Webinar Recap: H-1B Visa Fees Hiked to $100k – How Employers Can Respond

1 October 2025 | By Alex Schulte

The second Trump administration revels in delivering sharp shocks to the system. On Friday 19 September, Commerce Secretary Howard Lutnick announced that the H-1B visa, the single most important immigration pathway for the US tech industry, would come with an annual price tag of $100,000 per application, starting on Sunday 21 September.

Chaos and confusion ensued, spilling over from Silicon Valley into other sectors dependent on skilled foreign labour. Thousands of visa holders abroad raced for flights back to the US to dodge the cut-off date, while employers clamoured for answers.

In an abrupt about-turn, on Saturday 20 September, the administration clarified that the fee would only be levied as a one-off and would not apply to renewals. But questions still swirled.

On 25 September, we hosted a webinar to clear up the ambiguity. Seasoned US immigration attorney Lucy Magardichian joined our co-founder, Asma Bashir, to answer some urgent questions we’d received from clients in the days following the proclamation.

If you missed out, you can watch the session back in its entirety below.

But if you just want the basics, here’s what we covered.

What we know about the H-1B visa changes

Lucy and Asma started the session by clearing up some outstanding questions about the mechanics of the fee hike.

Who is affected by the new H-1B visa fee?

Contrary to the initial announcement, the new fee will only impact new H1-B petitions filed after 21 September 2025. It will not apply to renewals.

However, it remains unclear whether this will apply to transfers or changes of status.

Is the new fee a one-time charge?

It is unclear whether the fee will be levied once per application or will be a one-time fee that then permits companies to submit multiple H1-B petitions.

Project Firewall and new immigration enforcement measures

Alongside the visa fee announcement, the administration announced the launch of Project Firewall, a crackdown on perceived ‘abuse’ of the H-1B program.

What are the new Project Firewall enforcement measures?

The US Department of Labor will serve as another layer above the existing USCIS oversight, stepping up investigations into employers’ compliance with domestic employment laws.

Employers found in violation of H-1B rules may face:

• Payment of back wages to affected workers.
• Civil money penalties.
• Debarment from using the H-1B and other immigration programs for a specific period.

What are the new areas of focus for Project Firewall?

• Wages: Are salaries actually paid as promised (LCA/offer letter)?
• Worksites: Do employees only work at LCA-listed locations (including client sites)?
• Layoffs: Were there recent U.S. worker layoffs before hiring H-1Bs?
• Parity: Are benefits the same for H-1B and similarly situated U.S. workers?
• Records: Are payroll, W-2s, timesheets, and other docs maintained and consistent?
• Public Access File (PAF): Is the PAF complete and available?

“Some companies file H-1Bs and they bench their employees, they don’t pay them or they place them in roles they’re not supposed to, the wages are not being paid, and they get complaints. The Department of Labor gets complaints, so they’re going to go after [these] companies.” – Lucy Magardichian

What counts as a violation?

• Benching (not paying when work is unavailable).
• Underpayment vs. required wage.
• Unlisted worksites (including remote/client locations not covered by an LCA).
• Mismatched benefits for H-1B vs. U.S. workers.
• Missing/deficient PAF or payroll records.

What immediate steps should employers take?

• Map every H-1B worksite to an LCA; fix gaps.
• Reconcile pay vs. LCA/offer—document any adjustments.
• Refresh the PAFs—complete, consistent, accessible.
• Train managers on no-benching and location changes.
• Create an audit binder (org chart, job duties, timesheets, W-2s, payroll, benefits policy).

“Everyone should check and audit where their workers are, because that’s going to be the biggest issue.” – Lucy Magardichian

How should employers handle filings in the short term (extensions vs. new applications)?

Employers should treat extensions/changes of status in the U.S. differently from brand-new petitions, while also monitoring for clarifications.

“I filed the case yesterday, which is an extension of stay with USCIS and only the standard fees were paid. So if it’s an extension of stay, it shouldn’t be a new application.” – Lucy Magardichian

How employers’ strategies may change 

Beyond immediate compliance, many employers are anxious to shift their broader workforce strategies to avoid these elevated costs altogether.

As Lucy and Asma made clear, companies should treat this volatile moment as a commercial opportunity. While the initial adjustment may feel uncomfortable, the opportunity to diversify your operations will reduce your long-term risk exposure.

How should employers rethink their global talent footprints?

This is the time for a strategic reset. Step back, map critical roles, and design multiple pathways (US-based, nearshore and offshore) so that projects don’t hinge on one visa route.

“When these things happen, it brings more energy to you. You get more ideas. You become more creative. You offer more solutions.” – Asma Bashir

Are companies really considering nearshoring as an alternative?

Yes. Given the rapid rise in H-1B costs and uncertainty around compliance, some employers are considering staging talent in nearby countries as a practical workaround.

“So alternatives that are being considered are: can I be in Canada? Can I be in Mexico? There is an abundance of opportunities there; so many different applications people can consider” – Asma Bashir

How long can nearshoring realistically work as a solution?

It can keep projects moving for one to two years, especially for temporary or client-driven assignments, but it doesn’t replace a long-term US immigration plan.

“Quite often people need to be there for a year or two years, right, to deliver on these projects.”

What alternative visa options should employers consider?

A: While the H-1B remains central, employers should prepare contingency routes. Options raised in the webinar included STEM green cards for eligible workers, L-1 intra-company transfers for multinationals, and O-1 visas for individuals with exceptional ability. These don’t eliminate the need for H-1Bs but provide flexibility in a volatile policy environment.

“Green cards can be started if somebody is on a STEM. It’s case by case, but it’s something that people should take more as a wake up call to examine [their] whole immigration policy and how they want to go about sponsoring employers, and who falls in what category.” – Lucy Magardichian

Is the US likely to lose out on talent to other countries?

There is a real risk that talent may shift if the US becomes too costly or unpredictable. The US has a strong pull that won’t be instantly eroded. But more countries, from the UK to China, are now jostling for talent that would otherwise have gone to America.

“There are many countries in the world that will offer alternatives. The UK is holding its hand out.” – Asma Bashir

What employers should keep watching

Uncertainty was a running theme in the conversation. The White House’s first proclamation dropped out of the blue on Friday with little detail, and the follow-up clarification still left many questions.

Lucy and Asma discussed several aspects of the current situation that remain unclear and ambiguous.

Will any groups or sectors be exempt from the new charge?

Possibly. Some reports suggested doctors and healthcare workers might be excluded, but there has been no firm confirmation.

“Some news outlets were mentioning that doctors could be exempt. I hope they are, because we have a tremendous shortage of doctors.” – Lucy Magardichian

Is litigation expected, and could it change the timeline?

Both Asma and Lucy brought up the prospect of litigation to challenge these measures.

Companies should start coordinating with legal counsel now. Identify mission-critical roles, model costs/risks under multiple scenarios (status quo, delayed fee, enjoined fee), and prepare a go/no-go checkpoint before submitting any new cases.

Employers should view the next few weeks as a signal-gathering window and be prepared to adjust their filing plans if a court action halts enforcement.

“We’re part of a group of lawyers and we’re looking for people who are eagerly interested in becoming a plaintiff to the litigation.” – Asma Bashir

Short of joining litigation, what can businesses do to protect their interests?

Patience and vigilance are the current watchwords. With so much still unclear, companies must monitor the situation closely and seek actionable advice from immigration and HR experts.

“At the end of the day, the practical advice is to wait and see. Don’t panic. There’s always a solution and I wholeheartedly echo that companies need to sit down now with immigration counsel, with HR managers – everybody needs to come together and strategise the plan going forward” – Lucy Magardichian

Looking forward

The administration’s assault on the H-1B visa system has thrown employers into uncharted territory.

But what shone through most clearly in our webinar is that employers must be ready to pivot. Right now, the worst thing employers can do is waste time panicking instead of preparing.

Employers who audit their workforce, tighten compliance, diversify visa strategies and build contingency plans have little to fear from this period of uncertainty.

Don’t risk being the proverbial deer in the headlights: stay agile, stay alert.

👉 Watch the full session now

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