Learn the H-1B lottery process, cap gap rules, and $100k fee exemption for F-1 students.

Every year, thousands of international students finish their degrees and face a decision: how to stay and build a career in the United States. For many on F-1 student visas, OPT work authorization provides just 12 to 36 months before they must leave or find another path forward.
The F-1 to H-1B transition is the most common route to long-term U.S. work authorization for international students. In fiscal year 2025, approximately 442,000 unique beneficiaries entered the H-1B registration lottery, with many being F-1 students or recent graduates seeking to convert their temporary student status into multi-year employment authorization. Recent policy changes include a $100,000 fee for certain H-1B petitions, though students already in the U.S. on F-1 status remain exempt from this charge.
This guide walks through the full transition process: eligibility requirements, the H-1B lottery system, cap gap protections that keep you legal between OPT and H-1B, processing timelines, and the fee exemption for F-1 students.
Knowing what each immigration status allows is the foundation of planning your transition from student to non-immigrant worker. Both statuses permit you to live and work in the U.S., but with different limitations and benefits.
The F-1 visa is a non-immigrant student visa for academic study at U.S. colleges and universities. During enrollment, F-1 visa holders can access work authorization through Curricular Practical Training (CPT), which requires Designated School Official (DSO) approval and must relate to their major. After graduation, Optional Practical Training (OPT) provides 12 months of employment and requires an Employment Authorization Document (EAD).
Students in STEM (science, technology, engineering, mathematics) fields can apply for an OPT extension, adding 24 months, which requires a new Form I-765 filing, for up to 36 months total work authorization.
The H-1B visa is a work visa for specialty occupations requiring at least a bachelor's degree. Initial status lasts 3 years, extendable to 6 years. Unlike OPT, H-1B visa holders have dual intent, meaning they can pursue an employment-based green card while maintaining status. If employment ends, you receive a 60-day grace period to find new sponsorship.
Understanding the big picture helps you plan ahead. The transition from F-1 to H-1B happens in distinct phases, each with specific timing requirements and stakeholders.
Your employer begins by registering you in the annual H-1B lottery, which typically opens in early March for employment starting October 1. If selected, your employer files a Labor Condition Application with the Department of Labor, then submits Form I-129 to USCIS. USCIS reviews the petition and issues a decision, which can take 2 to 6 months under standard processing or 15 days with premium processing.
During this period, cap gap rules extend your F-1 status and work authorization if your OPT would otherwise expire before October 1. Once approved, you transition to H-1B status on the fiscal year start date and can work for your sponsoring employer for up to three years initially, with the possibility of extending to six years total.
The process requires coordination between you, your employer, your school's international student office, the Department of Labor, and USCIS. Each stage has strict deadlines and documentation requirements that affect your ability to remain in the U.S. legally and continue working.
Before your employer can file an H-1B petition on your behalf, you need to meet several baseline requirements. Understanding these criteria helps you assess your eligibility and prepare the necessary documentation. To qualify for the F-1 to H-1B transition, you must:
The H-1B visa program receives far more applications than available slots each year. Because demand consistently exceeds the annual cap, U.S. Citizenship and Immigration Services (USCIS) uses a random selection lottery to determine which petitions move forward. Understanding how the lottery works and what alternatives exist can help you plan your transition strategy.
Each year, the H-1B registration window opens in early March for employment starting October 1. Your sponsoring employer registers you, and USCIS conducts a lottery. Selection happens in two stages: first from the 20,000 advanced degree pool, then unselected registrations enter the general 65,000 pool.
Cap-exempt employers can file H-1B petitions year-round without lottery selection. These include institutions of higher education, nonprofit research organizations, and governmental research organizations.
If not selected, remain on OPT, try again next year, seek a cap-exempt employer, or explore the O-1A visa. Once selected, your employer files the full petition.
The H-1B application process involves multiple steps coordinated by your sponsoring employer. While you provide documentation and credentials, your employer handles the actual filings with government agencies. Understanding each step helps you prepare the right materials and set realistic expectations for timing.
Step 1: Employer files LCA with DOL
Your employer submits an LCA certifying prevailing wage compliance. Processing takes 7 business days.
Step 2: Employer files Form I-129
Your employer files Form I-129 (Petition for a Nonimmigrant Worker) with USCIS, including the certified LCA, job description, and your credentials.
Step 3: USCIS adjudication
Processing times range from 2 to 6 months. Premium processing guarantees a decision within 15 calendar days for $2,805.
Step 4: Approval paths
Two routes exist: change of status (COS) or consular processing. With COS, your employer requests the status change on Form I-129. Upon approval, you receive Form I-797 (Approval Notice) authorizing employment starting October 1. With consular processing, you attend a visa interview at a U.S. embassy in your home country after petition approval.
Many F-1 students face a critical timing gap: their OPT work authorization expires before the October 1 H-1B start date. Without intervention, this would force students to stop working or leave the United States during the summer months while waiting for H-1B status to begin.
The cap gap extension provides automatic protection for students in this situation. When your employer files a timely H-1B petition requesting change of status, USCIS extends both your F-1 status and work authorization through September 30 or until USCIS makes a decision on your petition, whichever comes first.
Automatic activation: The extension begins automatically once your employer files the H-1B petition before your current OPT expires. You don't need to file a separate application.
Documentation update: Your school's Designated School Official (DSO) issues an updated I-20 with cap gap notation, which serves as evidence of your continued legal status and work authorization.
Employment continuity: You can continue working for your employer without interruption from your OPT end date through September 30, maintaining income and job responsibilities during the transition period.
Status if denied: If USCIS denies your H-1B petition, your cap gap extension ends immediately. You typically receive a 60-day grace period from the denial date to prepare to depart or change to another status.
International travel during cap gap carries significant risk. Leaving the United States terminates your F-1 status and cap gap extension. You cannot re-enter on your F-1 visa, even with a valid cap gap I-20.
To return, you would need your H-1B petition approved by USCIS, then obtain an H-1B visa stamp at a U.S. embassy or consulate abroad before traveling back. This process can take weeks or months, potentially causing you to miss work or the October 1 start date.
If you must travel internationally during this period, consult with your DSO and an immigration attorney to understand the risks and requirements specific to your situation.
No. F-1 students in the United States are exempt from the $100,000 H-1B fee.
In September 2025, the Trump administration introduced this fee for certain H-1B petitions. However, USCIS guidance clarifies that F-1 to H-1B transitions are exempt when the student is physically in the U.S. at the time of petition filing. The fee applies only to foreign workers located outside the United States when the petition is filed. This exemption removes a major financial barrier for international students already in America.
If you're transitioning through the 2026 lottery or any future cycle, the $100,000 fee does not apply as long as you're physically present in the U.S. when your employer files your petition. Your location at the time of filing determines the exemption, not your visa type or nationality.
Knowing processing times helps you plan. Registration to selection takes 3-4 weeks during March. LCA approval requires 7 business days. USCIS processing ranges from 2-6 months standard, or 15 days with premium processing.
For most F-1 visa holders, the timeline runs from April petition filing to August or September approval, with work authorization beginning October 1.
The following table compares key differences between the two statuses.
The period between filing your H-1B petition and receiving approval requires careful attention to immigration rules. Maintaining valid status protects your ability to work in the U.S. and ensures a smooth transition. Violations during this window can jeopardize your petition, trigger removal proceedings, or create problems for future visa applications.
Your F-1 status must remain valid throughout the H-1B petition process. This means continuing to meet all F-1 requirements until your H-1B status begins on October 1 or until you receive approval for change of status.
Report address changes immediately: Notify your school's Designated School Official (DSO) within 10 days of any address change. Federal regulations require this reporting, and failure to comply can result in termination of your SEVIS record.
Update employment information: Inform your DSO of any changes to your employer, job title, or work location while on OPT or STEM OPT. Your employment must remain related to your major field of study to maintain valid status.
Respond to school communications: Check your school email regularly and respond promptly to requests from your international student office. Missing deadlines for I-20 renewals or required check-ins can affect your status.
OPT and STEM OPT have specific unemployment limits you must follow while waiting for H-1B approval.
Standard OPT: You cannot exceed 90 days of unemployment during your 12-month OPT period. Exceeding this limit terminates your F-1 status, even if you have a pending H-1B petition.
STEM OPT: The unemployment limit extends to 150 days total across your entire OPT period, including both the initial 12 months and the 24-month STEM extension. Track your unemployment days carefully, as even unpaid gaps between jobs count toward this limit.
What counts as employment: You must work at least 20 hours per week to be considered employed. Volunteer work and unpaid internships do not count toward maintaining status, even if related to your field.
International travel during certain phases of the H-1B process carries serious consequences that many students underestimate.
During cap gap: Leaving the U.S. terminates your F-1 status and cap gap work authorization immediately. You cannot return on your F-1 visa. To re-enter, you would need an approved H-1B petition and an H-1B visa stamp from a U.S. consulate, which can take weeks or months to obtain.
During pending change of status: If USCIS is reviewing your change of status petition and you travel internationally, USCIS will deny the change of status request. You would need to apply for an H-1B visa at a consulate abroad instead.
When travel is possible: You can travel internationally before cap gap begins (while on regular OPT with a valid EAD and F-1 visa) or after receiving H-1B approval with consular processing. Always consult your DSO before making travel plans during the transition period.
Maintaining complete records protects you if questions arise about your status or work authorization.
Keep copies of all documents: Retain digital and physical copies of your I-20s (including all endorsed versions), EAD cards, I-797 approval and receipt notices, passport stamps, I-94 arrival/departure records, and cap gap documentation.
Employment verification: Save offer letters, employment contracts, pay stubs, and W-2 forms. These prove continuous legal employment and may be needed for H-1B extensions or future green card applications.
SEVIS record access: Regularly check your SEVIS record through your school's international student office to ensure all information is accurate and up to date. Errors in your SEVIS record can cause problems with your H-1B petition or future applications.
Stay informed about your H-1B petition's progress through official channels.
USCIS online account: Create a myUSCIS account to track your case status, receive notifications, and respond to any requests for evidence. Check regularly for updates, especially if you selected premium processing.
Receipt notices: Your employer should receive Form I-797C (receipt notice) confirming USCIS accepted your petition. This document includes your case number for tracking.
Requests for Evidence: If USCIS issues an RFE, work closely with your employer and immigration attorney to respond completely and by the deadline. RFEs commonly request additional documentation about your job duties, qualifications, or employer's ability to pay your salary.
The F-1 to H-1B transition requires coordination across your school's international office, the DOL, and USCIS. Each agency has strict deadlines and documentation requirements. Missing a registration window or filing an incomplete petition can cost you a year of eligibility or affect your ability to remain in the U.S.
Lighthouse helps U.S. employers and international students navigate this process through eligibility evaluation, Form I-129 preparation with legal review, and cap gap timing guidance. Our approach combines experienced case managers with technology built for immigration workflows, providing hands-on support and precise coordination. H-1B visa holders benefit from our ongoing support for extensions and employment-based green card transitions.
An immigration attorney can provide additional guidance for complex situations, such as cases involving a U.S. citizen spouse or multiple prior visa statuses. Start your H-1B evaluation today.
Yes. Your employer files an H-1B petition while you maintain F-1 status. If approved with COS, you transition to H-1B on October 1, remaining in the U.S. throughout. The transition preserves your continuous presence, which benefits future green card applications.
Yes, with a sponsoring employer and specialty occupation job offer requiring a bachelor's degree. Students must go through the lottery unless working for cap-exempt employers. Your employer files an LCA with DOL before submitting Form I-129 to USCIS.
No. Students in the U.S. on F-1 status when the petition is filed are exempt. The fee applies only to foreign workers located outside the U.S. at petition filing. This exemption removes a major financial barrier for international students already in America.
No. If you're in the U.S. on valid F-1 status when your employer files the petition, you're exempt. The exemption is based on your physical location at petition filing, not visa type. This applies regardless of which lottery year you participate in.
Remain on OPT if valid, seek a cap-exempt employer, or try again next year. STEM OPT provides up to 36 months of work authorization, giving you three potential lottery attempts.
Traveling outside the U.S. during cap gap terminates F-1 status. You would need H-1B approval and a visa stamp from a U.S. embassy in your home country before returning.
The 3-to-1 rule allows work experience to substitute for education: three years of progressive experience equals one year of college. Most F-1 students already hold qualifying degrees, making this less relevant for typical transitions.
Yes. The administration introduced a $100,000 fee for certain petitions in September 2025, though F-1 students in the U.S. are exempt. Monitor USCIS announcements for updates affecting your situation.
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