In September 2025, an executive order proposed requiring employers to pay a $100,000 fee per H1B worker for petitions filed by companies that employ more than 50% H1B workers. The rule targets high-volume H1B-dependent employers, primarily Indian IT outsourcing companies.
What Is the H1B $100,000 Fee?
In September 2025, an executive order proposed requiring employers to pay a $100,000 fee per H1B worker for petitions filed by companies that employ more than 50% H1B workers. The rule targets high-volume H1B-dependent employers, primarily Indian IT outsourcing companies.
Who Is Subject to the Fee?
H1B Dependent Employers
Companies where more than 15% of US employees are H1B workers. Primarily affected:
- Infosys, TCS, Wipro, HCL, Cognizant (outsourcing firms)
- Smaller IT staffing companies with heavy H1B usage
Who Is Exempt?
- Product companies (Google, Microsoft, Amazon, Meta) — typically not H1B-dependent
- Universities and research institutions — explicitly exempt
- Non-profit organizations — exempt
- Employers with <50 H1B workers — generally not H1B-dependent
Will Your Employer Pass the Cost to You?
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This is the #1 anxiety for H1B workers at affected firms. Legally, employers cannot deduct H1B fees from your salary below the prevailing wage. However:
- Companies may freeze salary increases
- Fewer H1B sponsorships means less competition for jobs (counterintuitively good for existing holders)
- Consulting firms may reduce bench time and push billability harder
If You Work at an Affected Company: Financial Actions
- Diversify income — max 401k, build brokerage savings outside employer control
- Emergency fund target: 9 months (not the standard 6) given higher layoff risk at affected firms
- Explore H1B transfer to a product company if possible — removes the fee risk entirely
- Track your LCA wage — any salary reduction below LCA prevailing wage is illegal
If You Work at a Non-Affected Company
You are largely insulated. The $100K fee does not apply to your employer. Continue your normal financial plan.
Legal Status as of April 2026
The $100,000 fee executive order is currently being challenged in federal court. Implementation is stayed pending litigation. Monitor:
- American Immigration Lawyers Association (AILA) updates
- Your employer's HR communications
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