H-1B Cap-Exempt Eligibility: A Guide for Nonprofits, Schools, and Specialized Employers
When most foreign professionals think of the H-1B visa, their attention immediately goes to the annual quota under the regular cap or the advanced degree exemption. While these categories are important, they are not the only routes available. For many skilled workers, H-1B cap-exempt petitions offer a valuable alternative. Certain nonprofit organizations, educational institutions, and affiliated entities may qualify to bypass the lottery process entirely, making this pathway an attractive option.
How to Identify a Nonprofit for H-1B Cap-Exemption
An organization may qualify as a nonprofit if it is directly affiliated with, or formally tied to, an institution of higher education. This affiliation is not the sole determining factor, but it is a strong starting point when researching whether a potential employer qualifies as a cap-exempt H-1B sponsor.
The clearest indicator is IRS-recognized tax-exempt status for educational or research purposes. Employers that fall into this category often benefit from filing fee waivers as well. One of the most common examples is teaching hospitals affiliated with medical schools. These facilities typically have agreements in place that allow medical students to train and faculty members to benefit from joint programs.
In some cases, primary or secondary schools may also qualify as nonprofit entities. However, these applications are more carefully scrutinized by USCIS, and approval often depends on the strength of the affiliation with a qualifying institution.
Cap-Exempt School Districts
Teachers and administrators may be eligible for H-1B cap-exemption depending on the school district that employs them. For a school district to qualify:
- It must operate as a nonprofit organization.
- It must maintain a formal Affiliation Agreement with a higher education institution, and this document must be provided as evidence.
- It must have had at least one H-1B petition approved under the University Affiliation Numerical Cap-Exemption since 2006, with proof through an I-797 approval notice.
If you are already employed under H-1B status in a cap-exempt district and wish to transfer, your new district must also qualify for exemption and file a transfer petition. If not, your application will be entered into the standard lottery system.
Consulting Firms and For-Profit Sponsors
Even certain for-profit consulting or contracting companies may file cap-exempt petitions. To qualify, the H-1B beneficiary must be placed exclusively at a nonprofit institution of higher education, an affiliated nonprofit entity, or a nonprofit/governmental research organization. This arrangement allows the worker to benefit from cap-exempt status even though the direct employer is a for-profit company.
H-1B Cap-Exempt Criteria
Unlike the capped categories, the H-1B cap-exempt program does not impose annual limits. Petitions can be filed year-round, which makes them highly desirable. However, strict eligibility rules apply.
You may qualify for cap-exemption if:
- You previously held H-1B status and are outside the U.S., but still have unused time within the six-year maximum. Your new employer may file a cap-exempt petition to use the remainder of your stay.
- You are employed by an institution of higher education or a nonprofit entity affiliated with one.
- You work for a nonprofit or governmental research organization directly tied to advancing education or research.
USCIS defines a nonprofit research organization as one whose fundamental activity—not just primary purpose—supports the research or educational mission of an academic institution. Similarly, governmental research entities at the federal, state, or local level may qualify under these guidelines.
The broadened definition allows more nonprofits to be recognized as cap-exempt, even if research is not their main mission but a significant activity of the organization.
Common Types of Cap-Exempt Employers
- Colleges and Universities
- Teaching Hospitals affiliated with medical schools
- Research Laboratories
- Nonprofit Research Units connected to higher education institutions
- Government Research Entities at federal, state, or local levels
Proving Nonprofit Research Status
Organizations must present documentation to establish their nonprofit research qualifications. Commonly accepted evidence includes:
- Certificate of Incorporation
- Mission statements or organizational literature
- Research-related records and publications
Can You Work in a Cap-Exempt Job Through a Cap-Subject Employer?
Yes. Under USCIS guidance, even if your petition is filed by a cap-subject employer, you may work in a cap-exempt role if your position directly furthers the mission of a qualifying cap-exempt institution.
For example, if you are employed by a private company but assigned to a pharmacy on a university hospital campus, your role may qualify if it contributes directly to the hospital’s healthcare mission. However, simply being located on campus is not enough—the position itself must significantly support the institution’s objectives.
Next Steps
The rules governing H-1B cap-exempt eligibility are complex, and USCIS carefully reviews each petition. At Green Card Link, our immigration attorneys specialize in guiding clients through every step of the H-1B process, ensuring applications are backed by strong evidence and positioned for success.
If you believe you may qualify for a cap-exempt H-1B petition—or if you are unsure whether your employer qualifies—contact immigration attorneys at Green Card Link today for a personalized consultation.
H-1B Cap-Exempt Visa Guide: Eligibility, Jobs, and Processing Times
Currently on H-1B Visa Status
If you are currently working under an H-1B nonprofit or cap-exempt status, you are not counted toward the annual cap and may file cap-exempt H-1B petitions. This allows you to extend your stay in the United States, modify your employment terms, and transfer to another cap-exempt employer without being subject to the lottery.
However, if you plan to transition from a cap-exempt employer to a cap-subject employer, you must wait until the next H-1B filing window to be included in the lottery. In most cases, you cannot begin working for the new employer until your petition is approved. Attempting to bypass the cap by using portability after the cap has been reached in a fiscal year may raise concerns with USCIS. In fact, USCIS has clarified that such petitions will only be approved if you, as the beneficiary, were not responsible for ending the cap-exempt employment.
Additionally, under recent policy changes, a proclamation introduced a $100,000 fee for new H-1B petitions. While certain exemptions apply, this adjustment could impact both U.S. employers and foreign professionals. To fully understand how this change may affect you, it’s important to consult directly with an immigration attorney at Green Card Link.
Are H-1B Nonprofit Cap-Exempt Jobs Hard to Get?
Securing a cap-exempt position depends on multiple factors, including your qualifications, professional background, and persistence during the job search. Because the H-1B visa is highly competitive, applicants generally need to demonstrate specialized skills to secure a role.
That said, many institutions successfully sponsor cap-exempt visas. Between 2014 and 2016, organizations such as Samsung Research America, Research Foundation of CUNY, the U.S. Food and Drug Administration (FDA), the Department of Health and Human Services (HHS), and the GE Global Research Center were granted hundreds of H-1B cap-exempt petitions. This makes the cap-exempt pathway a viable alternative for those who were not selected in the H-1B lottery.
How to Find Cap-Exempt H-1B Jobs
Job seekers can benefit from online platforms that specialize in nonprofit and cap-exempt opportunities. MyVisaJobs.com provides listings of H-1B cap-exempt employers along with approval rates. Before applying, always confirm directly with the employer that they qualify as cap-exempt.
Other valuable resources include:
- Guidestar.org – a database of nonprofit organizations.
- Idealist.org – nonprofit job opportunities.
- GovernmentJobs.com – positions within U.S. government agencies that may qualify for H-1B cap-exempt status.
Note: Green Card Link assumes no responsibility for the accuracy of external job sites. Always verify employer eligibility independently.
Benefits of Cap-Exempt Filing
Cap-exempt petitions provide distinct advantages, including:
- No lottery restrictions – petitions are not limited by the annual quota.
- Flexible filing dates – applications may be filed year-round.
- Employment flexibility – you may transfer to another cap-exempt employer after securing your visa.
It is also worth noting that cap-exempt positions are not limited to teaching roles. Universities, hospitals, and research institutions often sponsor positions in fields such as IT, finance, and healthcare.
H-1B Cap-Exempt Processing Times
Processing times vary by case. On average, standard processing takes 3–4 months, while premium processing (for $2,500) reduces the review to 15 calendar days. USCIS will issue one of the following responses:
- Approval Notice
- Denial Notice
- Notice of Intent to Deny (NOID)
- Request for Evidence (RFE)
- Fraud/Misrepresentation Investigation Notice
H-1B Portability Rule Explained
The H-1B Portability Provision allows workers to begin employment with a new employer under certain conditions:
- The new employer files a non-frivolous H-1B petition before your authorized stay expires.
- A valid Labor Condition Application (LCA) accompanies the petition.
This provision protects H-1B workers by allowing them to start working for a new employer before the petition is fully adjudicated, minimizing the risk of falling out of status.
Alternatives to the H-1B Visa
If your H-1B application—cap-subject or cap-exempt—is denied, other visa classifications may offer a solution. Options include the O-1 visa for individuals with extraordinary ability or the L-1 visa for intracompany transfers. Unlike the H-1B, these visas are not capped annually. Because eligibility requirements differ, it’s important to work with experienced immigration attorneys at Green Card Link to identify the best alternative pathway.
H-1B Cap-Exempt Minimum Wage Requirement
According to the U.S. Department of Labor:
- An exempt H-1B worker must earn at least $60,000 per year, or
- Hold a master’s degree or higher in a specialty related to their employment.
These requirements apply to both full-time and part-time employees, with compensation either hourly or annual.
Key Takeaways on H-1B Cap-Exempt Status
The cap-exempt H-1B pathway offers:
- No annual quota limitations.
- Flexible filing and start dates.
- Opportunities across a range of industries beyond academia.
While cap-exempt petitions are highly sought after, eligibility standards are rigorous. To ensure your case is handled correctly, consult an experienced immigration attorney at Green Card Link.