Now Reading: US expands H-1B, L-1 extension fees for big employers
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US expands H-1B, L-1 extension fees for big employers
The US government has expanded a pre-existing fee for H-1B and L-1 extensions to cover large employers, effective September 9. Under rules published on August 10, companies with 50 or more US…
The Story in Brief
The US government has expanded a pre-existing fee for H-1B and L-1 extensions to cover large employers, effective September 9. Under rules published on August 10, companies with 50 or more US employees and a workforce over 50% on H-1B or L-1 visas must pay $4,000 for each H-1B extension and $4,500 for each L-1 extension. The employer is liable for the fee, which previously applied only to initial petitions and job changes. The US expects to raise $157.3 million annually for a biometric entry-exit system.
Indian IT services and consulting firms, heavy users of these visas, will face higher costs for renewing thousands of workers. While the fee is not passed directly to employees, it could influence hiring and retention decisions. Some filings, such as amended petitions not requesting an extension, are exempt from the fee.
The Indian Opinion
Some reports frame this fee expansion as a blow to Indian tech workers. But the levy targets large, visa-dependent employers, not individual visa holders. Indian IT firms may absorb the cost or pass it on through slower renewals. The real test will be whether clients accept higher billing rates or firms accelerate local hiring in the US. Watch the next quarterly earnings calls for how companies address this cost.
Source: livemint.com
This story was synthesised by AI from the source linked above.
