Who Pays for H-1B Fees? A Compliance Guide for Employers
H-1B petitions come with real costs, including government filing fees and attorney fees. Some employers may ask employees to pay their own H-1B legal or filing fees to cut costs or because they misunderstand or copy incorrect practices. Employers should understand the regulations governing H-1B-related payments and who is responsible for them, because improper payments can trigger investigation and enforcement actions.
In this short guide, we explain which H-1B fees employers must pay, what the regulations say about shifting costs to employees, and the penalties for violations, so employers can confidently support their H-1B employees.
Fees Associated with H1Bs
H-1B sponsorship typically involves two main categories of costs: government filing fees and attorney fees. Filing fees include the required payments submitted with the H-1B petition and related forms, which vary depending on the type of petition and the employer’s circumstances. Attorney fees generally cover the legal work needed to assess the case, prepare supporting documents, and file the H-1B petition on the employer’s behalf.
H-1B government filing fees are not one-size-fits-all. The total cost depends on the employer’s circumstances, including factors like company size, nonprofit status, and whether the petition is cap-subject, or an extension or change of employer. That said, many H-1B filings commonly include several standard government fees, such as the base petition filing fee, the Fraud Prevention and Detection fee, the ACWIA Labor Training fee, and the Asylum Program Fee.
What Does the Law Say About Who Pays?
H-1B employment is tied to a required wage obligation through the Labor Condition Application (LCA). The LCA is the employer’s attestation to the U.S. Department of Labor (DOL) that the H-1B worker will be paid at least the required wage for the position and work location. The employer must maintain this wage at all times while the employee is working for them under H-1B status.
The regulations state that H-1B filing fees and attorney fees related to an H-1B filing are considered business expenses for the employer and are not authorized deductions for the employee. (20 CFR 655.731(c)(9)(iii)(C) and 20 CFR 655.731(c)(10)(ii)).
Importantly, if the employee pays fees that are considered the employer’s business expenses, the Department of Labor will consider that amount to be an “unauthorized deduction from wages even if the matter is not shown in the employer’s records as a deduction.” (20 CFR 655.731(c)(12)). Improper deductions can prompt a DOL investigation to confirm the employer is complying with the LCA’s wage requirements.
What Happens if an Employer is Caught in Violation?
If an employer requires an H-1B worker to pay fees that are treated as the employer’s business expenses, the Department of Labor will consider that payment as an unauthorized wage deduction. In other words, it can be viewed as a nonpayment of wages. If the issue is identified in an investigation, the employer will be required to correct the violation and face penalties.
The most common remedy is back wages, meaning the employer must pay wages or fringe benefits to any H-1B employee who was not paid the amount required.
Employers may also face civil money penalties. The regulations allow fines of up to $2,364 per violation for the employee paying immigration fees, and up to $9,624 per violation for willful wage-related violations. In more serious cases, an employer may be barred from filing or extending H-1B petitions for a period of time, including at least one year for certain violations. (See 20 CFR 655.810)
Conclusion
Staying compliant with H-1B fee rules does not have to be complicated. When employers understand which costs must be employer-paid and how those payments interact with the LCA wage requirement, they can sponsor talent confidently, protect their workforce, and reduce compliance risk. Meng Law Group works with employers to make H-1B sponsorship straightforward and sustainable. We help employers navigate the more complex parts of H-1B compliance and provide practical guidance when questions come up.
If you need additional advice about a specific situation or fee arrangement, contact our team at Meng Law Group. You may also contact us via phone at (626) 339-9363 or email us directly at info@menglawgrp.com.
_________________________________________
Legal Disclaimer
This article is for informational purposes only and does not constitute legal advice. Reading any content on our website does not create an attorney-client relationship. For legal guidance tailored to your specific situation, consult a qualified immigration attorney.