Preparing for the FY2024 H-1B Cap Season | Practical Law

Preparing for the FY2024 H-1B Cap Season | Practical Law

The FY2024 H-1B cap season is fast approaching. Employers and their counsel should begin preparing for cap season under US Citizenship and Immigration Services' (USCIS) registration process. The registration period for petitioners seeking to file H-1B cap cases in the FY2024 cap season runs from March 1 through March 20, 2023. USCIS announced on March 27, 2023 that enough registrations were received and drawn to satisfy both the regular and master's caps.

Preparing for the FY2024 H-1B Cap Season

Practical Law Article w-038-3865 (Approx. 5 pages)

Preparing for the FY2024 H-1B Cap Season

by Practical Law Labor & Employment
Law stated as of 27 Mar 2023USA (National/Federal)
The FY2024 H-1B cap season is fast approaching. Employers and their counsel should begin preparing for cap season under US Citizenship and Immigration Services' (USCIS) registration process. The registration period for petitioners seeking to file H-1B cap cases in the FY2024 cap season runs from March 1 through March 20, 2023. USCIS announced on March 27, 2023 that enough registrations were received and drawn to satisfy both the regular and master's caps.
On January 27, 2023, US Citizenship and Immigration Services (USCIS) announced that the registration period for FY2024 H-1B cap cases runs from 12:00 noon EST on March 1, 2023 through 12:00 noon EDT on March 17, 2023. On March 17th, USCIS announced that the registration period is extended to 5 pm EDT on March 20, 2023 because of technical issues experienced in the myUSCIS site on March 16th (see USCIS: H-1B Electronic Registration Process). The registration process for petitioners seeking to file H-1B cap cases was introduced during in the FY2021 cap season. Employers should gather information about employees or applicants whom they will or might sponsor for a cap-subject H-1B now, so they are prepared when the registration period opens.
UPDATE: On March 27, 2023, USCIS announced that it had completed the registration selection process and that it had received sufficient registrations to satisfy both the regular and the master's caps. Petitioners with valid registration selected for one of the caps may file the related H-1B petition with USCIS beginning on April 1, 2023. USCIS warns that petitioners may experience delays in obtaining receipt notices for submitted petitions and suspended the use of prepaid mailers for returning the receipt notices.

The H-1B Cap

H-1B visas are popular with employers because of their broad applicability, but USCIS approves no more than 85,000 new H-1Bs for each fiscal year (October 1st to September 30th). The new H-1B visas are allocated as follows:
  • 65,000 for any qualifying H-1B worker, including up to 6,800 for citizens of Singapore or Chile, who are granted H-1B1 nonimmigrant status based on free-trade agreements with those countries (the regular cap).
  • 20,000 for workers who have earned a master's degree or higher from a US academic institution (the advanced degree exemption or master's cap).
The limited availability of H-1B visas is known as the H-1B cap. For more information on the H-1B cap and its impact on employers, see Practice Note, The H-1B Nonimmigrant Visa Classification: The H-1B Cap.
Employers may generally begin requesting new H-1B visas on April 1st, six months before the fiscal year starts on October 1st, and may continue to file cap-subject H-1B petitions until the annual cap is reached. In most years, the H-1B cap is met by April 7th, in the first week that USCIS accepted new H-1B petitions (see, for example, Legal Updates, USCIS Announces FY2021 H-1B Caps Reached Following Registration Selection, USCIS Reaches the Regular H-1B Cap for FY2020, and USCIS Announces FY2020 H-1B Master's Cap Exhausted; Random Selection Process Completed).
H-1B cap case usage was lower for FY2022 and FY2023 given the economic impact and travel impediments imposed by COVID-19, but was exhausted in the final selection process on November 19, 2021 and August 23, 2022, respectively (see Legal Update, USCIS Announces FY2022 H-1B Cap Selection Process Is Completed and 2022 US Immigration Developments Tracker: DHS: US Citizenship and Immigration Services (USCIS); for more information on COVID-19-related complications, see Practice Note, Expert Q&A: COVID-19 and Immigration).

Registration Requirement

Employers seeking to file H-1B cap-subject petitions must complete an electronic registration. The electronic registration period starts at least 14 days before April 1st, the date on which the H-1B petition filing period generally begins, and remains open for at least 14 days. USCIS announces the initial registration period on its website at least 30 calendar days before the period begins.
On January 27, 2023, USCIS announced that the registration period for FY2024 H-1B cap cases runs from 12:00 noon EST on March 1, 2023 through 12:00 noon EDT on March 17, 2023. On March 17th, USCIS announced that the registration period is extended to 5 pm EDT on March 20, 2023 because of technical issues experienced in the myUSCIS site on March 16th (see USCIS: H-1B Electronic Registration Process). If more than enough registrations are received to satisfy the cap, USCIS will run the random selection after the registration period closes and before March 31, 2023. Only those with selected registrations may file a cap-subject H-1B petition. See H-1B Cap Selection Process.
Registrants will be able to create new accounts beginning at noon EST on February 21, 2023. Existing representatives may add new clients to their accounts at any time.
USCIS must also announce:
  • The final registration date in any fiscal year.
  • Any subsequent reopening or reclosing of the registration period.
Petitioning employers:
  • May submit only one registration for the same beneficiary during a fiscal year.
  • Must attest to their intent to file an H-1B petition for the beneficiary in the job for which the registration is filed.
  • Must pay a registration fee of $10 for each registration.

H-1B Cap Selection Process

If USCIS receives more registrations than there are available H-1B visas:
  • It first selects the number of registrations estimated to meet the regular H-1B cap from the entire pool of registrations.
  • It then counts registrations for petitions that are eligible for the advanced degree exemption but were not selected under the regular cap toward the projected number needed to reach the advanced degree exemption allocation.
If selected, a petitioner will have a filing period of at least 90 days to prepare and file the petition. USCIS will specify the dates during which the petitions may be filed.
Before filing the H-1B petition, employers must obtain a certified Labor Condition Application (LCA) from the DOL's Foreign Labor Application Gateway (FLAG) System. For more information on LCA requirements, see Practice Note, The H-1B Nonimmigrant Visa Classification: Labor Condition Application.
For more information on preparing and submitting an H-1B petition, see Practice Note, The H-1B Nonimmigrant Visa Classification: Filing an H-1B Petition with USCIS.
If approved, the H-1B visa approval allows the foreign worker to be employed by the petitioning employer in the job described in the H-1B petition no earlier than October 1, 2023 (as requested in the petition) for up to three years, with the possibility for further extensions or amendments to the H-1B status (see Practice Note, The H-1B Nonimmigrant Visa Classification: Validity Period of H-1B Approval).
For a collection of resources to help employers develop strategies for preparing and filing H-1B petitions for their foreign workers. For more information and links to these resources, see The H-1B Visa Classification Toolkit.
Employers that are unable to file an H-1B petition, or are unsuccessful in obtaining H-1B status for their foreign workers, may find alternative nonimmigrant visa status options in Employer Options When H-1B Visas Are Not Available Checklist.
For information on preparing and filing H-1B petitions, please see Practice Note, The H-1B Nonimmigrant Visa Classification.