Employers Guide to H-1B in 2026: The Five-Step Process

The H-1B is the most common employer-sponsored work visa for skilled foreign hires and it involves a complex legal strategy. It requires a filing with the Department of Labor (DOL), a separate petition with U.S. Citizenship and Immigration Services (USCIS), wage rules enforced by the DOL Wage and Hour Division, and termination requirements that can leave an employer paying a wage to someone who no longer works there.

This guide walks through the H-1B process for U.S. employers in 2026 in five steps, with the costs and the post-approval compliance obligations that go with each.

Step 1: Confirm the Role Qualifies as a Specialty Occupation

The H-1B is reserved for specialty occupations: roles that require the theoretical and practical application of a body of highly specialized knowledge and that typically require at least a U.S. bachelor’s degree (or its foreign equivalent) in a specific field. A job description that lists a degree as preferred but not required, or that accepts a wide range of unrelated degrees, is the most common reason for USCIS to deny an H-1B petition.

Before the filing starts, confirm both that the role qualifies and that the beneficiary holds the required degree or a documented equivalent.

Step 2: Register for the Cap Lottery (If Cap-Subject)

The H-1B cap is 65,000 visas per year plus 20,000 reserved for U.S. master’s-degree holders. Cap-subject petitions begin with electronic registration with USCIS. The FY2027 registration window ran from March 4 to March 19, 2026, with selection results announced by March 31 and the petition filing window opening April 1, 2026. Petitions for workers already in H-1B status (transfers, extensions, amendments) and petitions filed by cap-exempt employers (higher education and certain non-profit or government research organizations) are not subject to the cap.

For FY2027, USCIS started implementing a new wage-weighted selection process under a DHS final rule published December 29, 2025 and effective February 27, 2026. Prevailing wage is set at one of four levels based on the role’s experience, judgment, and supervisory requirements. Level I registrations (entry, roughly the 17th percentile of the occupation) receives one selection chance, Level II (qualified, 34th) receives two, Level III receives three (experienced, 50th), and Level IV receives four (fully competent, 67th). Higher-wage registrants are more likely to be selected, but selection is not guaranteed at any level. 

Step 3: File the Labor Condition Application (LCA)

Once a registration is selected (or for cap-exempt cases, before the I-129 is filed), the employer prepares and submits the LCA (Form ETA-9035) to DOL. The LCA is the employer’s attestation that hiring an H-1B worker will not adversely affect U.S. workers’ wages or working conditions. It requires the employer to specify the worksite, the actual wage, the prevailing wage, and the source of the prevailing wage determination. There is no DOL filing fee, and certification typically takes about seven business days. See the DOL prevailing wage program for the underlying data.

Selecting the right prevailing wage level (Level I, II, III, or IV) is the most consequential strategic decision in the filing. Under-leveling a senior role is a top cause of RFEs, which can slow down time-to-hire, and under the FY2027 wage-weighted lottery, lower levels also receive fewer selection chances.

Step 4: File the I-129 Petition and Pay the Government Fees

With the LCA certified and (for cap cases) the registration selected, the employer files Form I-129 with USCIS during the 90-day window beginning April 1. 

As of June 1, 2026, a cap-subject H-1B filed by a for-profit employer with more than 25 U.S. employees carries about  $3,380 in mandatory government fees in 2026: a $780 I-129 base fee, $1,500 ACWIA training fee, $500 Fraud Prevention and Detection fee, and $600 Asylum Program Fee. Small employers (25 or fewer full-time employees) pay reduced amounts of $460, $750, and $300 respectively. 

Employers with 50 or more U.S. employees where more than half hold H-1B or L-1 status add $4,000 under Public Law 114-113. The $215 electronic registration fee is paid separately during the cap-registration window. The current fee schedule is published as USCIS Form G-1055; our H and L filing fees page explains which fees apply to a given filing. 

Step 5: Decide Whether to Use Premium Processing

Premium processing is optional and when available guarantees a USCIS decision (approval, denial, RFE, or Notice of Intent to Deny) within 15 business days for an additional $2,965. It is worth using for cap-subject hires with fixed start dates, change-of-status cases where the worker’s current status is expiring, and amendments where the worker needs to begin at a new location quickly. For routine extensions where the worker has continuing work authorization, standard processing is usually fine.

After Approval: Ongoing Compliance Obligations

An H-1B approval is the start of the compliance work, not the end. The DOL Wage and Hour Division can audit an employer’s H-1B records without notice, and back-wage claims by current and former H-1B workers are routinely upheld where the employer skipped a compliance step. The four obligations that most-often catch employers off-guard are:

• Public Access File. Create a Public Access File (PAF) within one working day of filing the LCA. It must include the certified LCA, the wage and prevailing wage documentation, the source of the prevailing wage determination, evidence the LCA notice was posted at the worksite for 10 business days, a summary of benefits, and an explanation of the actual wage system. See DOL Fact Sheet #62F for the complete list.
• Wage obligations during nonproductive time. Companies are required to pay the LCA wage during all nonproductive time related to employment, including lack of work and training. This is why traditional unpaid furloughs are incompatible with H-1B status; you must either keep paying, or move to a bona fide termination.
• Worksite changes. A move outside the certified metropolitan statistical area requires a new LCA and an amended H-1B petition filed before the worker reports to the new site (per Matter of Simeio Solutions). Moves inside the same MSA do not require an amendment. 
• Bona fide termination. Ending H-1B employment requires three steps: explicitly terminate the employment relationship, notify USCIS by withdrawing the I-129 petition, and offer the reasonable cost of return transportation. Skipping any step leaves the wage clock running even after the worker is off payroll.

Why Work With Manifest on H-1B

H-1B compliance is an ongoing obligation. It spans HR, payroll, legal, and facilities, and it has to be defensible against a no-notice DOL audit. Manifest’s business immigration team builds and runs that infrastructure for high-growth startups and scaling employers. Every corporate case is staffed with a named attorney of record and a minimum two-attorney review on every petition. 

Manifest’s attorneys average more than 11 years of immigration experience, the leadership bench includes former USCIS officials and a former Partner at BAL, and the firm is SOC 2 Type II compliant with live integrations into Rippling, Workday, Gusto, Deel, Greenhouse, Ashby, and Lever. Manifest’s H-1B pricing starts at $3,475 per case, with no retainer, no hourly billing, and no charges for strategy calls, candidate evaluations, or H-1B registration and enrollment.

Request a consultation with Manifest Law’s business immigration team to review your current compliance posture and compare your program economics against a flat-fee model.

Frequently Asked Questions

Q: How much does an H-1B cost an employer in 2026?

Mandatory government fees for a cap-subject H-1B from a mid-size for-profit employer in 2026 total $3,380: $780 I-129 base fee, $1,500 ACWIA training fee, $500 Fraud Prevention and Detection fee, and $600 Asylum Program Fee. Small employers (25 or fewer FTEs) pay $460, $750, and $300 respectively. Optional premium processing adds $2,965, and the electronic registration fee is $215 paid separately during the cap-registration window. Attorney fees are separate. Read more about H-1B costs for employers here.

Q: When is the FY2027 H-1B cap registration window?

The FY2027 H-1B electronic registration window ran from March 4 through March 19, 2026. USCIS announced selection results by March 31, 2026, and the petition filing window opened April 1, 2026. Selected registrants have a 90-day filing period to submit the I-129 petition. The cap is 65,000 visas plus 20,000 reserved for U.S. master’s-degree holders.

Q: What is a bona fide termination and why does it matter?

A bona fide termination is the only way to end H-1B employment that releases the employer from continuing wage liability. It requires three steps: explicitly terminate the employment relationship, notify USCIS by withdrawing the I-129 petition, and offer the reasonable cost of return transportation to the worker’s home country. Skipping any step leaves the wage clock running, even after the worker is off payroll. The DOL has consistently upheld back-wage claims where employers omitted the USCIS withdrawal or the return-transportation offer.

Building or scaling an H-1B program in 2026? Request a consultation with Manifest Law’s business immigration team to review your current compliance posture and compare your program economics against a flat-fee model.