For employers sponsoring foreign professionals, extending an existing employee’s H-1B or L-1 status has become considerably more expensive under a federal rule that took effect September 9, 2026.
The Department of Homeland Security (DHS) has expanded the existing 9-11 Response and Biometric Entry-Exit Fee to include extension petitions filed by certain employers. Previously, these employers generally paid the additional fee for initial petitions and employer changes, but not for routine extensions for existing employees.
The change means some companies must now pay an additional $4,000 for an H-1B extension or $4,500 for an L-1 extension, even when the employee continues working for the same employer.
Which Employers Must Pay the Additional Fee?
The expanded requirement does not apply to every business sponsoring foreign workers.
An employer is covered when both conditions are satisfied:
It employs 50 or more individuals in the United States.
More than 50% of those U.S. employees hold H-1B, L-1A, or L-1B nonimmigrant status.
Both thresholds must be met.
For example, a company with 60 U.S. employees, including 35 workers in H-1B or L-1 status, would generally meet the requirements. A company with 200 employees but only 40 H-1B and L-1 workers would not.
Employers must count full-time and part-time employees when determining workforce size. The calculation concerns employees in the United States, not the company’s entire worldwide workforce.
What Changed for H-1B and L-1 Extensions?
Before September 9, covered employers generally paid the additional fee when filing petitions for initial H-1B or L-1 classification or certain changes of employer.
Under the new rule, the fee also applies to extension-of-status petitions, including those filed by the same employer for the same employee.
That distinction matters most for companies with substantial foreign professional workforces.
For example, a covered employer filing ten H-1B extensions could incur $40,000 in additional fees beyond other applicable filing costs.
The expansion applies to qualifying petitions postmarked or electronically submitted on or after September 9, 2026.
Are Any H-1B or L-1 Petitions Exempt?
The rule preserves an important exception for amended petitions that do not request an extension of the employee’s currently authorized H-1B or L-1 status.
However, an amended petition that also requests an extension may trigger the additional fee when filed by a covered employer.
Companies should distinguish between a petition that changes employment details and one that also seeks to extend authorized status.
The additional fee is currently scheduled to remain in effect through September 30, 2027, unless Congress extends the requirement.
Why Employers Should Review Their Workforce Numbers
Companies near the 50-employee or 50% threshold should not assume their previous fee calculations remain accurate.
Hiring additional employees, changing workforce composition, or increasing H-1B and L-1 sponsorship can affect whether the business qualifies as a covered employer.
Before submitting an extension, employers should review their U.S. headcount, applicable immigration classifications, and required filing fees.
An incorrect fee submission can be rejected, creating potentially serious problems when an employee’s authorized stay is approaching expiration.
Review Your Sponsorship Costs Before Filing
The expanded fee requirement makes accurate workforce calculations and advance budgeting essential for employers that rely heavily on H-1B and L-1 professionals.
Sharma Law Associates’ immigration attorneys help businesses in New York, California, and across the United States with employment-based immigration petitions, extension filings, and compliance.
If your company is preparing H-1B or L-1 extensions and may meet the covered-employer thresholds, call 646-760-6339, contact us online, or schedule a consultation to review the applicable fees before filing.
