H-1B visa alternatives: L-1 route gains attention amid rising costs

With H-1B costs surging and uncertainty rising, companies are reassessing L-1 transfers as the March registration window opens

The H-1B cap pre-registration window opens on March 4 and runs till March 19, a timeline confirmed by the US Citizenship and Immigration Services (USCIS). This year’s process comes with a sharp cost that is forcing companies to look beyond the H-1B route, including at alternatives such as the L-1 intra-company transfer visa.

 

For the first time, employers will have to pay $100,000 for each H-1B applicant who is outside the United States at the time of selection and petition filing. The fee, introduced by the Donald Trump administration, was challenged in court, but there has been no ruling or stay. As a result, companies entering this year’s lottery must factor in the full cost.

   

In the latest podcast of Murthy Law Firm, attorney Anna Stepanova said the new fee structure means firms can no longer rely only on the H-1B programme. “Companies now have to broaden their search. They cannot depend solely on H-1B,” she said, adding that visa pathways such as the L-1 could gain traction despite their own conditions.

 

What is the L-1 visa?

 

The L-1 is a non-immigrant visa used by multinational companies to transfer senior employees from overseas offices to the United States.

 

There are two main categories.

 

• L-1A visas are for managers and executives working in multinational roles

• L-1B visas are for employees with specialised knowledge related to the company’s operations

 

A key requirement is the corporate relationship. The overseas employer must be linked to the US entity, such as a parent company, subsidiary or affiliate. USCIS also requires documentary proof of this relationship.

 

Why companies are looking at L-1 now

 

Stepanova said the L-1 programme offers a possible entry point at a time when the H-1B route has become expensive and uncertain. “The L-1 visa can be an excellent option in the present situation, but it is not a universal solution,” she said.

 

She added that using the L-1 route requires advance planning. Companies need the right overseas structure and compliance framework in place, something not all employers may have this year. “It requires infrastructure, and some companies may not be ready immediately,” she said.

 

Over the longer term, she said, the L-1 could help firms avoid the $100,000 H-1B fee for overseas hires.

 

How L-1 differs from H-1B

 

Unlike the H-1B, the L-1 visa does not involve a lottery and has no annual numerical cap. Employees entering the US on an L-1 can later switch to an H-1B if selected, and may also apply for a green card if eligibility conditions are met.

 

This flexibility is one reason immigration advisers expect more interest in the programme as companies reassess hiring strategies.

 

H-1B visa has lost relevance

 

On Sunday, India’s Commerce Minister Piyush Goyal said the H-1B visa had lost much of its relevance after the Covid-19 pandemic.

 

“Global businesses no longer depend on moving large numbers of Indian engineers to the United States,” he said.

 

He also described how the visa process had become unpredictable. “The H-1B visa story had gradually deteriorated into a lottery. So if I needed two H-1B visas, I would calculate that one out of seven are going to get it. I would apply for 15 and hope to get two out of those,” he said, explaining how firms adapted to the uncertainty after Covid.

 

As the March registration window opens under a higher-cost regime, immigration lawyers say such concerns are likely to push companies to reassess how, and from where, they hire talent for the US market.