The September 2025 Presidential Proclamation introduced an unprecedented $100,000 supplemental fee for most H-1B petitions filed at U.S. consulates abroad. USCIS later clarified that this fee also applies to H-1B petitions filed for beneficiaries outside the United States, including those who fall out of status and must depart the country to regain H-1B classification. As a result, the stakes for maintaining valid H-1B status while inside the United States have never been higher.

In years past, an H-1B worker who fell out of status—for example, due to a location change without an amendment, or non-payment following a slowdown—could often correct the issue by leaving the U.S. and reentering after consular processing. That option is now significantly more expensive and, for most employers, practically unavailable. The result is that H-1B workers and employers must take status maintenance and LCA compliance extremely seriously.

Timely Amendments Are Essential

One of the most common and easily avoidable causes of H-1B status violations is an uncorrected change in work location. Under longstanding regulations, an H-1B employer must file an amendment petition when the beneficiary’s worksite relocates to a different Metropolitan Statistical Area (MSA) than the one covered by the certified LCA.

Before the proclamation, falling out of status due to an unfiled amendment could often be cured by consular processing. Now, that cure carries a potential $100,000 surcharge—making prevention far more important than remediation. Employers should ensure:

• Every new worksite or remote work location in a new MSA triggers an H-1B amendment filing, even if job duties, title, and salary remain unchanged.
• LCA wage compliance is continuous, with actual wages meeting or exceeding the LCA’s required wage at all times.
• Onboarding, payroll, and HR teams are aligned, so no location change occurs without immigration counsel review.

When Business Conditions Change: Compliance or Termination

If an employer faces reduced workloads, restructuring, or financial pressures such that continuous payment of the required wage is not possible, the company must understand that the H-1B program does not allow unpaid status, reduced hours (unless pre-approved via an amended part-time petition), or furloughs.

Under the proclamation, the consequences of failing to maintain LCA compliance are far more severe. A gap in required wage payment could lead USCIS to determine that the worker failed to maintain status, forcing consular processing for any future H-1B approval—and thus triggering the $100,000 fee.

For this reason, timely termination of employment is now the safest option when ongoing LCA compliance cannot be maintained. Termination:

• Ends the employer’s wage and LCA obligations, reducing DOL/DHS audit risk;
• Provides the H-1B worker a 60-day grace period to remain in the U.S.; and
• Preserves eligibility for a future change of status request without incurring the proclamation fee.

Using the Grace Period Strategically: Changing Status to B-2, H-4, or F-1

The 60-day H-1B grace period is more valuable than ever. It allows a beneficiary to remain in the U.S. legally, continue interviewing, and avoid accruing unlawful presence. If additional time is needed, the worker may file a timely change of status to B-2, H-4, or F-1—depending on their circumstances—to extend lawful presence in the U.S. while searching for a new role. Filing for a change of status:

• Does not require LCA-mandated wages,
• Prevents a status violation,
• And preserves the worker’s eligibility for a new H-1B change of status petition once they secure a new job.

Because the worker remains in the U.S. and maintains lawful status throughout this process, the new H-1B petition would not trigger the $100,000 fee.

Returning to H-1B Status without Exiting the U.S.

Once the beneficiary secures a new position, the new employer may file an H-1B change of employer (transfer) petition requesting an extension of stay if the beneficiary is still within the original 60-day grace period. If the beneficiary has already filed a change of status to B-2, H-4, or F-1 and the grace period has passed, the employer may instead file an H-1B change of status request on their behalf. In either scenario, as long as the beneficiary has continuously maintained lawful status, the petition:

• Is not subject to the $100,000 proclamation fee,
• Allows the worker to resume H-1B status inside the United States, and
• Avoids the need for consular processing altogether.

Conclusion

In this new compliance environment, the most important takeaway is that maintaining valid H-1B status inside the United States is now essential, as even small lapses can force consular processing and trigger the $100,000 supplemental fee. Employers must treat worksite amendments, LCA wage compliance, and timely immigration filings with heightened urgency, ensuring that no location changes or pay disruptions occur without proper review. When business realities make continuous LCA compliance impossible, prompt termination is now the safest course, protecting both the employer and the employee from downstream status problems. For workers, the 60-day grace period and timely change-of-status filings offer a crucial lifeline to remain in the U.S. lawfully while seeking new employment without the burden of LCA wage obligations. And once new employment is secured, an H-1B change of employer petition filed inside the United States will allow the beneficiary to resume H-1B status without incurring the $100,000 fee, provided their status has been properly maintained throughout.

If you would like an individualized assessment of your H-1B compliance risks—whether as an employer or employee—Reddy Neumann Brown P.C. can help you evaluate your options and avoid scenarios that could trigger the additional fee.

By: Rebecca Chen

Rebecca Chen is a Partner at Reddy Neumann Brown P.C. Her representation includes advising clients throughout the nonimmigrant and immigrant visa application process, from initial filing, responding to various requests for evidence, and processing at overseas consulates. Her years of experience in the immigration field have made her a knowledgeable resource for complex business immigration matters.