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Which Employers Are Exempt from the H-1B Cap?

Published in H-1B Cap Exemption 3 mins read

Certain employers are exempt from the annual H-1B cap, allowing them to petition for H-1B visas at any time during the year without being subject to the lottery system. This exemption is crucial for organizations that frequently require specialized foreign talent.

Understanding H-1B Cap Exemptions

The H-1B visa program, designed for specialized occupations, generally has an annual numerical limit, known as the H-1B cap. Each fiscal year, a limited number of new H-1B visas are made available. Employers must typically participate in a lottery if the number of petitions exceeds the cap. However, specific types of organizations are not subject to this cap, enabling them to file H-1B petitions regardless of the annual limit or the time of year.

Who Qualifies as an H-1B Cap-Exempt Employer?

The exemption from the H-1B cap is granted to organizations that serve specific public purposes, primarily in the fields of education and research. These employers can sponsor H-1B visas for eligible foreign professionals outside of the regular cap lottery.

Here is a summary of the types of entities typically exempt from the H-1B cap:

Employer Category Description
Institutions of Higher Education Colleges, universities, and other post-secondary educational institutions.
Non-profit Entities Affiliated with Higher Ed Non-profit organizations directly related to or affiliated with an institution of higher education.
Non-profit Research Organizations Non-profit entities whose primary purpose is to conduct research.
Government Research Organizations Federal, state, or local government entities primarily engaged in research.
For-profit Companies (Under Specific Conditions) For-profit entities, if the H-1B employee will primarily perform duties at a qualifying non-profit or higher education institution.

Detailed Categories of Cap-Exempt Employers:

  • Institutions of Higher Education: This includes recognized public and private colleges and universities that provide post-secondary education. Examples include state universities, private universities, and community colleges.
  • Non-profit Entities Related or Affiliated with Institutions of Higher Education: Non-profit organizations that are formally connected to a university or college can also be cap-exempt. This affiliation often involves shared ownership, control, or a formal operational agreement that links the non-profit to the educational institution's mission.
  • Nonprofit or Government Research Organizations: This category encompasses non-profit organizations and governmental entities whose fundamental purpose or primary function is to conduct research. This can include scientific research institutions, medical research centers, or government laboratories.
  • For-profit Companies (Specific Work Location Requirement): Even a for-profit company may be exempt from the H-1B cap if the H-1B employee will be primarily performing their duties at a qualifying non-profit organization, a governmental research organization, or an institution of higher education. This means the employee's work must directly support the exempt entity's mission.