Why won’t many US firms sponsor H1B visas?

There are several reasons why many U.S. companies are hesitant or unwilling to sponsor H-1B visas, especially in recent years. Here's a clear breakdown of the key factors:

1. High Cost and Administrative Burden

• Sponsoring an H-1B visa can cost a company $5,000–$10,000 or more in legal and filing fees.

• Employers must also comply with labor condition filings, audits, and other documentation.

• For smaller companies or startups, these costs and complexities can be significant.

2. Uncertainty in the H-1B Lottery

• Each year, there is a cap of 85,000 H-1B visas, and demand far exceeds supply.

• Employers might spend time and money preparing a petition, only to lose in the lottery.

• This uncertainty discourages companies from investing in candidates who may not get selected.

3. Long Processing Times

• Even with premium processing, visa approval can take weeks to months.

• This makes it harder for companies that need to fill roles quickly.

4. Risk of Denial

• Visa applications can be denied due to minor issues or changing immigration policies.

• Companies are cautious because a denial means they lose both the candidate and their investment.

5. U.S. Labor and Public Relations Concerns

• Some companies fear backlash for hiring foreign workers, especially during times of high domestic unemployment.

• There is a perception (right or wrong) that H-1B workers take jobs from U.S. citizens, leading to PR and political sensitivity.

6. Alternative Talent Pools

• Some companies choose to hire remote international workers or open offshore offices, especially post-COVID.

• This avoids the visa process entirely while still accessing global talent.

7. Internal Policies and Legal Risk

• Larger companies may have strict internal policies around sponsorship.

• Legal and compliance teams may advise against it unless absolutely necessary.

In Summary:

U.S. companies may avoid sponsoring H-1B visas due to the high costs, legal complexity, uncertainty in the process, and potential reputational or operational risks. While some larger tech companies are still active sponsors, many mid-sized and smaller firms prefer hiring candidates who already have work authorization (like OPT, STEM OPT, or Green Card holders).