H-1B Transfer Denials: What You Need to Know in 2025 and Beyond
Must-Know Facts
Breaking Update: Former President Trump recently introduced a proposed $100,000 fee for new H-1B petitions. While exclusions may apply, this change could have a major impact on both employers and foreign workers. At Green Card Link, our immigration attorneys explain the exclusions and provide the best strategies for navigating these new challenges.
An H-1B visa transfer allows an H-1B worker to change employers while continuing to maintain valid H-1B status. If a transfer petition is denied, the employer may refile by submitting a new Form I-129 with stronger supporting evidence. Many denials occur due to improper documentation or filing fee errors—issues that can often be corrected with a properly prepared petition. In some cases, a motion to reopen or reconsider may also be filed if new evidence becomes available or if an error was made in the original decision.
Encouragingly, the overall denial rate for H-1B petitions has dropped significantly. USCIS data shows denials declined to just 2.15% in FY 2025, compared to 24% in 2018 and 21% in 2019. This continues the downward trend from 3.5% in FY 2023 and 2.5% in FY 2024.
Even though the FY 2026 H-1B cap season saw 343,981 eligible registrations, demand for these visas remains highly competitive. If you are pursuing an H-1B transfer, it’s essential to understand the process, common pitfalls, and how to respond if your petition is denied.
Understanding H-1B Transfers
An H-1B transfer allows employees already on H-1B status to change employers in the U.S. However, you cannot begin working for your new employer until the transfer petition has been filed and properly processed. While the process is similar to an initial H-1B petition, the key difference is that H-1B transfers are not subject to the annual visa lottery or cap.
H-1B Transfer Procedure
Here are the main steps involved in transferring an H-1B visa:
- ecure a New Job Offer
A valid job offer from a U.S. employer is required before initiating the H-1B transfer process. - Labor Condition Application (LCA)
The new employer must submit a certified Form ETA 9035E to the U.S. Department of Labor. This ensures compliance with wage requirements and workplace standards. - Filing Form I-129
Once the LCA is approved, the employer files Form I-129 with USCIS. Upon receipt, both the employer and employee receive a receipt number and, later, an I-797 approval notice. - Employment Verification
An I-9 Employment Eligibility Verification form must also be completed to confirm the worker’s legal authorization to work. - Supporting Documents
USCIS requires multiple documents, including:- Offer letter from the new employer
- Copy of passport, H-1B visa, and I-94 record
- Copies of prior I-797 approvals
- Pay stubs, tax returns (if applicable), and updated resume
- Educational credentials and professional licenses (if required)
- Offer letter from the new employer
Here are the main steps involved in transferring an H-1B visa:
Common Reasons for H-1B Transfer Denials
Even though denial rates have dropped, USCIS may still deny petitions for the following reasons:
- Employer Issues
Employers must prove they are legitimate, financially stable, and capable of providing specialty occupation work. Evidence such as tax returns, contracts, and lease agreements is essential. - Employee’s Lack of Specialized Knowledge
The role must qualify as a specialty occupation, requiring at least a bachelor’s degree in the field. Supporting evidence such as resumes, degree certificates, and experience letters should be submitted. - Employer–Employee Relationship Concerns
If the beneficiary will work offsite, contracts must clearly show that the petitioning employer controls the employee’s work and pay. - Incorrect Fees
Filing fees change frequently, and errors can result in denial. For FY 2025, the base filing fee is $780 (paper) or $760 (online), with additional required fees, such as:- USCIS Anti-Fraud Fee: $500
- ACWIA Training Fee: $750 (less than 25 employees) or $1,500 (more than 25 employees)
- Public Law 114-113 Fee: $4,000 (for certain large employers)
- USCIS Anti-Fraud Fee: $500
- Prevailing Wage Violations
Employers must pay at least the prevailing wage for the occupation and location. - Past Immigration Violations
Any violations by the employee or employer—such as unauthorized employment, criminal charges, or fraud—can lead to denial. - Improper Delivery
Filing to the wrong USCIS lockbox address or using unapproved delivery services can result in rejection. Always confirm filing addresses and use USPS, UPS, FedEx, or DHL.
H-1B Lottery Overview
While transfers are exempt from the lottery, initial H-1B petitions remain subject to the 85,000 annual cap (65,000 regular quota + 20,000 advanced degree quota). Employers must pre-register their workers, and if selected, have 90 days to file a complete petition.
Why Work with Green Card Link
While transfers are exempt from the lottery, initial H-1B petitions remain subject to the 85,000 annual cap (65,000 regular quota + 20,000 advanced degree quota). Employers must pre-register their workers, and if selected, have 90 days to file a complete petition.
Navigating H-1B transfers requires precision and up-to-date knowledge of U.S. immigration law. The immigration attorneys at Green Card Link provide comprehensive guidance, from preparing strong petitions to addressing denials. Whether you are transferring employers, refiling after a denial, or preparing for the possibility of new government-imposed fees, working with a trusted attorney is the best way to protect your immigration status.
📞 Contact Green Card Link today to discuss your H-1B transfer options with an experienced immigration attorney.
What to Do After an H-1B Transfer Denial
Facing an H-1B transfer denial can be discouraging, but it is not necessarily the end of your immigration journey. The next steps will depend on the specific reasons behind the denial and your long-term goals in the United States.
Steps to Take After an H-1B Denial
- Filing a New Petition: Your employer may file a new Form I-129 petition on your behalf. If your original denial was caused by missing evidence or an error, correcting those mistakes in a new filing may lead to approval. It is highly recommended to work closely with an immigration attorney at Green Card Link to prepare a stronger petition.
- Refiling After Documentation or Payment Issues: If the denial was due to incomplete paperwork or a payment problem, you may be able to refile once the issue is resolved.
- Seeking a New Employer: If your current employer is unwilling to file again, you may explore opportunities with a different employer who is willing to petition for your H-1B transfer.
- Motions to Reopen or Reconsider: In some cases, appealing an H-1B denial is not an option, but you may file a legal motion.
- Motion to Reopen: Used when new evidence becomes available that may change the decision.
- Motion to Reconsider: Used when you believe the officer made an error in applying the law or facts of your case.
Both motions are complex legal processes and should only be pursued with the guidance of immigration attorneys at Green Card Link.
H-1B Denial Grace Period
If your H-1B transfer is denied, your options depend on your I-94 departure date. If your employment is terminated before your H-1B validity ends, you are granted a 60-day grace period to:
- Secure a new employer willing to file an H-1B petition.
- Change your status to another valid visa category.
- Depart the United States.
Remaining past your departure date may place you “out of status,” which can lead to serious consequences, including being barred from re-entering the U.S.
Transferring from Cap-Exempt to Cap-Subject Employers
Many workers ask if they can avoid the lottery by first joining a cap-exempt employer and later transferring to a cap-subject employer. The answer is no.
- H-1B visas filed by cap-exempt employers (such as universities, nonprofit research organizations, or government entities) do not count toward the annual H-1B quota.
- If you attempt to transfer to a cap-subject employer, your petition will still need to go through the lottery process, typically filed on April 1st.
Cap-Exempt Employer Requirements (per USCIS)
- Institutions of higher education
- Nonprofit organizations affiliated with higher education institutions
- Nonprofit research organizations or government research organizations
Cap-Exempt Employer Requirements (per USCIS)
Petitioners may opt for premium processing by filing Form I-907 with their H-1B petition. This reduces the standard six-month processing time to 15 business days. The current USCIS filing fee is $2,805. Premium processing is optional, but many employers choose it for faster decisions.
H-1B Extension Denial vs. Rejection
An H-1B transfer denial is difficult, but you still retain your status until expiration. However, an extension denial may force you to leave the U.S. once your validity ends.
Key Differences:
- Rejection: Occurs when your petition contains technical errors (missing forms, incorrect fees, missing documents). These are usually corrected by refiling.
- Denial: Occurs when USCIS determines your case does not qualify for approval. Resolving a denial may require addressing the underlying issue, filing with a new employer, or pursuing a motion to reopen or reconsider.
Common Reasons for H-1B Extension Denial
- Your position is no longer classified as a “specialty occupation.”
- The employer-employee relationship no longer exists (for example, if you were hired by a staffing agency but now work directly for its client).
- You have committed a violation of your immigration status or certain U.S. laws.
- You have reached the six-year maximum stay under H-1B status.
To reduce risks, always file extension requests well before your H-1B expiration date.
Frequently Asked Questions
Can an H-1B Transfer Be Denied After LCA Approval?
Yes. The LCA is approved by the Department of Labor, while the H-1B petition is adjudicated by USCIS. One approval does not guarantee the other.
Can I Keep Working After an H-1B Transfer Denial?
No. You must stop working for the new employer immediately once USCIS issues the denial. If you still hold valid H-1B status from your previous employer, you may be able to return to your prior position.
Do I Need Permission from My Current Employer to Transfer?
No. However, you must comply with any contractual obligations, such as non-compete agreements, that you signed with your employer.
Can I File the H-1B Transfer Petition Myself?
No. The new employer must file the petition on your behalf.
When Can I Start Working for the New Employer?
You may begin working once USCIS issues a receipt notice for the petition. However, to minimize risk, many applicants wait until final approval before making the switch.
How Green Card Link Can Help
At Green Card Link, our experienced immigration attorneys have guided countless clients through H-1B transfers, extensions, motions to reopen, and complex denial cases. USCIS often issues a Request for Evidence (RFE) before making a final decision, and having strong legal guidance during this stage is critical.
Schedule a consultation with an immigration attorney at Green Card Link to discuss your case and safeguard your ability to live and work lawfully in the United States.