What Employers Need to Know About the Changing Visa Landscape

For many employers hiring international talent, the H-1B visa has long been the default sponsorship option. But amid higher costs, changing rules, and continued uncertainty around the program, employers may need to consider alternative visa pathways and build backup plans into their immigration strategy.

That was a key takeaway from Boundless’ recent webinar, Beyond Plan A: Navigating F-1/J-1 Changes, H-1B Fees, and the New Sponsorship Landscape.

Boundless Principal Immigration Counsel Tu Castillo and Supervising Immigration Counsel Brittney Quezada-Reed discussed what recent immigration changes mean for employers, when H-1B alternatives such as TN, J-1, O-1, and L-1 visas may make sense, and why companies should start planning well before an employee’s current status expires.

Here are some of the biggest takeaways.

The F-1 and J-1 landscape remains unsettled

In July, the Department of Homeland Security (DHS) issued a final rule that would replace the longstanding “duration of status” system for F-1 students, J-1 exchange visitors, and I visa holders with fixed periods of admission. The rule was scheduled to take effect Sept. 15, but a federal judge temporarily blocked its implementation on Sept. 14. For now, the existing duration-of-status system remains in place while litigation continues.

Employers should also be paying attention to increased scrutiny around Curricular Practical Training (CPT), which allows some F-1 students to work in positions related to their studies.

Castillo said employers are seeing different approaches from individual schools, making it's becoming increasingly important for employers to assess CPT on a case-by-case basis.

“I do think that there’s risk,” Castillo said about relying on CPT for new hires. Her advice for employers: understand the potential risk and have a contingency plan if an employee’s work authorization changes.

For employees who already have valid work authorization, employers generally do not need to change their normal onboarding process, the attorneys said. But HR teams should closely track expiration dates and begin evaluating longer-term options early.

H-1B costs remain a major source of uncertainty

Employers are also navigating two separate developments involving substantially higher H-1B costs.

The administration recently extended for another year a proclamation imposing a $100,000 payment requirement on certain H-1B petitions for workers outside the United States. However, the government’s implementation of that fee was struck down by a federal district court in June, and an appeals court subsequently declined to put that ruling on hold. The litigation remains ongoing.

Separately, DHS has proposed a $103,265 fee for all cap-subject H-1B petitions, on top of other applicable fees. That proposal is going through the federal rulemaking process and is not currently in effect.

Employers have more alternatives than they may realize

The H-1B may not always be the most practical, or easily available, path for a particular employee.

Castillo walked through several alternatives that can sometimes offer employers another route when an H-1B is unavailable or does not make sense.

TN status may be available to Canadian and Mexican citizens working in certain qualifying professions. J-1 programs can work for some interns, trainees, and research scholars, while the O-1 may be an option for individuals who can demonstrate extraordinary ability in their field.

The right option depends on the candidate’s nationality, qualifications, job duties, career history, and the employer itself. In other words, these visas are not interchangeable substitutes for the H-1B.

That makes it especially important to evaluate your options early. For example, an employee currently working on OPT or STEM OPT may have time to strengthen an O-1 profile or explore another pathway before their existing work authorization ends.

The L-1 can be a strategic option for multinational employers

The webinar also focused on the L-1, which allows qualifying multinational companies to transfer certain employees from a related foreign entity to the United States.

Unlike the H-1B, the L-1 has no annual lottery. Employers can file when the company and employee meet the requirements. It can also be useful for companies that already have operations outside the United States, or are planning their international footprint with future employee transfers in mind.

Quezada-Reed described the L-1 as different from many other alternatives because it is a pathway companies themselves can actively build toward.

That requires advance planning. Employers need to consider the relationship between their U.S. and foreign entities, where employees are working, how long they have worked abroad, and whether their roles meet the requirements for an L-1A manager or executive or an L-1B specialized knowledge employee.

For companies expecting to make multiple international transfers, developing an L-1 strategy before an urgent need arises can make future moves considerably easier.

Build immigration planning into workforce planning

One of the biggest takeaways from the webinar was for employers to start earlier.

Immigration planning should not begin a few weeks before an employee’s work authorization expires or after an H-1B registration is unsuccessful. Employers can identify potential pathways much earlier by tracking immigration timelines, understanding employees’ backgrounds, and discussing future sponsorship needs as part of broader workforce planning.

As Castillo put it: “It’s never too early. It is often too late.”

With immigration rules continuing to change, having a Plan B, and sometimes a Plan C, can give employers more room to respond without disrupting their workforce.

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