Many U.S. employers exploring cross-border hiring options have recently heard about a new $100,000 H-1B payment requirement and are concerned that hiring Canadian professionals may trigger this cost. In reality, this requirement is not nationality-based and does not apply to most H-1B cases when properly structured.
Understanding when the payment applies and how to plan around it can help employers confidently hire Canadian talent.
The Truth About the “$100,000 Fee”
There is no $100,000 flat fee specifically tied to hiring Canadians on H-1B visas. However, U.S. employers could face penalties or be subject to additional requirements under certain conditions, particularly if they are deemed H-1B dependent or have committed violations under the Department of Labor’s regulations.
There is no automatic $100,000 fee for hiring Canadian workers. The recent requirement arises from federal policy changes affecting certain cap-subject H-1B filings, particularly those involving consular processing for workers outside the United States.
Importantly, this payment is not tied to:
- Nationality
- H-1B dependency
- Standard Department of Labor compliance rules
Instead, it depends on factors such as:
- Whether the worker is inside or outside the U.S.
- Whether the case is filed as a change of status or consular processing
- The timing and structure of the petition
This means many employers can avoid the payment through proper planning.
Strategic Alternatives for Canadian Citizens
Thanks to the U.S.-Mexico-Canada Agreement (USMCA), Canadian citizens have preferential pathways for employment in the U.S., sometimes making the H-1B unnecessary.
1. TN Visa (Treaty NAFTA Professionals)
The TN visa is specifically for Canadian and Mexican professionals in designated occupations (e.g., engineers, accountants, scientists). It is:
- Exempt from the H-1B cap
- No lottery required
- No prevailing wage requirement
- Processed quickly at the port of entry or U.S. consulate
Pro Tip: If the Canadian candidate qualifies for a TN visa, this route is often faster, cheaper, and less regulated than the H-1B process.
2. B-1 in Lieu of H-1B (Temporary Business Visitors)
Though not a long-term solution, in certain short-term business scenarios, Canadians can enter the U.S. under a B-1 visa in lieu of H-1B to perform specific services. This option requires pre-clearance and tight alignment with job scope but may be useful for project-based work.
Best Practices for U.S. Employers
To hire Canadians without triggering large fees or violations:
- Determine if the candidate qualifies for a TN visa before pursuing an H-1B.
- Avoid becoming H-1B dependent, or comply fully with DOL attestation requirements.
- Use experienced immigration counsel to ensure filing accuracy and prevent violations.
- Document all roles, wages, and compliance records to avoid audit risks.
- Stay current on policy updates from USCIS and DOL.
Conclusion
U.S. employers do not have to pay a $100,000 fee just to hire Canadian workers on H-1B visas—this is a myth. The real financial and legal risks arise from noncompliance or H-1B dependency, which can be mitigated with smart planning and proper use of alternatives like the TN visa.
By understanding the rules and leveraging USMCA-based options, employers can access top Canadian talent without costly surprises.
Sources:
Schedule a Consultation with an Immigration Lawyer
We Can Help!
If you have questions regarding H-1B Visas, we invite you to contact our team at Richards and Jurusik for detailed guidance and assistance. We aim to provide the most accurate and up-to-date information to make your immigration process smoother and less stressful. The immigration lawyers at Richards and Jurusik have decades of experience helping people to work and live in the United States. Please read some of our hundreds of 5-star client reviews! Contact us today to assess your legal situation.
REBECCA KROLL is an Associate Attorney at Richards and Jurusik who practices exclusively in U.S. immigration law, focusing on both business and family-based immigration. She assists clients with employment-based visas, marriage and family cases, and the U.S. citizenship process. (Full Bio)
