H1B Cap-Exempt Employers: Universities, Non-Profits & Research Orgs
How cap-exempt H1B sponsorship works, which employers qualify, and why it's often a faster, less competitive path to H1B status.
1What Is Cap Exemption?
The 85,000 annual H1B cap applies to most US employers. However, certain employers are exempt from this cap and can sponsor H1B workers year-round, without going through the lottery. This is a major advantage for qualifying organizations and workers.
2Who Is Cap-Exempt?
Three categories of employers are cap-exempt: (1) institutions of higher education (colleges and universities), (2) non-profit organizations affiliated or related to institutions of higher education, and (3) non-profit research organizations or government research organizations. The worker must actually work at or for the cap-exempt entity — contract work placed at a for-profit company does not qualify.
3Benefits of Cap-Exempt Status
Cap-exempt employers can file H1B petitions any time of year, not just during the April filing period. There's no lottery — every qualifying petition is adjudicated on its merits. Workers can start immediately upon approval rather than waiting for October 1. This makes cap-exempt H1B a valuable option for anyone who needs to work in the US quickly.
4Trade-offs to Consider
Cap-exempt employers (universities, research institutions) typically pay lower salaries than private-sector tech or finance employers. The work may be more specialized or academic in nature. However, the certainty of no lottery and year-round availability makes this a worthwhile path for many workers, especially recent graduates.
5Portability: Moving to a Cap-Subject Employer
If you get an H1B through a cap-exempt employer, you can later transfer to a cap-subject (private sector) employer without going through the lottery, as long as you maintain H1B status. This is a strategic path: get your H1B through a university, then transfer to a tech company. The transfer triggers USCIS scrutiny, but the lottery is not required.
Frequently Asked Questions
Does a non-profit tech company count as cap-exempt?
Not automatically. Non-profit status alone doesn't qualify for cap exemption. The organization must be a non-profit affiliated with an institution of higher education OR a non-profit or governmental research organization. Non-profit hospitals and charities are generally cap-subject.
Can I work part-time at a university and part-time at a tech company?
With concurrent employment, it's possible but complex. You'd need separate H1B petitions from each employer. The university would file cap-exempt; the tech company would need you to be selected in the lottery (or be counted against the cap via the cap-exempt employer's umbrella if the relationship qualifies).