get the talent you need, without the bureaucracy.

Here’s why more and more businesses are embracing the services of EORs:

The Cost Factor: A Fraction of the H-1B Price Tag

The new $100,000 H-1B fee has turned hiring into a nightmare. By contrast, hiring through an EOR eliminates the need for visa applications. Here’s our side-by-side view:

Predictability You Can Actually Plan Around

EOR hiring isn’t tied to the fiscal year or a government lottery. You don’t wait for visa quotas, and you don’t rely on random selection. You identify the talent, and the EOR handles the compliance; your new hire can begin work immediately.

This predictability gives you something H-1B cannot: the ability to make workforce decisions based on business needs, not government calendars.

Compliance Without Headaches

Each visa type has its own set of rules. With EORs, those hurdles disappear. They ensure compliance with local labor laws in the employee’s home country, covering payroll, benefits, and tax obligations.

Even industries tied to higher education, non-profit organizations, or non-profit research organizations benefit. Instead of hoping for a cap-exempt institution, you bypass the system entirely.

Flexibility for Scaling Teams

Visa processes are rigid by design. The EOR model is designed to be flexible. Whether you’re hiring one professional or building an entire team of foreign national employees, they scale with you.

That means you can pilot a project in one region, expand into another, and test new markets, without worrying about whether a cap exemption applies.

READ MORE: EOR Vs. Contractor: What’s the Difference & How to Decide

Partnering With 1840 & Company as Your EOR Solution

The Employer of Record model theoretically solves the visa problem. But what does it look like in practice? At 1840 & Company, we’ve built a system, with a proven track record, designed for executives who can’t afford uncertainty.

Here’s how we deliver:

1. Global Reach Without Borders: We connect you with vetted professionals in over 150 countries. Whether you need engineers, finance specialists, or essential employees in back-office functions, you’re not tied to one foreign country or one visa type.

2. Compliance Built In: Every hire comes with work authorization and full compliance. We manage payroll, taxes, and benefits in the employee’s home country, so you don’t have to worry about whether they can obtain employment authorization in the U.S. No dependency on cap-exempt employers, no risk of being denied by immigration services.

3. Faster Time to Hire: While an H-1B hire is stuck waiting for the next lottery and fiscal year cycles, we deliver fully vetted candidates in days. That means your foreign national employees can begin work immediately, with no delays or sunk costs.

4. Lower and More Predictable Costs: When you compare the math, the H-1B piles on six-figure fees, legal costs, and risk, while 1840 & Company offers one transparent service that cuts hiring costs by up to 70%.

5. Strategic Flexibility: Whether you’re piloting a small team or scaling globally, we adapt to your needs. Unlike the rigid timelines of visa options, we offer flexibility across markets, industries, and hiring volumes. You can build capacity in days, not years.

FAQs About the H-1B Visa

Given how complex and volatile the H-1B visa landscape currently is, here we’ll answer some popular questions about the visa itself.

Does an H-1B Visa Lead to a Green Card?

Yes. An H-1B visa can lead to a green card through employment-based sponsorship, as it allows for dual intent, enabling temporary work and permanent residence.

How Long Does it Take to Go From H-1B to Green Card?

The timeline from H-1B to green card varies, typically ranging from 1 to 3 years for some applicants to over 10 years, depending on country quotas and category.

What Happens if You Lose Your Job on an H-1B?

If you lose your job on an H-1B, you generally have a 60-day grace period to find new employment, transfer visas, change status, or depart the U.S.

Final Thoughts

The H-1B visa system has reached a breaking point. The introduction of a $100,000 fee transformed an already expensive and unpredictable process into something few businesses can reasonably sustain.

Alternative visa categories exist, but they are narrow, fragmented, and impractical for most employers.

That leaves you with a choice.

You can continue to gamble on lotteries, caps, and shifting rules, or you can step outside the system entirely. With an Employer of Record like 1840 & Company, you gain the freedom to hire the foreign workers you need without immigration bottlenecks, without lottery risks, and without bleeding six figures before a single employee begins work.

At 1840 & Company, we help you bypass uncertainty and scale smarter, with compliance, cost efficiency, and speed built in. Schedule your consultation today!

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