What Is an H-1B Dependent Employer? What It Means for Your Offer, Wage and Job Search
Your offer letter probably won't mention it, but H-1B dependent status changes what your employer must promise the Labor Department before it files for you.
An H-1B dependent employer is a company whose H-1B workers make up a large share of its US workforce: more than 7 H-1B workers if it has 25 or fewer full-time-equivalent (FTE) employees, more than 12 if it has 26 to 50, or at least 15% if it has 51 or more. Being dependent does not change your eligibility or the wage you are owed. It adds recruitment and no-displacement promises to your employer's Labor Condition Application (LCA), unless the LCA covers only "exempt" workers: people actually paid at least $60,000 a year, or holding a master's or higher degree in a related field.
Status line, as of 2026-11-01: the dependency test and the $60,000 / master's exemption are in effect and unchanged. Bills to raise the $60,000 line (S. 5638 / H.R. 10799) are introduced and referred only. The separate $4,000 "9-11" fee on H-1B petitions, extensions included, is in effect for petitions postmarked 2026-09-09 through 2027-09-30, but it uses a different 50/50 test, not dependency.
What does H-1B dependent employer mean?
An H-1B dependent employer is a US employer whose H-1B headcount crosses a fixed share of its full-time-equivalent US workforce, as defined in INA 212(n)(3)(A) and 20 CFR 655.736. The label comes from the Labor Department's LCA rules and rarely appears on an offer letter. It matters because dependent employers make extra recruiting and no-displacement promises unless your LCA is exempt-only.
| US full-time-equivalent employees | H-1B dependent if it employs | Rule |
|---|---|---|
| 25 or fewer | More than 7 H-1B workers (8 or more) | 20 CFR 655.736(a)(1)(i) |
| 26 to 50 | More than 12 H-1B workers (13 or more) | 20 CFR 655.736(a)(1)(ii) |
| 51 or more | H-1B workers equal to at least 15% of FTEs | 20 CFR 655.736(a)(1)(iii) |
Thresholds as of 2026-11-01, from 20 CFR 655.736(a) and DOL Fact Sheet 62C. In effect and unchanged.
How the count works
- H-1B workers count by head; the workforce counts by FTE. Every H-1B worker counts as one, part-timers included. The denominator is the whole US workforce, US and H-1B workers together, in full-time equivalents, leaving out bona fide consultants and independent contractors.
- Full-time means 40 hours a week unless the employer shows a shorter standard week, never fewer than 35. Part-timers count as one-half FTE each, or by total hours worked.
- Related companies can count as one. A group treated as a single employer under the Internal Revenue Code is tested together; an employer that relies on that grouping to conclude it is not dependent must list the entities in its public access file.
- Most employers never calculate. The regulation says status is usually "readily apparent and would require no calculations"; borderline employers can run a quick "snap-shot" test.
An employer must know its status before filing an LCA, petition or extension, recheck it when its workforce shifts, and redetermine it after a merger, acquisition or spin-off.
What extra promises does a dependent employer make?
When an LCA is not exempt-only, a dependent employer (or a willful violator) attests to three extra things, set out in 20 CFR 655.738 and 20 CFR 655.739:
- No direct displacement. It will not lay off a US worker from an essentially equivalent job "within the period beginning 90 days before and ending 90 days after the filing date of an H-1B petition" supported by that LCA.
- No secondary displacement. Before placing you at a client's worksite where there are indicia of an employment relationship (the client controls how you work, sets your hours or can assign you projects), it must ask whether the client has displaced or will displace similarly employed US workers within 90 days either side of the placement. Even after asking, it can be found in violation if the client does. Our guide to in-house sponsorship versus staffing and consulting firms covers client-site work day to day.
- Good-faith recruitment first. Before filing the LCA or any petition or extension it supports, it must recruit US workers by industry-standard methods at pay "at least as great as the required wage to be paid to H-1B nonimmigrants," and offer the job to any equally or better qualified US applicant, a duty the Justice Department enforces.
None of this lowers your pay. Every H-1B worker is owed the higher of the actual or prevailing wage; our plain-English guide to the LCA covers wage levels and the standard attestations.
Willful violators carry the same obligations: employers that DOL or the Justice Department found, within the five years before the LCA, to have committed a willful failure or a material misrepresentation. DOL's H-1B debarment list, "effective as of October 1, 2026", names six willful violators; here is how to check the debarment list before you accept an offer.
What is an exempt H-1B worker?
You are an "exempt" H-1B worker if you meet either test in 20 CFR 655.737: you receive wages "at an annual rate equal to at least $60,000", or you have "a master's or higher degree (or its equivalent) in a specialty related to the intended employment." If every worker on an LCA is exempt, a dependent employer can mark it exempt-only and skip the three extra attestations.
| What people assume | What the rule says | Where it is written |
|---|---|---|
| A $60,000 offer letter makes me exempt | The $60,000 must actually be received in the calendar year. Insurance and pension contributions do not count; a bonus counts only if payment is assured. | 20 CFR 655.737(c) |
| A part-time role at a full-time rate qualifies | No proration for part-time schedules. A part-timer whose actual annual pay is under $60,000 is not exempt on wages. | 20 CFR 655.737(c) |
| Starting mid-year breaks the wage test | Partial years are pro rata ($5,000 a month); someone who resigns after three months must have been paid at least $15,000. | 20 CFR 655.737(c) |
| Any master's degree works | The degree must be in a specialty generally accepted as appropriate for that job. A foreign degree counts if equivalent to a US master's; experience never substitutes. | 20 CFR 655.737(d) |
| Exempt workers get fewer protections | Every H-1B worker, exempt or not, keeps the program's wage, benefits and whistleblower protections, per Fact Sheet 62Q. | Fact Sheet 62Q |
| The employer can decide later | If the exempt-only box is not marked on the LCA, the option is waived for that LCA. | 20 CFR 655.737(e)(3) |
Exempt-worker rules as of 2026-11-01. In effect.
The employer only designates; USCIS decides whether you are exempt when it adjudicates the petition, so your degree or pay must match the box ticked. A US master's in computer science for a software-development role is the kind of match the degree route describes. Unlike the lottery's US master's cap, the exemption accepts a foreign equivalent but insists the field fit the job.
The $60,000 figure is written into the statute (INA 212(n)(3)(B)). S. 5638 and H.R. 10799 would replace it with twice the national average wage index (about $145,600 on the 2025 index); both are introduced and referred and die on 2027-01-03 unless passed. Our explainer on the $140,000 H-1B salary bill covers who it would reach.
Does H-1B dependent status affect my petition?
Not your eligibility, and not your wage. It changes what the employer attests and, if your LCA is not exempt-only, what it must do before filing. The risk is accuracy: "An LCA which does not accurately indicate the employer's H-1B-dependency status or willful violator status shall not be used to support H-1B petitions or requests for extensions" (20 CFR 655.736(g)(1)).
Dependency shows up in two places:
- The LCA. Form ETA-9035, Section H.a, Items 1 to 4: dependent (yes or no), willful violator, exempt-only, and the basis for the exemption ("Wage", "Degree" or "Both"), per DOL's FY2026 Q3 LCA record layout.
- The I-129. Section 1 of the H-1B Data Collection supplement (09/09/26 edition) asks "Is the petitioner an H-1B dependent employer?", whether you are exempt and on which basis, and whether the petitioner has 50 or more US employees with more than 50% in H-1B, L-1A or L-1B status. From 2026-11-09 USCIS accepts only that edition (scheduled, per the Form I-129 page).
Status can change under you. An employer that becomes dependent after filing an LCA marked non-dependent cannot use that LCA for new petitions or extensions; it must file a new one (20 CFR 655.736(d)(5) and (e)). Before an extension or transfer, ask whether a fresh LCA is needed.
Do H-1B dependent employers pay the 9-11 fee?
Only if they also meet a different test. The 9-11 fee (Pub. L. 114-113) is in effect: $4,000 per H-1B petition, extensions included since 2026-09-09, on petitions postmarked through 2027-09-30. It is owed by "covered employers": 50 or more US employees, more than 50% of them in H-1B or L-1 status (Form I-129 page), part-time and full-time employees both counted. Amended petitions that do not seek an extension are exempt, and H-1B1 is excluded. USCIS policy alert PA-2026-16 (2026-10-27) repeats that definition and confirms the fee also reaches L-1 extensions, where it is $4,500. See how the $4,000 fee lands on H-1B extensions.
| Question | DOL H-1B dependency | USCIS 9-11 fee "covered employer" |
|---|---|---|
| Who is in the numerator | H-1B workers, by head | H-1B plus L-1A and L-1B workers |
| How the workforce is counted | US full-time equivalents | All US employees, full-time and part-time |
| Line | 8+ (25 or fewer FTEs), 13+ (26 to 50), or 15% (51+) | 50+ US employees and more than 50% |
| What it triggers | Extra LCA attestations, unless exempt-only | $4,000 per H-1B petition, extensions included |
| Where it shows | LCA Section H.a; I-129 supplement item 1.a | I-129 supplement items 1.d and 1.d.1 |
| Status | In effect | In effect, petitions postmarked through 2027-09-30 |
Comparison as of 2026-11-01, from 20 CFR 655.736, the Form I-129 page, PA-2026-16 and the 09/09/26 Form I-129.
Neither test is the $100,000 payment under Proclamation 11069, which stays in effect on paper until 2027-09-21 while the payment is blocked: USCIS says a court "vacated agency guidance implementing the $100,000 payment requirement," though DHS still plans to collect it if that order is lifted.
Worked example: two employers, two candidates
Take two hypothetical employers. Company X has 300 full-time US employees, 60 of them on H-1B. Company Y has 120 full-time US employees, 70 of them on H-1B or L-1.
| Company X | Company Y | |
|---|---|---|
| H-1B share | 60 of 300 is 20% | Depends how many of the 70 hold H-1B |
| H-1B dependent? | Yes (15% line) | Yes if 18 or more hold H-1B (15% of 120); no if nearly all 70 are L-1 |
| Owes the 9-11 fee? | No (20% is not more than 50%) | Yes (70 of 120 is about 58%), on petitions postmarked through 2027-09-30 |
| Candidate A, STEM OPT, US master's in a related field | Degree route available; exempt-only LCA possible | Same, though it matters only if Y is dependent |
| Candidate B, bachelor's, part-time role paying under $60,000 a year | Not exempt; full extra attestations | Extra attestations only if Y is dependent |
Illustrative scenario as of 2026-11-01, built from 20 CFR 655.736-655.737 and the 9-11 covered-employer definition. The employers are hypothetical.
Put a date on Candidate B. Suppose B already holds H-1B status elsewhere and Company X files a change-of-employer petition on Monday 2027-02-01. X's US recruitment must come before the LCA and petition are filed, and its no-displacement promise covers 2026-11-03 through 2027-05-02, 90 days either side of the filing date (our arithmetic). An exempt-only LCA for Candidate A would carry none of that: same employer, same label, different paperwork.
How do I know if my employer is H-1B dependent?
Ask, then verify on paper. We found no standalone DOL list of dependent employers (checked 2026-11-01); the answer lives on each LCA. Third-party "H-1B dependent employer lists" are usually compiled from the same DOL disclosure files and are only as current as the file they used. The USCIS H-1B Employer Data Hub reports first decisions on petitions, not dependency.
- Ask HR, in writing, whether the petitioning entity is H-1B dependent and whether your LCA would be designated exempt-only, and on which basis.
- Search DOL's LCA disclosure files on the OFLC performance data page. Filter EMPLOYER_NAME for the exact legal name, sort by DECISION_DATE, and read the H-1B_DEPENDENT, WILLFUL_VIOLATOR, SUPPORT_H1B and STATUTORY_BASIS columns on the newest rows. The latest file covers determinations through 2026-06-30 (FY2026 Q3).
- Request the public access file at the employer's principal place of business or the worksite; under 20 CFR 655.760 it must be available within one working day after the LCA is filed. A dependent employer's file includes a summary of its US recruitment and any list of exempt workers; here is what the LCA public access file contains.
- Check DOL's debarment list for willful violators.
- Read the certified Form ETA-9035 (Section H.a, Items 1 to 4) your employer must give you no later than the day you report to work (20 CFR 655.734(a)(3)). It arrives late, so steps 1 to 3 do the work before you sign.
- Ask whether the employer is a 9-11 covered employer if your petition will be postmarked by 2027-09-30; I-129 items 1.d and 1.d.1 record it.
What dependency tells you about an offer, and what it doesn't
Dependency is a headcount ratio, not a rating. A 20-person startup with eight H-1B engineers is dependent; a 100,000-person company at 10% is not. The label tells you the employer has more paperwork when your LCA is not exempt-only, and has promised not to displace US workers around your filing. It says nothing about the job, the manager or pay above the required wage. To judge the offer, look at what the label points toward: whether you would work at a client site, how you are paid between projects, and whether the employer asks you to bear any cost of sponsorship.
Employer behavior is shifting regardless of the label: CRS reported on 2026-10-14 that Cognizant, Infosys and Tata submitted 100%, 91% and 95% fewer FY2027 registrations (CRS Insight IN12747). That is a registration statistic, not a dependency finding; we do not label named employers.
More may change, though nothing here has altered the dependency test. "Reforming the H-1B Nonimmigrant Visa Classification Program" (RIN 1615-AD00) has been under OIRA review since 2026-08-24, text not public; its agenda abstract mentions "greater scrutiny for employers that have violated program requirements, and increasing oversight over third party placements." H.R. 10643 (higher 212(n) penalties) is introduced and referred. EO 14431 (layoffs as an H-1B factor) is in effect as a directive, with no implementing guidance or revised ETA-9035 as of 2026-11-01.
Common mistakes
- Checking the brand, not the petitioner. Dependency belongs to the legal entity that files your LCA, plus any related companies counted with it. Match the legal name on the LCA or petition.
- Trusting an old LCA. Status is declared per filing; an LCA from three years ago does not tell you what the employer will mark on yours.
- Treating the label as a verdict. It is a ratio; the job, placement and pay tell you more.
- Assuming the exemption is automatic. The employer must mark exempt-only on that specific LCA, and USCIS then checks your degree or pay against it.
- Mixing up the tests. Dependency (15%, H-1B only) and the 9-11 fee (more than 50%, H-1B plus L-1) are different laws with different consequences.
Frequently asked questions
What is an H-1B dependent employer?
An employer whose H-1B headcount reaches a fixed share of its US full-time-equivalent workforce under 20 CFR 655.736, meaning more than 7 H-1B workers at 25 or fewer FTEs, more than 12 at 26 to 50, or at least 15 percent at 51 or more. As of November 1, 2026 the test is in effect and unchanged. Unless an LCA covers only exempt workers, dependency adds recruiting and no-displacement promises to it.
How do I know if my employer is H-1B dependent?
Ask HR in writing, then check the H-1B_DEPENDENT column for the employer's exact legal name in DOL's LCA disclosure files (latest release through June 30, 2026), or read its LCAs in the public access file. Status is declared on each filing, so rely on a recent LCA from the entity that would petition for you.
Does H-1B dependent status affect my petition?
Not your eligibility or the wage you are owed. If your LCA is not exempt-only, the employer must recruit US workers in good faith before filing and must not displace US workers from 90 days before to 90 days after the petition. An LCA that misstates dependency cannot support the petition, so accuracy matters.
What is an exempt H-1B worker?
Under 20 CFR 655.737 you are exempt if you actually receive at least $60,000 a year in wages, counting assured cash pay but not benefits, or hold a master's or higher degree, or its equivalent, in a specialty related to the job. USCIS decides exempt status when it adjudicates the petition. As of November 1, 2026 the $60,000 line is in effect, and bills to raise it are only introduced and referred.
Do H-1B dependent employers pay the 9-11 fee?
Only if they also meet a different test. The $4,000 9-11 fee, in effect on H-1B petitions including extensions postmarked September 9, 2026 through September 30, 2027, applies to petitioners with 50 or more US employees and more than 50 percent in H-1B or L-1 status. A company can be H-1B dependent at 15 percent and owe no 9-11 fee.
Who to ask
Your employer's immigration attorney prepares the LCA and petition and can say how yours will be marked, but that attorney represents the employer. For your own status strategy, such as timing a transfer around an extension, talk to a licensed immigration attorney who represents you. On OPT or STEM OPT, your DSO handles SEVIS employment reporting, not dependency questions.
Sources
- eCFR, 20 CFR 655.734, 655.736, 655.737, 655.738, 655.739, 655.760
- DOL, Fact Sheet 62C, Fact Sheet 62Q, debarment list, OFLC disclosure data, LCA record layout
- USCIS, Form I-129, PA-2026-16, H-1B Employer Data Hub
- CRS, Insight IN12747; govinfo, S. 5638; reginfo, RIN 1615-AD00
How we checked this: on 2026-11-01 and 2026-11-02 we read the eCFR text of 20 CFR 655.734, 655.736 to 655.739 and 655.760, DOL Fact Sheets 62C and 62Q, the FY2026 Q3 LCA record layout, the 09/09/26 Form I-129 and its USCIS page, PA-2026-16, CRS Insight IN12747 and the S. 5638 text, and took status labels from the linked official pages.
This is general information, not legal or tax advice. Your own LCA, petition and approval notice govern your case; take questions about them to an immigration attorney, or to your DSO for F-1, OPT and STEM OPT reporting.
Weighing an offer from a company with a large H-1B workforce and want help reading what the paperwork tells you? F1Jobs works with international students and professionals on sponsorship-focused job searches, and we are happy to talk it through.
Frequently asked questions
What is an H-1B dependent employer?
An employer whose H-1B headcount reaches a fixed share of its US full-time-equivalent workforce under 20 CFR 655.736, meaning more than 7 H-1B workers at 25 or fewer FTEs, more than 12 at 26 to 50, or at least 15 percent at 51 or more. As of November 1, 2026 the test is in effect and unchanged. Unless an LCA covers only exempt workers, dependency adds recruiting and no-displacement promises to it.
How do I know if my employer is H-1B dependent?
Ask HR in writing, then check the H-1B_DEPENDENT column for the employer's exact legal name in DOL's LCA disclosure files (latest release through June 30, 2026), or read its LCAs in the public access file. Status is declared on each filing, so rely on a recent LCA from the entity that would petition for you.
Does H-1B dependent status affect my petition?
Not your eligibility or the wage you are owed. If your LCA is not exempt-only, the employer must recruit US workers in good faith before filing and must not displace US workers from 90 days before to 90 days after the petition. An LCA that misstates dependency cannot support the petition, so accuracy matters.
What is an exempt H-1B worker?
Under 20 CFR 655.737 you are exempt if you actually receive at least $60,000 a year in wages, counting assured cash pay but not benefits, or hold a master's or higher degree, or its equivalent, in a specialty related to the job. USCIS decides exempt status when it adjudicates the petition. As of November 1, 2026 the $60,000 line is in effect, and bills to raise it are only introduced and referred.
Do H-1B dependent employers pay the 9-11 fee?
Only if they also meet a different test. The $4,000 9-11 fee, in effect on H-1B petitions including extensions postmarked September 9, 2026 through September 30, 2027, applies to petitioners with 50 or more US employees and more than 50 percent in H-1B or L-1 status. A company can be H-1B dependent at 15 percent and owe no 9-11 fee.