The United States has long relied on the H-1B visa program to bring in highly skilled foreign workers, particularly in technology, healthcare, and finance. However, the White House recently announced a significant policy change — as of September 21, 2025, new H-1B applicants must pay an application fee of USD 100,000.
If this increase stands (it’s currently facing legal challenges), it will significantly jump from the previous application costs, which ranged from USD 2,000 to 5,000. And, while the increase doesn’t impact existing H-1B visa holders, the new higher fee is upending the 2026 budgets of companies across the country.
Now, sponsoring international talent will be next to impossible for many small and mid-sized companies. Even larger companies may find the new costs hard to absorb.
For example, Amazon.com Services LLC and Amazon Web Services Inc. had a combined 12,391 H-1B visa beneficiaries approved in the 2025 fiscal year at a cost of approximately USD 20.65 million. Next year, that same number of visas would cost USD 1.23 billion.
That leaves many employers scrambling and asking: Is there another, more affordable way to tap into international talent? The good news is, yes — partnering with an Employer of Record (EOR).
Key takeaways:
- A major increase in the cost of H-1B visas will make it more challenging for many companies to access the skilled talent they need.
- One way to avoid the costly H-1B application process is to hire employees through an EOR — allowing them to work for your company while remaining in their home country.
- When setting hiring budgets, employers should map out now which positions they think will justify paying the hefty H-1B application fee to relocate workers to the U.S. and which ones they can fill with remote global workers.
EORs Offer Hiring Alternative to H-1Bs
An Employer of Record (EOR) enables companies to legally employ workers abroad without establishing a local subsidiary. The EOR handles payroll, tax withholdings, statutory benefits, and other HR-related tasks.
You manage the day-to-day work and performance of the employee, while the EOR ensures compliance with all local employment laws.
The EOR model offers three significant advantages compared to the H-1B path:
- No sticker shock: Pay one monthly fee per employee, with no “gotcha” government price surprises.
- No relocation costs: Employees work from their home countries.
- Faster onboarding: Skip months of visa processing; workers can start in weeks, or even days.
EORs Assist With Travel & Continuity Risk Management
The announcement of the new H-1B visa regulations created immediate uncertainty. Companies and employees alike wondered:
- Does the higher fee apply to existing visa holders?
- To renewals?
- To workers re-entering the U.S.?
As of this writing, the White House has clarified that the higher fee only applies to new H-1B applications and doesn’t impact existing visa holders, but the rules remain fluid and subject to change.
An EOR can help companies navigate this uncertainty and maintain continuity. If a candidate’s travel plans are disrupted, or changing regulations prevent relocation, an EOR allows you to pivot quickly: the employee can continue working legally in their home country while remaining fully integrated with your team.
This approach ensures that payroll, benefits, and day-to-day operations continue uninterrupted, protecting both the employee and your business from policy whiplash and potential downtime.
Hire Now With an EOR, Relocate Later With an H-1B
The new USD 100,000 H-1B application fee makes immediate relocation cost-prohibitive — especially for positions that could be filled remotely. A company may have found the perfect candidate, but the cost is just too much, especially when considering the possibility that the worker may ultimately not be the right fit.
By working with an EOR, companies can hire the skilled talent they need immediately, while keeping the option open to relocate the employee to the U.S. in the future if the role and circumstances justify the investment.
This approach offers multiple advantages:
- First, it dramatically reduces upfront costs, allowing you to onboard talent without the financial risk of a pricey visa application.
- Second, it gives you time to evaluate the candidate’s performance and cultural fit before committing to the long-term relocation expense. Essentially, you can “test drive” new hires in a compliant and structured way.
Scale Fast and Keep Projects Moving
In addition to the high cost, H-1B restrictions also slow hiring, since the time from application to approval takes an average of 5-7 months. If you’re running a company looking to scale up fast, that’s a problem.
EORs let U.S. companies build global teams fast, without the delays of visa approvals. Instead of waiting months, you can onboard talent in days — from nearby time zones like Latin America to established tech hubs across Europe and Asia — and keep projects moving without missing a beat.
Partnering with an EOR gives you access to top global talent, keeps projects on schedule, and lets you scale strategically without the costs and complexity of opening foreign entities or waiting for H-1B visas.
Beyond the H-1B Lottery: Build Trust with Dual-Track Offers
Some employers worry that they could lose out on a candidate if an H-1B doesn't go through. However, offering EOR employment as a backup to an H-1B approval shows flexibility and commitment, giving candidates confidence that you’ll support them regardless of the outcome.
One strategy is making a dual-track offer that covers both scenarios:
- Track 1: If the H-1B petition is successful, the candidate relocates to the U.S. under sponsorship.
- Track 2: If not selected, the candidate is employed in their home country via an EOR.
This approach shows candidates that the company is committed to working with them regardless of lottery outcomes, which builds trust and strengthens your employer brand.
L-1 Eligibility and the Role of an EOR
If you anticipate eventually relocating a remote employee to the U.S., the L-1 intracompany transfer visa is another pathway. To qualify, the employee must have worked full-time for at least one year with a foreign entity with a qualifying corporate relationship with your U.S. company.
You'll need an existing legal entity in the employee's home country — or be prepared to invest the time and resources to establish one. Employment solely through an EOR typically won't meet L-1 eligibility requirements.
However, an EOR can serve as a bridge by helping you employ the candidate immediately and later transition them onto your own entity, preserving the option for an L-1 transfer down the road.
Other Visa Alternatives to the H-1B
If the H-1B is too cost-prohibitive and for whatever reason your top candidate is unable to work from their home country, there are a few visa options that could offer a viable alternative.
Several regions created visas specifically to attract skilled workers to their countries. If your U.S. company has a foreign subsidiary in another country, that could be your way forward to hire qualified talent without the expense of relocating them to the U.S.
Some potential options include:
- The EU Blue Card is a residence and work permit that allows highly skilled non-EU nationals to live and work in an EU member state for an EU-based employer.
- Germany’s Skilled Immigration Act, implemented in 2020, creates a pathway for qualified professionals from non-EU countries to come live and work in Germany.
A few countries also allow workers to self-sponsor, and give them the ability to work for an employer in any country.
- Qualified professionals can obtain permanent residency without employer sponsorship via the points-based Australia's Skilled Independent Visa (Subclass 189). Once granted, visa holders can work for any employer — including remote companies based anywhere in the world.
- The UAE's Green Visa allows skilled professionals and freelancers to sponsor themselves without employer ties. Tech workers, healthcare professionals, and those in targeted sectors qualify. Once approved, holders can work remotely for companies worldwide.
When to Apply for an H-1B & When to Use an EOR
Undoubtedly there will be some key positions that require employees to work on-site and applying for an H-1B visa may be the best, or only, way to secure talent with the necessary skills. The visa may also be essential to fill certain high-level roles.
For everyone else, it makes more economic sense to default to employing global employees who can work remotely via an EOR.
Even in countries where hiring might be more expensive due to steep taxes and mandatory employee benefits, such as France, where employer taxes top 50%, it will still be significantly cheaper than paying the eye-popping bill for an H-1B application.
Employ a Global Team with RemoFirst
If you’re ready to start hiring your international employees where they are, minus the massive H-1B fees, RemoFirst is here to help. We manage all the details of international employment requirements with pricing that starts as low as $199 per person, per month. This includes:
- Shipping equipment and onboarding
- Managing global payroll in local currencies
- Ensuring compliance with all local employment laws
- Providing locally compliant benefits packages, including health insurance
Ready to start hiring internationally? Book a demo today to get started.
