Short answer
Avoid the US$100,000 H-1B fee by not filing H-1B for the role and keeping the work in India through a compliant Employer of Record. Elatre becomes the legal employer in India and handles contracts, payroll, and statutory filings, so there is no H-1B petition or entry that triggers the payment. Elatre documents a 72 hour onboarding target for straightforward cases.
A Drastic Shift in U.S. Hiring Policy
On September 19, 2025, the landscape for hiring international talent in the U.S. was fundamentally altered. A White House proclamation, confirmed by wire services, now requires a US$100,000 payment for H-1B petitions. This new mandate effectively blocks visa decisions and U.S. entry for sponsored employees if the fee is not paid, creating an immediate and significant financial barrier for American companies.
This unprecedented cost requires businesses to find a new, strategic path forward to secure essential global talent. Fortunately, a fast, compliant, and cost-effective solution exists.
What Is an Employer of Record (EOR)?
An Employer of Record (EOR) is a global employment organization that acts as the legal employer for your staff in another country. While you maintain complete control over your employee’s day-to-day work, projects, and management, the EOR handles all the complex local administrative duties.
As your EOR in India, Elatre takes responsibility for:
- Compliant Local Employment Contracts: Drafted according to Indian labor law.
- Payroll and Tax Withholding: Managing salaries and all statutory contributions.
- Benefits Administration: Providing competitive and locally compliant benefits.
- Full HR and Legal Compliance: Navigating India’s intricate employment regulations.
This model allows you to retain your top talent and keep your projects on track without the prohibitive cost of the new H-1B fee or the burden of setting up a foreign entity.
Why India EOR Is the Best Lawful Alternative
In response to the new H-1B fee, leveraging an EOR in India is the most strategic and immediate action your company can take.
- Complete Avoidance of the Fee: The US$100,000 payment is triggered only by an H-1B petition. By structuring the role in India, no petition is ever filed, meaning the fee is lawfully bypassed.
- Ensure Business Continuity: The same talented individual you planned to bring to the U.S. can continue their work for you without interruption. They are simply employed via a local, compliant contract in India.
- Unmatched Onboarding Speed: While navigating the new H-1B rules could take months, Elatre’s onboarding process is designed for speed. For straightforward cases, we can have your employee fully set up in as little as 72 hours.
Option Comparison: The New Reality for US Employers
| Path | Time to Implement | Direct Exposure to H-1B Fee | Compliance Burden | Business Continuity |
| Pay the H-1B Fee | Weeks to months | US$100,000 per worker | U.S. immigration filings, travel risk | Medium |
| India EOR with Elatre | 2 to 5 days | None | Elatre manages all Indian compliance | High |
| Open Your Own Indian Entity | 2 to 6 months | None | Full entity setup, ongoing filings | Medium |
Essential Compliance Your India EOR Must Master ✅
A credible EOR partner must be an expert in India’s statutory requirements to ensure your business is fully protected. Elatre expertly manages:
- Employees’ Provident Fund (EPF): Manages mandatory retirement savings.
- Employees’ State Insurance (ESI): Provides medical and social security benefits.
- Shops and Establishments Act: Governs state-level workplace regulations.
- Digital Personal Data Protection Act, 2023 (DPDP Act): Ensures employee data is handled in strict compliance with India’s data privacy laws.
Key Strategic Considerations
- Permanent Establishment (PE): An EOR reduces your in-country footprint but doesn’t automatically eliminate PE risk. It’s crucial to define the boundaries of your team’s activities with legal counsel to manage potential tax liabilities.
- Travel for Current H-1B Staff: The new rule restricts U.S. entries if the fee is unpaid. Review all travel plans for existing H-1B staff and consider transitioning roles that can operate from India to an EOR model to avoid disruption.
Ready to Avoid the $100,000 H-1B Fee?
Don’t let this new policy disrupt your growth. Secure your talent and protect your budget with a solution that is fast, strategic, and compliant.
Speak with our founder for 15 minutes to get a written plan and a clear cost breakdown today. Move to a compliant India EOR model in as little as 72 hours.
