H-1B visa holders are switching jobs more than ever; here is the entire process explained

From fiscal year 2005 to 2023, H‑1B workers changed jobs over 1 million times (1,090,890). The number of switches grew from about 24,000 in 2005 to a record 130,576 in 2022—a more than fivefold increase. In fiscal year 2023, H‑1B workers changed jobs 117,153 times, a slight decline from 2022.

Bier’s authored report says that on another front, H‑1B job shifting is more common than H‑1B workers starting H‑1B employment for the first time.

“In 2023, about 61 per cent of all H‑1B workers starting with a new employer were existing H‑1B workers hired away from other employers in the US. This means that American employers are more likely to hire an H‑1B worker already in the country in H‑1B status.”

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Reasons for the trend:

The labor market has generally been tighter, leading to more job switching in general. In addition, more H‑1B workers are employed in the US now for other employers to poach, and because the H‑1B cap has been so quickly met every year since 2014, there is more reason to poach. The government also made it somewhat easier to switch H‑1B jobs in 2017 by giving them a sixty‐day grace period to find a new job after losing a job.Finally, the jump in switching in 2021 is at least partially attributable to the record number of green card applications filed that year. After 180 days, H‑1B workers who have filed a green card application may change jobs without the employer being forced to restart the green card process, easing the job‐switching process.However, in 2022, the number of pending employment‐based green card applications declined from 2021, so this is only part of the story.What are the challenges?

The report points out that “Of course, it is true that H‑1B workers are still not treated equally in the labor market. New H‑1B employers have to pay hefty fees to poach them, and the shortage of green cards for Indian workers can wrongly make those workers feel that they have to stick with their existing employer to complete that process. The best solution would be to make the conversion to a green card automatic rather than requiring a renewal after three years.”

It adds “The sixty‐day grace period to find a new job is still not long enough to give many workers the confidence to simply quit a problematic job without a new one already lined up.”

What is the process for a job transfer for an H-1B holder?

• The new employer must prepare and submit the Labor Condition Application (LCA) to the Department of Labor (DOL).
• The process of obtaining LCA certification typically takes around 7 days.
• After the LCA is certified, the new employer can proceed to file the H-1B petition.
• The H-1B petition requests H-1B classification for the new position and an extension of status.
• Upon proper filing of the H-1B petition, the H-1B worker can transition to the new employer.
• This transition can occur even before the H-1B petition requesting an extension of status is approved.
• However, many employers prefer to wait for the new H-1B petition to be approved before onboarding the H-1B worker.

Fee payable by the new employer

For employers with 26 or more full-time employees, the cost for Form I-129 is $780, up from the previous $460 before April 1. Additionally, they must pay a $500 fraud fee and a $1500 training fee. Effective April 1, employers are also required to pay a $600 asylum processing fee. The premium processing fee stands at $2805.

If an employer has 50 or more employees with over 50% of them in H-1B or L status, they must pay an extra $4000 in fees.

For employers with 25 or fewer employees, the I-129 fee remains at $460. They must also pay a $500 fraud fee and a $750 training fee. Additionally, a $300 asylum processing fee is required. The premium processing fee remains at $2805.

Different fee structures apply to H-1B nonprofit cap exempt employers.