The US has broadened the scope of current H-1B and L-1 visa fees to encompass extension petitions submitted by specific employers, even if foreign professionals remain employed by the same organization.The DHS has broadened H-1B and L-1 visa extension fee rules, requiring specific employers to pay per petition. Effective September 9, this could increase immigration costs and affect companies employing a significant number of foreign professionals. (Representational File Photo)According to a final rule released by the Department of Homeland Security (DHS), affected employers will be required to pay $4,000 for each eligible H-1B petition and $4,500 for each eligible L-1 petition. This rule is set to come into effect on 9 September.The action does not increase the fee amounts but greatly expands the types of petitions to which these fees are applicable. This could lead to higher ongoing immigration expenses for businesses that rely significantly on foreign talent.The regulation is applicable solely to employers with a minimum of 50 employees in the United States, where over half of the domestic workforce collectively possesses H-1B, L-1A, or L-1B status.9/11 Response and Biometric Entry-Exit FeeThese employers will now be obligated to pay the 9/11 Response and Biometric Entry-Exit Fee each time they seek to extend the authorized stay of a covered employee.In the past, the levy was mainly associated with applications for new employment or employer changes. Generally, extensions made by the same company for current employees were exempt from the fee, as long as the separate fraud prevention and detection fee did not apply.Also Read: H-1B visa: US bans four companies from hiring foreign employees; here's why and what Indian applicants need to know“The regulatory changes correct DHS' interpretation of statutory language to require that covered employers submit the 9-11 Biometric Fee for all extension of status petitions, regardless of whether the related fraud prevention and detection fee applies,” DHS stated.Revised petitions that do not aim to prolong a worker's authorized status will continue to be exempt.What if employers are reluctant to pay fee? The financial obligation will be solely on employers. The DHS dismissed suggestions that would permit employees to cover the fee if their employers were reluctant to do so. “The statutes and existing regulations specify that the fee is required to be paid by the employer,” the DHS said.The alteration may have an indirect impact on Indian technology professionals and other skilled workers if employers reassess the financial implications of frequently renewing their visas. During the consultation phase, it was noted that the added costs could deter companies from keeping H-1B employees and could put employees, who are already experiencing prolonged delays for employment-based green cards, at a disadvantage.The DHS rejected these concerns, contending that the fee pertains to a specific group of companies and is relatively minor when compared to salaries, relocation costs, and other expenses associated with hiring foreign professionals.Furthermore, the department said that the demand for H-1B visas has surpassed the annual quota for over ten years and anticipated that the new regulation would not significantly decrease the total number of workers recruited under the program.Will this new rule affect Indian H-1B holders?The proposal holds significant importance for Indian professionals, as Indian nationals represent the largest proportion of H-1B visa holders in the United States.USCIS statistics reveal that Indians constitute nearly 70% of the approximately 85,000 H-1B visas granted annually. Additionally, there is a substantial population of Indian professionals in the US awaiting permanent residency. According to the USCIS data referenced in the report, approximately 1 million Indians are presently entangled in the green card backlog in the United States.However, the DHS dismissed the claim that the rule discriminates against individuals from specific countries. It clarified that Congress established the requirement for certain petitioners to pay biometric fees, and that Green Card applications and their associated backlogs are not included within the purview of this rule.What implications does this have for H-1B workers?Currently, there are no immediate changes for individuals who possess H-1B or L-1 visas. Existing visa approvals continue to be valid, and the proposed extension fee has not yet been enacted.The regulation is still pending finalization, with the US government’s regulatory agenda suggesting that a conclusive decision is anticipated in the upcoming weeks.Should the regulation be approved, companies may incur an additional cost of $4,000 each time they submit an eligible H-1B extension petition and $4,500 for an eligible L-1 extension.This could increase expenses for companies wishing to retain foreign workers on their payroll, potentially affecting their hiring and visa renewal decisions.