What the New $100,000 H-1B Fee Means for Hiring

On September 19, 2025, the US government announced a sweeping change to the H-1B visa program: a $100,000 fee for new H-1B petitions, on top of existing filing costs. Effective for petitions filed on or after September 21, 2025, this change will reshape how companies access global talent (AP News).The new rule dramatically increases the cost of hiring international workers through US visas. Businesses now face tough questions: How will this affect workforce planning? What are the payroll and compliance implications? And what alternatives exist for accessing global talent without shouldering enormous visa costs?

What’s new with the H-1B fee policy

The policy introduces a $100,000 fee for all new H-1B petitions filed after September 21, 2025 (Manifest Law).It’s important to note what is — and isn’t — included:

Not retroactive: The fee doesn’t apply to petitions filed before the effective date.

Renewals exempt: Existing visa holders seeking extensions are not subject to the new fee.

Uncertainty around transfers: It remains unclear if employer transfers or changes of status will be categorized as “new petitions” (and thus trigger the fee). Legal experts are advising companies to assume the strictest interpretation until further clarification is issued.

In addition, the Department of Homeland Security has proposed changes to the H-1B lottery selection process. Under the proposal, the selection may be weighted to favor applicants with higher salaries, potentially reducing chances for lower-paid roles (SHRM coverage).The stated intent of the policy is to encourage domestic hiring and reduce reliance on foreign workers. But its practical effect will be to put enormous strain on industries — especially tech — that rely heavily on global talent.Industry groups like India’s Nasscom (National Association of Software and Service Companies) have warned the policy could cause major disruptions for IT service providers and US companies outsourcing critical roles.

Implications for businesses

The introduction of the $100,000 fee has wide-ranging consequences that extend beyond simply writing a bigger check.Financial burden: For enterprises hiring dozens of international employees each year, costs could quickly run into the millions. A company bringing on 10 engineers under the H-1B program would now need to budget an additional $1 million just in application fees. Smaller firms and startups, already working with tighter margins, may find H-1B hiring simply out of reach.Reduced access to talent: Many of the world’s brightest graduates pursue career opportunities in the US, often transitioning from student visas to H-1B status. With employers less willing to pay these fees, international graduates may find fewer opportunities available — and some may opt to stay in other markets instead (Times of India).Operational risk and uncertainty: Visa policies are complicated at the best of times. Adding another layer of cost and ambiguity creates risk. If a transfer or change of employer ends up being classified as a “new petition,” companies could face unexpected six-figure costs mid-process. Legal and HR teams will spend more time untangling policy than planning growth.

Payroll, compliance, and HR implications

The new policy highlights how fragile it can be to rely on a single system — like US visa sponsorship — to build a global workforce. Businesses need more resilient payroll and compliance structures.Worker classification challenges: Some companies may attempt to bypass visa costs by engaging international talent as contractors. But misclassification carries severe penalties in many countries, including fines, back-pay obligations, and reputational damage. The long-term risks often outweigh the short-term savings.Complexity of payroll and tax compliance: Hiring employees abroad introduces obligations around tax withholding, statutory benefits, pensions, and reporting. Each jurisdiction has its own rules, and errors can lead to penalties or lawsuits. Managing this without specialist expertise is nearly impossible.Cross-border payments: Paying in local currencies while complying with any applicable exchange laws and ensuring on-time payments adds administrative and financial strain. Global teams often require local banking solutions that go far beyond a simple wire transfer.In short, as visa-based hiring becomes less viable, companies must strengthen global payroll and compliance systems to support distributed teams.

Alternatives to traditional visa-based hiring

Businesses are already exploring alternatives to avoid the high costs and uncertainty of the H-1B system.Distributed workforce models: Many organizations now hire employees where they live rather than relocating them. This approach avoids visas entirely and allows companies to tap into wider global talent pools. The challenge lies in managing compliance across multiple countries, which can be complex and resource-intensive.Employer of Record (EOR) solutions: An EOR legally employs workers on behalf of your company in their home country, without your company having to set up a legal entity. The EOR handles payroll, benefits, tax, and compliance obligations, while you retain day-to-day management. This model is especially effective for companies hiring in new markets where they lack legal entities. Hybrid hiring strategies: For certain roles, companies may still pursue US-based H-1B sponsorship, but they can combine that with distributed hiring to reduce overall exposure to visa costs and risks. This approach balances access to global talent with financial and compliance sustainability.

How Plane solves these challenges

Plane provides companies with the infrastructure they need to hire globally — without the costs and uncertainty of traditional visas.

Avoiding visa costs and delays: Plane enables companies to hire full-time employees in over 100 countries, eliminating the need to navigate costly visa programs or wait for annual lotteries.

Ensuring compliance everywhere: Plane takes care of local payroll, tax contributions, benefits, and employment law requirements. You reduce risk of penalties or misclassification, and your team stays compliant across jurisdictions.

Transparent and predictable pricing: Unlike the sudden $100,000 H-1B fee, Plane offers clear, upfront pricing per employee, allowing for accurate budget forecasting.

Scalability at your pace: Whether hiring a single engineer in Brazil or building an entire design team in Poland, Plane scales with your business without requiring you to set up local subsidiaries.

Improved employee experience: Employees onboarded through Plane receive localized contracts, access to statutory benefits, and timely, accurate payroll. That improves retention and strengthens your employer brand.

What businesses should do now

Companies navigating this new landscape should take proactive steps to adapt.

Audit your current hiring pipeline: Review how many of your planned hires depend on H-1B sponsorship. Identify potential risk points where petitions could trigger new fees.

Model alternative costs: Compare the expense of sponsoring H-1B employees (including legal fees and delays) against hiring globally through solutions like Plane. The cost difference is often dramatic.

Evaluate global hiring infrastructure: If you’re hiring outside the US, ensure you have the tools to manage payroll, compliance, and benefits. Consider whether an EOR is the right fit for your team’s needs.

Strengthen compliance practices: Misclassification is an easy trap to fall into when moving fast. Partner with experts who can ensure your global workforce is managed legally and compliantly.

Communicate with stakeholders: Be transparent with leadership, candidates, and employees about how the fee impacts your hiring strategy and the alternatives you’re pursuing.

Case scenarios

Consider two scenarios:

A mid-sized SaaS company hiring 20 engineers from abroad could now face an additional $2 million in visa fees alone. That doesn’t include legal costs, administrative delays, or the risk of denied petitions. By hiring those same engineers locally with Plane, the company could avoid visa fees entirely while building a distributed, compliant workforce.

A startup planning its first international hire faces a $100,000 fee just to bring on one employee under H-1B. For most young companies, that cost is prohibitive. With Plane, the same hire could be onboarded quickly, legally, and at a fraction of the cost.

These examples show how dramatically the economics of global hiring change under the new rule.

Challenges and how to address them

Distributed hiring isn’t without challenges. Companies must still navigate issues such as:

Labor law complexity: Some countries have stringent rules around termination, benefits, and employee protections. Plane provides local expertise and upfront cost estimates, so you know what to expect before hiring.

Cultural and timezone differences: Managing distributed teams requires thoughtful processes, communication tools, and management practices. Plane helps reduce the legal and administrative barriers so you can focus on integration.

Currency and payment challenges: Payroll involves more than just sending money abroad. Plane ensures employees are paid accurately and on time in their local currencies, while handling tax compliance.

Employee experience: Remote employees expect the same benefits and protections as their peers. By delivering localized benefits and compliant contracts, Plane helps companies maintain strong employee satisfaction and retention.

A turning point for global talent

The $100,000 H-1B fee is not just another bureaucratic cost increase. It signals a fundamental shift in how companies should approach global hiring. Visa sponsorship may still make sense for certain critical roles, but it is no longer a scalable or reliable solution for most businesses.The companies that adapt fastest — by embracing distributed teams, investing in compliance infrastructure, and building global hiring strategies — will gain a competitive advantage. Instead of being trapped by unpredictable immigration policies, they’ll access talent wherever it lives.Plane is purpose-built for this new reality, giving companies the ability to hire anywhere, stay compliant, and build global teams that are resilient to policy shifts.