“The H-1B challenges aren’t just a legal issue—they’re a catalyst for reinventing how companies think about global talent.” – Latchi Delchev, Strategic Director, Immigration at Mitratech
In an economy defined by global competition for skilled talent, U.S. employers have long relied on the H-1B visa program to fill critical technical and professional roles. The 2025 reform package and the launch of Project Firewall mark a turning point. Together, they represent the most significant shift in the H-1B landscape in more than a decade—one that blends policy modernization with expanded enforcement authority across multiple agencies.
For employers, the implications extend well beyond immigration paperwork. These aren’t just legal updates; it’s a budget and talent strategy planning issue for corporations who need to hire foreign talent. Rising petition costs, wage-tiered selection, and cross-agency investigations are redrawing the boundaries between talent strategy and regulatory exposure. HR and compliance teams now find themselves operating at the intersection of workforce planning and federal oversight, where every hiring decision carries measurable business risk.
Table of Contents
The $100,000 Headline and Tightened Oversight
On September 21, 2025, a presidential proclamation introduced some major changes to the H-1B process, including a $100,000 filing fee for new, cap-subject H-1B petitions. Who does this actually impact? On October 20, 2025, the U.S. Citizenship and Immigration Services (USCIS) clarified that the key factor is where the case is processed: inside the U.S. or abroad. The $100,000 fee primarily applies to cases filed outside the U.S. via consular processing. While existing visa holders are exempt, this unprecedented fee signals a move toward higher accountability and reduced speculative filings.
Many employers are reevaluating which roles justify sponsorship and adjusting budgets accordingly. The Department of Labor (DOL) and Department of Homeland Security (DHS) have also been directed to implement wage- and skill-based selection criteria, effectively prioritizing higher-compensated, specialized roles.
The Revised Petition Process
Beginning January 17, 2025, employers must use the revised Form I-129, reflecting a “Final Rule” designed to strengthen transparency, documentation, and the verification of a bona fide employer-employee relationship. The emphasis has shifted from procedural compliance to substantive verification—requiring detailed evidence of duties, wages, and oversight. This means more rigorous record-keeping, internal training, and cross-functional coordination between HR, legal, and finance.
“A $100,000 visa fee doesn’t just change the math. It changes the map of where and how companies hire.” – Linda Kim, Partner at Fakhoury Global Immigration
Employers are also rethinking how their internal mobility teams are structured to handle rising compliance demands. According to WR Immigration’s Q3 2025 Global Mobility Program Management benchmarking survey results, the average internal team member now supports 97 foreign national employees, up from 148 in 2024, signaling tighter resourcing even as case volume increases. Many HR teams are consolidating systems and automating tasks simply to keep pace with compliance complexity.
Project Firewall: A New Chapter in Enforcement
What is Project Firewall?
On September 17, 2025, the DOL launched Project Firewall, an initiative that expands oversight of the H-1B visa program. Anchored in the dual goals of program integrity and labor market alignment, these changes are reshaping how employers attract, compensate, and retain foreign national talent in specialty occupations.
The DOL has always had the authority to investigate and enforce H-1B regulations, but Project Firewall expands enforcement to a broader range of circumstances. It also introduces the potential for involvement from other agencies. This interagency scope means the U.S. Citizenship and Immigration Services (USCIS), Equal Employment Opportunity Commission (EEOC), and the Department of Justice (DOJ) may now participate in joint investigations—creating multiple avenues of exposure for employers whose documentation or internal protocols are incomplete.
The risks of non-compliance are quite high; per the news release, “violations may result in the collection of back wages owed to affected workers, the assessment of civil money penalties, and/or debarment from future use of the H-1B program for a prescribed period of time.”
What Employers Should Do Immediately
“This moment calls for partnership—HR, legal, and immigration experts aligning to build resilience, not just react.” – Latchi Delchev, Strategic Director, Immigration at Mitratech
For employers, this is more than an administrative shift; it reinforces why compliance readiness must move from being a “best practice” to a day-to-day operational priority. There are still some open questions, especially around international travel, visa stamping, and possible exemptions, organizations should act now to strengthen audit readiness and close procedural gaps before an inquiry occurs.
Recommended Actions
This operational readiness should become part of your organization’s broader risk and compliance framework, not an isolated HR exercise. To strengthen resilience and readiness under the new H-1B landscape, employers should:
- Review and update internal protocols for handling government investigations, designating a compliance lead for immigration matters.
- Train internal stakeholders on proper documentation, recordkeeping, and the full scope of H-1B obligations.
- Align earlier with HR, finance, and TA to forecast workforce needs and funding for sponsorship. Teams that use ROI-driven forecasting and cost-of-inaction modeling (factoring in delayed hires and lost talent) are better positioned to defend spend and demonstrate compliance value to leadership.
- Conduct internal audits of Public Access Files (PAFs) tied to each Labor Condition Application (LCA), ensuring wage and notice provisions are fully met.
- Verify that all LCA postings comply with federal posting requirements and that documentation is readily available for review.
- Engage counsel where needed to evaluate internal compliance programs and perform independent audits for added assurance.
Strengthening cross-functional collaboration is also becoming a best practice. The same WR Immigration survey I cited above found that 79% of organizations still haven’t integrated their HRIS with immigration case management tools, though many are actively working toward it. Without that integration, even simple data updates such as location changes or role modifications can create compliance blind spots that Project Firewall investigators could easily flag.
Teams that consolidate their platforms are making progress: 38% now use a single HRIS or case management system, up from 31% the prior year, reflecting an industry-wide push for unified data sources.
Tune into From H-IB Uncertainty to Global Opportunity, a discussion with immigration and global experts, and get practical guidance to build a stronger, borderless workforce.
What you’ll learn:
– Changes to the H-1B Program
– Alternative U.S. visa pathways for key roles
– Strategies to build a more flexible, resilient global talent strategy
Where You Can Turn for Help
Whether you’re managing 10 visa holders or 1,000, the future of compliance isn’t just about meeting requirements, it’s about earning confidence, from leadership, from regulators, and from the talent you bring across borders. The administrative burden has increased, but so has the opportunity for well-prepared organizations to differentiate themselves through transparency and discipline. By leveraging trusted technology, you can reduce risk, streamline workflows, and demonstrate a culture of compliance.
Mitratech helps organizations turn complexity into clarity. Our connected HR and compliance solutions, including INSZoom, Tracker I-9 Compliance, and ARIES™, give teams the visibility, documentation, and automation they need to stay ahead of every regulation, across every region.
With more than two decades of experience in the immigration technology market, Mitratech’s experts are available to help you assess readiness, configure systems for documentation and workflow consistency, and provide referrals to qualified immigration counsel when direct legal guidance is required.
Compliance doesn’t have to be reactive. With the right systems in place, it becomes a strategic advantage. Ready to see how Mitratech can help you stay compliant, connected, and confident? Connect with our team now to access the guidance and solutions you need.
Disclaimer
This article is for informational purposes only and doesn’t constitute legal advice. Organizations should consult with qualified immigration counsel regarding their specific obligations under the H-1B program.
H1B Visa FAQs
What are the major recent changes to the H-1B program that employers need to know now?
Recent reforms include the introduction of a one-time $100,000 fee for new H-1B petitions filed after September 21, 2025. The fee is effective and USCIS has provided payment instructions. It applies only to new H-1B petitions filed for beneficiaries outside the U.S. who don’t already hold a valid H-1B visa. It doesn’t apply to “change of status” petitions for those already in the U.S. (like F-1 students on OPT). It also doesn’t apply to H-1B extensions or amendments for current visa holders.
Does the $100,000 fee apply to all H-1B petitions, including extensions and renewals?
No—according to official guidance, the fee applies only to new H-1B petitions filed after 12:01 a.m. ET on September 21, 2025. Extensions or renewals of existing H-1B status aren’t subject to the fee under current guidance.
Are there any possibilities for an exemption from the fee?
The fee is currently being challenged in court by a coalition of labor unions, health care providers, schools, and religious organizations as well as the U.S. Chamber of Commerce.
If an H-1B holder is already in the U.S., how are they affected by these changes?
Existing H-1B visa holders and petitions approved prior to the effective date are generally not subject to the new fee. However, employers should verify status, travel arrangements, and whether any change in employment circumstances triggers new compliance obligations.
What alternative visa pathways should employers consider if the H-1B route becomes less viable?
Employers may explore alternative U.S. visa classifications such as:
- L‑1 visa (for intracompany transfers)
- O‑1 visa (for individuals with extraordinary ability)
- TN visa (for eligible Canadian and Mexican nationals under NAFTA/USMCA)
Alongside these, broader strategies include remote/hybrid talent deployment, regional hubs, and global mobility models. These alternatives help build flexibility in a changing regulatory environment.
The O-1 “extraordinary ability” visa sounds intimidating. What does “extraordinary” actually mean in a business or tech context? What kind of candidates is this usually recommended for? Tune into From H-IB Uncertainty to Global Opportunity, a discussion with immigration and global experts, for practical guidance to build a stronger, borderless workforce.
How should organizations adjust their global talent strategy in light of these reforms?
In general, organizations should:
- Re-evaluate sponsorship budgets and the business case for each sponsored role;
- Ensure job descriptions and compensation align with anticipated higher prevailing-wage requirements;
- Strengthen documentation and audit readiness (particularly for roles that may attract increased scrutiny);
- Expand talent sourcing frameworks beyond the U.S. (e.g., global hubs, remote arrangements) so that talent shortages aren’t reliant on a single visa channel; and
- Align immigration and mobility strategy with enterprise risk and compliance frameworks, not just HR operational plans.
Does H 1B visa still permit remote hiring?
Remote work is still permissible, but heavily scrutinized. U.S. immigration law has long allowed H-1B employees to work from home or alternate locations, as long as the Labor Condition Application (LCA) accurately reflects each worksite and the prevailing wage for that location.
Under Project Firewall, however, the Department of Labor (DOL) has expanded its authority to initiate investigations proactively, without an external complaint. That means:
- Employers must be able to prove that remote worksites were properly covered by the LCA at the time employment began; and
- Even small discrepancies—like an H-1B employee working in a new city or state for a short period—can expose an employer to findings of non-compliance if not properly documented.
In other words, what was once a procedural formality is now a potential enforcement trigger.
What compliance risks are heightened by recent enforcement initiatives like Project Firewall?
Project Firewall (launched September 17, 2025 by the U.S. Department of Labor) expands federal oversight of the H-1B program and authorizes investigations even in the absence of external complaints.
Employers may face audits or investigations from multiple agencies including the U.S. Citizenship and Immigration Services (USCIS), Equal Employment Opportunity Commission (EEOC), or the U.S. Department of Justice (DOJ). Compliance gaps in wage-levels, public access file postings, or employer-employee relationship oversight may trigger back-wage liability, civil penalties, or debarment from the H-1B program.
