Why Employers Should Include TN, E-2, and L-1 Employees in the H-1B Lottery

Each year, many employers limit H-1B lottery registrations to employees who “need” H-1B status right away. Employees already working in the U.S. under TN, E-2, or L-1 status are often left out.

That approach can create avoidable risk.

Even when an employee is authorized to work today, their current status may not support long-term employment, international travel, or a smooth path to permanent residence. Registering these employees in the H-1B lottery can help employers protect key talent and reduce future disruptions.

Here’s why.

H-1B registration is often a strategic decision, not a last-minute fix. Talk to Boundless to assess which employees to include.

Most Work Visas Do Not Allow Dual Intent

The H-1B is one of the few work visas that allows dual intent. This means an employee can pursue a green card while remaining in valid temporary status and continuing to travel internationally.

Many common work visas do not offer this flexibility.

Employees in TN, E-2, H-1B1, and similar statuses may face problems later in the green card process. At advanced stages, they may not be able to renew their status or reenter the U.S. after travel because their visa category does not permit immigrant intent.

If a green card application is denied at that stage, the employee may be required to leave the United States immediately, with no backup status.

Holding H-1B status can provide a safer bridge during this period.

L-1 Status Comes With a Hard End Date

L-1 status is often viewed as a long-term solution, but it has strict time limits.

- L-1B status is capped at five years.
- L-1A status is capped at seven years.

Once an employee reaches that limit, they must leave the United States for at least one year. Unlike the H-1B, L-1 status generally cannot be extended based on a pending or approved green card petition.

For employees approaching their L-1 maximum, being selected in the H-1B lottery can prevent a forced departure that disrupts teams, projects, and business continuity.

The H-1B Lottery Now Favors Higher-Paid Roles

Beginning this year, the H-1B lottery uses a weighted selection system. Registrations tied to higher wages have a greater chance of selection.

This change makes the lottery more attractive for senior, specialized, or highly compensated employees, including those already working in the U.S. under TN, E-2, or L-1 status.

For employers, the lottery is no longer purely random. Strategic registration can meaningfully improve the odds for key talent.

Dependent Work Authorization Matters

Work authorization for spouses is another factor that often influences retention.

H-4 dependent spouses of H-1B holders may be eligible to work in the United States. This option is not available for spouses of employees in TN, O-1, or H-1B1 status.

For many employees, especially those with families, spousal work authorization plays a major role in long-term employment decisions.

What This Means for Employers

Including employees in other statuses in the H-1B lottery is not redundant. It helps employers:

• Reduce long-term immigration risk
• Avoid unexpected work authorization gaps
• Protect green card timelines
• Improve retention of senior and high-value employees
• Minimize disruption caused by forced departures

Even when an employee does not need H-1B status immediately, securing it can provide critical flexibility later.

What Employers Can Do Now

Ahead of the H-1B registration period, employers should take a proactive approach:

• Identify employees in TN, E-2, L-1, and other non-dual-intent statuses
• Flag employees approaching status limits or key green card milestones
• Consider prioritizing higher-paid roles under the weighted lottery system
• Ensure managers understand that H-1B registration is a long-term planning tool, not just a short-term fix

A strong H-1B strategy is no longer just about hiring new talent. It is about protecting the workforce you already have.

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