H-1B Cap vs Cap-Exempt Employers: What You Need to Know

By ForeignersJob Editorial Team Published: 2026-07-20 Category: H-1B

What is the H-1B Cap?

Each year, USCIS issues 65,000 H-1B visas for cap-subject employers, plus 20,000 for those with U.S. master's degrees. This cap creates the competitive lottery system.

Cap-Exempt Employers

Cap-exempt employers can file H-1B petitions at any time without going through the lottery. These include:

1. Institutions of Higher Education

  • Universities and colleges
  • Research institutions affiliated with universities

2. Nonprofit Research Organizations

  • Government research organizations
  • Independent research institutions

3. Nonprofit Entities Related to Higher Education

  • Organizations formally affiliated with universities

Benefits of Cap-Exempt H-1B

  • No lottery stress
  • Can file at any time of year
  • Faster processing in many cases
  • Can later transfer to a cap-subject employer

Strategy: Cap-Exempt to Cap-Subject

1. Start at a cap-exempt employer (university, research lab)

2. Gain U.S. work experience

3. Later transfer to a cap-subject employer

4. The transfer is cap-exempt if you were previously counted

Find cap-exempt employers on our [sponsors page](/sponsors).

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