Preparing for the FY2022 H-1B Cap Season | Practical Law

Preparing for the FY2022 H-1B Cap Season | Practical Law

The FY2022 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, which is in its second year. The registration period for petitioners seeking to file H-1B cap cases in the FY2022 cap season runs from March 9 through March 25, 2021.

Preparing for the FY2022 H-1B Cap Season

Practical Law Legal Update w-029-6852 (Approx. 6 pages)

Preparing for the FY2022 H-1B Cap Season

by Practical Law Labor & Employment
Published on 16 Feb 2021USA (National/Federal)
The FY2022 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, which is in its second year. The registration period for petitioners seeking to file H-1B cap cases in the FY2022 cap season runs from March 9 through March 25, 2021.
On February 5, 2021, US Citizenship and Immigration Services (USCIS) announced that the registration period for FY2022 H-1B cap cases runs from noon EST on March 9, 2021 through noon EDT on March 25, 2021. As a reminder, the registration process for petitioners seeking to file H-1B cap cases was introduced during in the FY2021 cap season. To prepare for the registration period, employers should gather information about employees or applicants for whom they will or might sponsor for a cap-subject H-1B so they are prepared when the registration period opens.

The H-1B Cap

H-1B visas are popular with employers because of their broad applicability, but the limited availability of new H-1B petitions each year creates pressure on employers seeking to employ foreign workers.
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 the past seven years, however, the H-1B cap has been 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 and 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 may be much lower for FY2022 given the economic impact and travel impediments imposed by COVID-19 (for more information, see H-1B-Related Developments).
On January 31, 2019, USCIS issued a Final Rule amending several of its regulations governing the filing and selection processes for cap-subject H-1B petitions (84 Fed. Reg. 888 (Jan. 31, 2019)).
The Final Rule:
  • Creates an H-1B registration program for employers seeking to file H-1B cap-subject petitions. The goal of the program is to alleviate the burden on USCIS offices and employers and their counsel in preparing and filing H-1B petitions with less than a 50% chance of selection. The registration was first implemented in the FY2021 cap season. See New Registration Requirement.
  • Alters the selection process if the DHS receives more H-1B registrations than there are available H-1B visas. The 2019 process maximizes the likelihood that petitions for H-1B workers with a US master's or higher degree are selected under the regular cap as well as the advanced degree exemption (commonly called the master's cap). The new selection system took effect on April 1, 2019. See H-1B Cap Selection Process.

Registration Requirement

The 2019 Final Rule introduced a registration program for employers seeking to file H-1B cap-subject petitions. The rule requires that the electronic registration process start at least 14 days before April 1st, the date on which H-1B petitions generally can be filed for the new fiscal year (which begins October 1st), and last at least 14 days.
USCIS announces the initial registration period on its website at least 30 calendar days before the period begins. On February 5, 2021, USCIS announced that the registration period for FY2022 H-1B cap cases runs from noon EST on March 9, 2021 through noon EDT on March 25, 2021. If enough registrations are received to satisfy the cap, USCIS will run the random selection after the registration period closes and before March 31, 2021. Only those with selected registrations may file a cap-subject H-1B petition. See H-1B Cap Selection Process.
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, the 2019 Final Rule changed the order in which registrations are counted towards the projected number needed to reach the H-1B allocations. Historically, USCIS counted petitions filed for beneficiaries with a master's degree or higher under the H-1B advanced degree exemption first until the projected number of petitions needed to meet the advanced degree exemption allocation (20,000) was reached, before beginning to select petitions filed for the regular cap (65,000). Under the Final Rule:
  • USCIS first selects the number of registrations estimated to meet the regular H-1B cap from the entire pool of registrations.
  • Once the regular cap projected number is reached, USCIS 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.
A new rule issued in January 2021 further altering the selection process to sort petitions based on wages was delayed by the Biden Administration and is not effective for the FY2022 cap season (see H-1B-Related Developments.)
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, 2021 (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).

H-1B-Related Developments

Developments throughout the past year affecting H-1B petitions, employers, and foreign workers include:
Practical Law has 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 Practical Law's 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.