Cap Exempt H-1B Explained

16 min. read
Published: Jan 14, 2025
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Last Updated: January 14, 2025
  • The information provided on this blog is for general informational purposes only and should not be construed as legal advice or a substitute for consultation with a licensed attorney. For personalized guidance, please consult with our attorneys.

H-1B Visa has a cap of 65,000 annually, plus 20,000 for those who studied in the USA. However, there is a way to pass this cap, that’s called cap exemption. Some employers, such as universities, and nonprofit organizations connected to these institutions, have the advantage of employing foreign professionals without minding the 85,000 gap. 

Unlike the regular H-1B process, which requires candidates to go through a lottery and stick to strict deadlines, cap-exempt applications can be submitted anytime during the year. This flexibility makes it especially useful for employers and workers in fields like education, research, and healthcare, making it easier to hire talented professionals from around the world. 

What is Cap-Exempt H-1B?

Cap-exemption is a special condition for the H-1B visa and lets certain employers and professionals avoid the lottery. Eligible employers include universities, nonprofit organizations tied to these institutions, and nonprofit or government research organizations. Unlike regular H-1B applications, which face a lottery system and a yearly limit, cap-exempt petitions can be submitted anytime, offering more flexibility for both employers and employees. 

Why Should I Apply for H-1B Cap Exempt Jobs?

H-1B cap-exempt jobs have the advantage of not being restricted by the annual H-1B cap. They also offer the flexibility to file applications at any time throughout the year, unlike the standard process, which only allows applications during specific months. This flexibility makes the process smoother and less complicated.

For example, if you receive a job offer in early September, the standard process would require your employer to wait until April to file your application. Additionally, the earliest you could begin working would be October of the following fiscal year. In contrast, H-1B Cap-exempt jobs bypass this lengthy and exhausting process, providing a more efficient and streamlined alternative.

What are the Pros and Cons of Cap Exempt H-1B?

The Cap-Exempt H-1B visa comes with many advantages that make it a good choice for skilled workers. One of the biggest benefits is that applications can be filed any time of the year, so there’s no need to worry about the H-1B lottery or the deadlines. Also, these visas are not limited by the 65,000 regular cap or the 20,000 U.S. advanced degree cap. Jobs under the exemption are mostly in fields like education, research, or healthcare, which can offer stable long-term career growth. Employers also benefit from the exemption because they don’t need to wait for specific application periods, which makes hiring faster. If someone already has a cap-exempt H-1B, they can switch to another cap-exempt employer easily, which gives them more flexibility. 

There are some disadvantages of H-1B Cap exemption, such as, it is only limited to specific employers. This limits job choices. Most of the jobs are in certain fields like education or healthcare, which might not match everyone’s career plans. 

H-1B Cap Exempt Eligibility: Who Qualifies for a Cap-Exempt H-1B Visa?

Eligibility for an H-1B cap-exempt visa mostly depends on the employer who is offering the job. Employers that qualify for cap exemption are:

  • Institutions of Higher Education
  • Nonprofit Organizations Affiliated with Institutions of Higher Education
  • Government Research Organizations
  • Nonprofit Research Organizations

These types of employers are not limited by the annual H-1B cap or the lottery system, therefore, they can submit their H-1B applications anytime during the year. In some cases, professionals working under joint employment agreements with cap-exempt organizations might also qualify. This flexibility is designed to help fields like education, research, and healthcare attract skilled international workers without worrying about the cap limits.

Which Employers Are Eligible For Cap-Exempt H-1B?

Employers who qualify for a cap-exempt H-1B visa are in specific categories that focus on education, research, and nonprofit work. 

One category includes higher education institutions, like accredited colleges and universities in the U.S. that provide post-secondary education. These institutions are important for supporting academic growth and new ideas.

Another category is nonprofit organizations connected to higher education institutions. These are nonprofits that have formal relationships with universities, such as teaching hospitals or research foundations. Under 8 CFR §214.2(h)(8)(ii)(F)(2), a nonprofit organization is considered affiliated or related to a higher education institution if it meets any of the following criteria:

  • It is part of the same board or federation as the higher education institution,
  • It is controlled by the same board or federation as the higher education institution,
  • It is operated by a higher education institution,
  • It is associated with a higher education institution as a member, branch, cooperative, or subsidiary,
  • It has an official written affiliation agreement with the higher education institution for research or educational purposes and actively collaborates with the institution, with the nonprofit organization’s primary activities directly contributing to the research or educational mission of the higher education institution.

Nonprofit research organizations are also eligible. These organizations focus on doing or supporting basic and applied research, helping with scientific and technological progress. 

Government research organizations at federal, state, or local levels, which focus on different research fields, also qualify for the cap exemption.

In some cases, employers who do not directly qualify for cap exemption can still file for employees working at a cap-exempt location. For example, a company can hire someone to work at a qualifying institution, using the cap exemption indirectly. 

Which Employees and Jobs are Eligible For Cap-Exempt H-1?

Employees and jobs that are eligible for a cap-exempt H-1B visa are usually linked to positions offered by cap-exempt employers. These jobs must be for highly skilled workers in specialty occupations that need at least a bachelor’s degree in a specific field. This helps international professionals bring their skills to important fields without worrying about the H-1B cap.

How Can I Apply for an H-1B Visa as a Cap-Exempt Worker?

Applying for an H-1B visa as a cap-exempt worker involves several steps tailored to the specific requirements of cap-exempt employers. First, identify a cap-exempt employer, such as a university, affiliated nonprofit entity, or a nonprofit/government research organization, offering a role that qualifies as a specialty occupation. Once hired, your employer must file a Labor Condition Application (LCA) with the U.S. Department of Labor to certify the job meets prevailing wage and workplace conditions. After LCA approval, the employer files Form I-129, Petition for a Nonimmigrant Worker, with U.S. Citizenship and Immigration Services (USCIS), indicating the cap-exempt nature of the petition. Supporting documentation, including your qualifications, job details, and evidence of the employer’s cap-exempt status, must accompany the petition. Because cap-exempt petitions are not bound by the annual cap or lottery system, they can be submitted year-round, offering greater flexibility in the application process.

Step-by-Step H-1B Cap-Exempt Application Process

  1. Identify a Cap-Exempt Employer: Search for job opportunities with eligible institutions such as universities, nonprofit organizations affiliated with educational institutions, or nonprofit/governmental research organizations.
  2. Secure a Job Offer: Obtain a formal job offer for a specialty occupation that requires at least a bachelor’s degree and meets your skills and qualifications.
  3. Labor Condition Application (LCA): The employer files an LCA with the U.S. Department of Labor to confirm compliance with prevailing wage requirements and workplace conditions.
  4. Gather Supporting Documents: Provide necessary documents, including your resume, academic credentials, proof of prior work experience, and passport details, to support your employer’s petition.
  5. File Form I-129: The employer submits Form I-129, Petition for a Nonimmigrant Worker, to USCIS, specifying the cap-exempt nature of the petition.
  6. Submit Supporting Evidence: Include documentation proving the employer’s cap-exempt status (e.g., university accreditation or nonprofit designation) and details about the job.
  7. USCIS Processing: Wait for USCIS to review and process the application. Premium processing may be available to expedite the decision.
  8. Approval Notice: Upon approval, receive Form I-797, Notice of Action, as confirmation of your H-1B status.
  9. Apply for a Visa (if abroad): If outside the U.S., schedule a visa appointment at a U.S. consulate or embassy in your country with the approval notice and other required documentation.
  10. Start Employment: Once the visa or your change of status is approved, you can begin working in the cap-exempt role.

Cap Exempt H-1B Visa Processing Time​: How Long Does It Take?

The processing time for a cap-exempt H-1B visa varies depending on several factors, including the workload of U.S. Citizenship and Immigration Services (USCIS) and the specific circumstances of the application. Typically, standard processing can take anywhere from 2 to 6 months. However, employers can opt for premium processing, which guarantees a decision within 15 business days for an additional fee. Other factors, such as the time required for the Labor Condition Application (LCA) approval by the Department of Labor, which usually takes about 7 to 10 business days, can also influence the timeline. 

How Much Does Cap Exempt H-1B Cost?

Fee Type 25 or Fewer Employees More than 25 Employees 50+ Employees (Less than 50% H-1B/L1) 50+ Employees (More than 50% H-1B/L1) Non-Profit Sponsors
Filing Fee $460 $780 $780 $780 $460
Anti-Fraud Fee $500 $500 $500 $500 $500
ACWIA Fee $750 $1,500 $1,500 $1,500 -
Public Law Fee - - - $4,000 -
Asylum Program Fee $300 $600 $600 $600 -
H-1B Lottery Registration Fee $215 $215 $215 $215 $215
Total (Excluding Premium) $2,225 $3,595 $3,595 $7,595 $1,715
Premium Processing (Optional) $2,805 $2,805 $2,805 $2,805 $2,805

Additional Costs

  • Attorney Fees
  • Diploma Equivalency Services:
    • Average Cost: $100

Work with Oguz Law’s H-1B Visa Attorneys

Navigating the H-1B visa process can be complex, especially when exploring cap-exempt opportunities. At Oguz Law, our experienced H-1B visa attorneys are here to simplify the process and provide personalized legal support tailored to your needs. Whether you’re an individual professional seeking employment in specialized fields or an employer looking to hire top international talent, we offer end-to-end guidance, from evaluating cap-exempt eligibility to preparing and filing applications efficiently. With a proven track record in immigration law, Oguz Law is committed to helping you achieve your goals while ensuring compliance with all U.S. immigration regulations. Trust our expertise to make your H-1B journey smooth and successful. Contact us today to schedule a consultation!

Frequently Asked Questions About Cap Exempt H-1B

How Can I Find H-1B Cap-Exempt Jobs?

  • 1. Focus on Cap-Exempt Employers
    Cap-exempt employers include a range of institutions that are not subject to the annual H-1B cap. These employers often include universities, colleges, and affiliated institutions under the category of institutions of higher education. Nonprofit organizations connected to higher education, such as university-affiliated hospitals or research centers, are also eligible. Additionally, nonprofit research organizations dedicated to research activities and governmental research organizations conducting government-funded research qualify for cap exemption.
  • 2. Use Job Boards and Websites
    Finding cap-exempt opportunities can be streamlined through specific platforms and search strategies. On general job boards like LinkedIn, Indeed, or Glassdoor, use keywords such as “cap-exempt H-1B” or “H-1B sponsorship” to narrow down your search. Focus on jobs in universities, nonprofit research institutions, or teaching hospitals. 
  • 3. Target Known Cap-Exempt Employers
    Directly researching and applying to commonly recognized cap-exempt employers can be highly effective. 

Are Hospitals H-1B Cap Exempt​?

Hospitals can qualify for H-1B cap exemption under certain conditions, but not all hospitals automatically meet the criteria. A hospital’s eligibility depends on its organizational structure and its affiliation with educational or research institutions.

Hospitals Likely to Be Cap-Exempt
Nonprofit hospitals affiliated with institutions of higher education are strong candidates for cap exemption. These hospitals typically maintain formal connections with universities or colleges, often through shared governance, ownership, or collaborative agreements for research and training. University-affiliated teaching hospitals are a common example. Nonprofit research hospitals are another category, provided they are primarily engaged in research activities and meet the federal definition of a nonprofit research institution. Additionally, government-operated hospitals involved in substantial research activities may also qualify for cap exemption.

Hospitals Generally Not Cap-Exempt
For-profit hospitals do not qualify for H-1B cap exemption, as they do not meet the nonprofit or research organization criteria. Similarly, independent nonprofit hospitals without a formal affiliation with a university or college are generally not cap-exempt. Nonprofit status alone is insufficient unless the hospital is closely tied to an institution of higher education or primarily dedicated to research.

How Do I Know If My H-1B Job Offer Is Cap Exempt​?

Your H-1B may qualify for cap exemption if your sponsoring employer falls into one of several specific categories. One category includes institutions of higher education, such as universities and colleges, which commonly sponsor positions for professors, researchers, or administrative staff. Another eligible category is nonprofit organizations affiliated with higher education. These organizations are closely connected to universities through shared ownership, governance, or formal agreements like public schools have dual enrollment agreements with universities,  university-affiliated hospitals, or research centers.

Nonprofit research organizations also qualify for cap exemption. These organizations focus on scientific, social, or other types of research and operate on a nonprofit basis. Additionally, U.S. government entities engaged in research activities fall under the category of governmental research organizations.

Certain situations also allow for special cap-exempt status. For example, if you have already been counted under the H-1B cap, you may be exempt from the lottery for future petitions, even if they involve cap-subject employers. 

Concurrent employment is another option, allowing you to work for both a cap-exempt and a cap-subject employer, provided the cap-exempt employer remains your primary sponsor.

The cap-exempt status offers significant advantages, such as bypassing the annual H-1B lottery and allowing petitions to be filed at any time during the year, without the need to wait for the usual April filing season. This flexibility makes it an attractive option for both employers and employees.

Can You Transfer Cap Exempt H-1B?

Yes, transferring a cap-exempt H-1B to another employer is possible, but whether you retain your cap-exempt status depends on the type of employer you’re transferring to.

If You Transfer to Another Cap-Exempt Employer
When transferring to another cap-exempt employer, you can maintain your cap-exempt status without being subject to the H-1B cap. However, the new employer must also qualify for cap-exempt status. Eligible employers include institutions of higher education, nonprofit organizations affiliated with such institutions, nonprofit research organizations, or governmental research organizations.

If You Transfer to a Cap-Subject Employer
Transferring to a cap-subject employer usually means you’ll need to go through the H-1B lottery.

Important Considerations
It’s important to note that an H-1B “transfer” is technically a change of employer petition. The new employer must file Form I-129 with USCIS on your behalf. While the process is similar to filing a new H-1B petition, you do not need to leave the U.S. or stop working as long as the transfer is approved.

Summary

  • Cap-exempt to cap-exempt: No lottery required.
  • Cap-exempt to cap-subject: Lottery may be required.

Can My Family Come to the U.S. If I Get an H-1B Cap Exempt Job? 

Yes, your family can accompany you to the U.S. if you secure an H-1B cap-exempt job. As an H-1B visa holder, you can bring your immediate family—your spouse and unmarried children under 21—on H-4 dependent visas.

Key Points About the H-4 Visa

  • Eligibility: Spouses and children under 21 are eligible for the H-4 visa.
  • Validity: The H-4 visa is linked to the duration of your H-1B visa. If your H-1B is extended, their H-4 visas can also be extended.
  • Work Authorization for Spouses: H-4 visa holders may qualify for an Employment Authorization Document (EAD) in certain situations, such as when the H-1B holder has started the green card process and has an approved Form I-140. This allows spouses to work legally in the U.S.
  • Education: H-4 visa holders can study at schools or colleges in the U.S. without needing a separate student visa.

It’s important to note that whether your H-1B is cap-exempt or cap-subject does not affect your family’s eligibility to join you under the H-4 visa. The application process for their visas remains the same in both cases.

Is the Duration of the H-1B Visa Shorter For Cap Exempt H-1B Jobs​?

No, the duration of the H-1B visa is not shorter for cap-exempt jobs compared to cap-subject jobs. The standard initial duration for an H-1B visa is three years, depending on the period of the job offer, but, regardless of the job type. This period can usually be extended for an additional three years, allowing a total maximum stay of six years, subject to certain conditions.

The cap-exempt status impacts the application process rather than the visa’s duration. Cap-exempt employers, such as nonprofit organizations, research institutions, and universities, are not limited by the annual H-1B cap and can file petitions at any time of the year, bypassing the lottery system.

Extensions, transfers, or changes in employment for cap-exempt H-1B positions follow the same rules as cap-subject H-1B visas. The duration of the visa primarily depends on the nature of the employment agreement and the employer’s willingness to extend the visa within the allowable timeframe.

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