Cap-Exempt H-1B Visas: New Rules and Opportunities for FY2026

Understanding Cap-Exempt H1B Visas & The New Rules

Cap-exempt jobs are primarily available at specific types of institutions, including nonprofit institutions of higher education, teaching hospitals, and nonprofit or governmental research organizations. The U.S. Department of Labor requires an annual minimum wage of $60,000 for these positions, excluding benefits.

A primary advantage of pursuing a cap-exempt H1B visa lies in bypassing the competitive visa lottery, potentially increasing your chances of visa approval. Additionally, this pathway can provide you with a more predictable and accessible route to work in the United States, fostering career development and opportunities for you to apply your specialized skills in the U.S. workforce.

With the new DHS rule published on Dec 17, 2024, the definition of qualifying cap-exempt organizations has been broadened to include entities where research is a “fundamental activity” rather than just the primary mission. This clarification resolves previous ambiguities and ensures more organizations can qualify for cap exemption.

Key Changes in Cap-Exempt H-1B Rules for FY2026

1. Expanded Definition of Cap-Exempt Organizations:
   Non-profit and government research entities where research is a fundamental activity can now qualify for cap exemption, even if it’s not their primary mission.

2. Beneficiaries Working Indirectly for Cap-Exempt Entities:
   Workers spending over 50% of their time on projects tied to a qualifying organization's research purpose can also qualify for cap exemption.

3. Clarified Employer-Employee Relationship:
   The rule ensures that cap-exempt petitions include clear evidence of the beneficiary’s work benefiting the qualifying organization. Typically, this means the job duties must be directly tied to the institution's core research or educational goals, not peripheral or administrative tasks.

How This Impacts International Students

These changes create new opportunities for international students, especially those on OPT or Day 1 CPT:

• More Organizations Now Eligible to Issue Cap-Exempt H-1Bs
  Under the new rule, a broader range of U.S. employers can now qualify to sponsor cap-exempt H-1B visas for their international workers, such as universities, hospitals, and think tanks. This change is designed to help certain U.S. employers fill critical positions more quickly, and it directly benefits international students too.
• Broader Job Options
  With more institutions now eligible to sponsor cap-exempt H-1B visas, international students have a wider pool of potential employers. Historically, cap-exempt H-1Bs were seen as a backup plan due to the limited number of qualifying organizations. With the expanded eligibility, students can confidently consider these opportunities as a primary option.
• Higher Chances of Securing H-1B Status
  The increased availability of cap-exempt H-1Bs means students have a greater chance of securing work authorization without depending on the competitive lottery. In a way, it helped expand the 85,000 H1B work visa quota.
• Year-round H1B opportunities
  Cap-exempt H-1Bs can be applied year-round, providing students with much-needed flexibility. This is particularly beneficial for those facing immediate work authorization needs or those nearing the end of their F-1 status. 

5 Ways to Find H-1B Cap-Exempt Qualified Jobs in 2025

OK, we’ve discussed how Cap-Exempt H-1B is a game changer for F-1 students seeking visa-sponsored jobs. Now, the question is: where can you find these jobs? Here is some actionable advice for those who are seeking H1B Cap-Exempt qualified jobs:

1. Utilize Specialized Job Portals

Several online platforms are designed to help you identify employers offering cap-exempt positions:

• MyVisaJobs: A comprehensive resource that provides detailed employer profiles, including sponsorship history and cap-exempt status. You can filter searches specifically for cap-exempt roles.
• H1Base: This platform focuses on H-1B opportunities, including cap-exempt positions, and offers tools for creating tailored job applications.
• Path2USA: A resourceful site offering updates on H-1B processes and lists of employers who have previously filed cap-exempt petitions.
• H1BGrader: This website will update the H-1B cap-exempt qualified employer list periodically. If you use the link provided, you'll see the 2024 list. We'd recommend you to book mark it and check it again in 2025, the list will go longer for sure due to the change of rules just published this month.

2. Search University Job Boards

• Check the career pages of universities and colleges.
• Look for openings in research departments, faculty positions, or administrative roles that align with your qualifications.
• Examples include job boards of universities like Stanford, MIT, or state universities with large research budgets.
• Sites for searching jobs within Higher Education: HigherEdJobs, Inside Higher Ed, and The Chronicle of Higher Education

Pro Tips: Start with your own university! Reach out to the career center before exploring opportunities at other institutions. Networking is crucial when searching for jobs in the U.S., and as an international student, your university and alumni network are the perfect places to begin.

3. Explore Research Institutions and Hospitals

Non-profit research institutions and affiliated hospitals often qualify as cap-exempt organizations. Examples include:

• National Institutes of Health (NIH)
• Mayo Clinic
• Howard Hughes Medical Institute
  These organizations typically have robust job boards with frequent openings in diverse roles, especially for STEM graduates.

Interesting Facts: The U.S. healthcare industry, projected to reach $6 trillion by 2025, is rapidly growing due to an aging population and advancements in medical technology. This expansion drives demand for professionals in biotechnology, and pharmaceuticals, with immigrants already comprising 17% of the workforce. The healthcare industry holds great potential for employment, we've written about this in our blog, Day 1 CPT Programs: A Gateway to Healthcare Careers. If you’re interested, take a look! It also contains information about Day 1 CPT programs. If you’re considering a second master’s degree, a healthcare-related major with a Day 1 CPT option is a great choice these days. Additionally, most of these programs are STEM-designated, a crucial factor under the new H-1B final rules.

4. Network in Relevant Industries

Networking can open doors to opportunities that aren’t always advertised:

• Attend industry conferences focused on research and innovation. Cap-exempt employers often recruit talent directly at such events. AllConferenceAlert is a good place to find these conferences in the U.S.
• Join LinkedIn groups related to academic research, healthcare, or non-profit work in your field.
• Reach out to alumni from your school working in cap-exempt institutions for informational interviews and job referrals.

5. Review the USCIS Database

USCIS provides public records of employers who have previously filed H-1B petitions.

• Review these records to identify organizations with a history of cap-exempt sponsorships.
• Cross-reference the employer’s details with their job postings for current openings.

Pro Tips for Success

• Tailor Your Application: Highlight skills and experiences directly relevant to the organization’s mission and the role.
• Understand Employer Needs: Cap-exempt organizations often look for candidates with a strong passion for research, healthcare, or education. Demonstrate how you can contribute to their goals.
• Stay Informed: Follow organizations you’re interested in on LinkedIn or their websites to stay updated on new openings.

Cap-Exempt H1B Application, Is It Easier and Faster than Regular H1B?

Application Timeline

One of the significant advantages of cap-exempt H-1B petitions is the flexibility in timing. Even knowing that, you probably still wonder how long the whole process will take and if the process is faster and simpler than regular H1B. Here's a general timeline:

1. Employer Eligibility Verification:

   • Timeframe: Ongoing
   • Details: Ensure the employer qualifies as a cap-exempt entity, such as an institution of higher education, a nonprofit affiliated with such an institution, or a nonprofit research organization.

2. Labor Condition Application (LCA) Submission:

   • Timeframe: 1-2 weeks
   • Details: File the LCA with the U.S. Department of Labor, attesting to the terms and conditions of employment.

3. H-1B Petition Preparation and Filing:

   • Timeframe: 2-4 weeks
   • Details: Prepare and submit Form I-129, along with supporting documents, to USCIS.

4. USCIS Processing:

   • Timeframe: 2-6 months (can be expedited to 15 days with premium processing)
   • Details: USCIS reviews the petition and issues a decision.

To put it more tangibly, let's look at a successful case: 

Case Study: Transition from OPT to Cap-Exempt H-1B

Background:
Maria, an international student from Brazil, completed her Master's in Biotechnology at a U.S. university. Post-graduation, she began her Optional Practical Training (OPT) in July of that year at an H1B sponsor company. She is on STEM OPT, so technically she has 3 chances to enter the H1B lottery. For the two years she worked at that company, she failed to get an H1B, which made her a bit panicky. She took a pay cut to get a new job at a university-affiliated research center, a cap-exempt employer in the last year of her STEM OPT. 

Process:

• Employer's Decision: After working there for a couple of months. She had the "talk" with her supervisor who was impressed by her work and her experience and helped her find out that the research center could sponsor an H-1B Cap-Exempt visa.
• Application: Since the employer was cap-exempt, they filed the H-1B petition immediately without waiting for the annual cap season. 
• Outcome: Within three months, Maria's H-1B petition was approved, allowing her to continue her research without interruption, when her peers are still waiting for the H1B lottery to start. 
• STEM OPT: What about her unfinished STEM OPT? While applying for H1B, her employer helped her to choose "active by reentry", which means she can use up the 2 months of her left STEM OPT first before activating her H1B.  

RFE Rates: Cap-Exempt vs. Regular H-1B

A Request for Evidence (RFE) is a query from USCIS for additional information before deciding on a petition. While specific RFE rates for cap-exempt versus cap-subject H-1B petitions are not publicly detailed, certain trends are observed:

• Cap-Exempt Petitions: These petitions often involve employers like universities and research institutions, which have well-documented positions and histories of compliance, potentially leading to fewer RFEs. However, if the job duties or beneficiary qualifications are not aligned with the specialty occupation requirements, RFEs can still occur.

• Cap-Subject Petitions: Positions in industries with less clear-cut specialty occupation definitions or employers with less established histories may experience higher RFE rates.

Conclusion on RFE Rate: The likelihood of receiving an RFE depends more on the clarity and completeness of the petition rather than the cap status. Ensuring thorough documentation and clear alignment between the job role and the beneficiary's qualifications is crucial for both cap-exempt and cap-subject petitions.

Salary and Career Advancement Opportunities for Cap-Exempt H1B Jobs

When evaluating H-1B cap-exempt employment, it’s important to consider how salaries compare to cap-subject positions, as well as the minimum wage requirements, average earnings, and potential for career advancement. Historically, cap-exempt H-1B jobs have been seen as a fallback option for work visa seekers, often associated with lower salaries and fewer opportunities for career growth. While there has been some truth to this perception, recent regulatory changes are poised to reshape the landscape, potentially improving both compensation and career prospects for cap-exempt H-1B roles.

Salary Comparisons: Cap-Exempt vs. Cap-Subject Positions

Cap-exempt employers, such as universities, non-profit research organizations, and government entities, often operate with different budget structures compared to private sector companies. Consequently, salaries in cap-exempt positions, particularly in academia, may be lower than those offered by cap-subject employers in the private sector.

With the new rule, more employers are expected to enter the field, increasing competition among them. This could ultimately benefit H-1B workers by driving up salary levels in cap-exempt roles, although it may take some time for these changes to materialize. It is also important to note that while the regulatory landscape may change, the fundamental factors influencing salaries—such as organizational budgets, funding sources, and institutional policies—will continue to play a significant role in determining compensation levels for cap-exempt H-1B positions.

Minimum Wage Requirements

The U.S. Department of Labor mandates that H-1B workers, including those in cap-exempt positions, must be paid the prevailing wage for their specific occupation and geographic location or the actual wage paid by the employer to similarly qualified employees, whichever is higher.

Additionally, there is a general minimum salary threshold of $60,000 per year for H-1B workers. This amount must be paid "free and clear" as cash in hand and cannot include benefits such as health insurance or pension plans. If an employee works full-time for less than a year, they must receive a prorated share of the $60,000.

Average Salaries

Average salaries for cap-exempt H-1B positions vary widely based on factors such as job role, experience, education level, and geographic location. For example, academic roles may offer salaries that are competitive within the education sector but may not match the higher compensation levels found in private industry positions. It's important for candidates to research specific roles and institutions to gain a clearer understanding of expected salary ranges.

Career Advancement Potential

While cap-exempt positions may offer lower initial salaries, they can provide other benefits, including:

• Job Stability: Academic and research institutions often offer greater job security compared to some private sector roles.

• Professional Development: Opportunities for further education, research, and professional growth are prevalent in these settings.

• Pathways to Permanent Residency: Some cap-exempt employers, especially in academia, may offer clearer paths to permanent residency.

Conclusion: A New Era for Cap-Exempt H-1B Visas

The recent updates to the H-1B program, particularly the expanded definition of cap-exempt employers, mark a significant step forward for both U.S. employers and international students. These changes open doors to new opportunities, allowing students and professionals to bypass the lottery system and secure work authorization through year-round applications.

Cap-exempt H-1B roles, while traditionally seen as a backup option, now offer broader job possibilities, higher chances of approval, and pathways to stable employment. They may still come with certain limitations, such as lower initial salaries in some sectors, but the benefits of job security, professional growth, and access to unique fields like academic research and healthcare make them an appealing choice.

For international students, particularly those from countries like India and China where the demand for H-1B visas far exceeds supply, these updates provide an alternative route to achieving career goals in the U.S. By leveraging the new rules, exploring cap-exempt opportunities, and preparing well-documented applications, students can navigate the evolving H-1B landscape with confidence.

Whether you’re at the start of your career or seeking a transition, cap-exempt H-1B jobs could be the game-changer you’ve been waiting for. Stay proactive, use the tools and resources available, and position yourself for success in this new era of H-1B possibilities.