Beginning March 20, 2025, sweeping changes are taking place in the H-1B visa program for both employers and petitioners. The U.S. Department of Labor's Office of Foreign Labor Certification (OFLC) will begin deleting case records more than five years old from the Foreign Labor Application Gateway (FLAG) system. At the same time, the U.S. Citizenship and Immigration Services (USCIS) is rolling out a new application process to increase transparency and fairness.

The OFLC has stated that all Temporary Labor Condition Applications (H-1B, H-1B1, H-2A, H-2B, E-3 visas), Permanent Labor Certification Applications (PERM), and Prevailing Wage Determinations (PWD) will be removed from the FLAG system if they are more than five years old from the date of their final determination. For example, a case that was closed on March 21, 2020, will be erased on March 21, 2025.

Employers should download any such records by March 19, 2025, to avoid loss of access. Employers and legal counsel should move quickly to save necessary records. Failure to download these records before the specified deadline will cause permanent loss of access, which can bar future reference or compliance requirements.

Other than the record deletions, USCIS is also implementing a new electronic registration process for H-1B visa petitions.

This new system is intended to encourage a more equitable selection process by focusing on individual beneficiaries rather than multiple applications by various employers on behalf of the same candidate. Small companies and individuals were at a disadvantage with this practice because large corporations would make multiple applications on the same candidate, increasing the chances of being selected. The new system is meant to give every applicant an equal chance, irrespective of the number of entries in their behalf.

In addition to procedural reforms, the fee for H-1B visa application registration will sharply rise from $10 to $215 per entry.The move is expected to cause employers to be more careful and prudent in their sponsorship choices, which would result in fewer frivolous or repetitive applications. The new system compels employers to register online before they can submit a complete H-1B petition. This is meant to expedite the application process and improve overall efficiency. Employers must adhere to this requirement for them to remain in compliance and avoid delays or issues with applications.

The future reform of the H-1B visa system is a large step in the direction of an open and equitable system. Employers and petitioners alike must stay informed and adapt to these changes in order to navigate the process effectively. Quick action, particularly in the area of keeping on hand older documentation and following new application procedures, is crucial in this changing landscape.