Strategy & Planning

H-1B Cap-Exempt Employers: No Lottery Required

Which employers are H-1B cap-exempt and don't require lottery selection. Universities, nonprofits, research organizations, and how to find them.

Last updated: April 2026 · Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Consult a licensed immigration attorney.

In This Guide

  1. What Are Cap-Exempt Employers?
  2. Types of Cap-Exempt Employers
  3. Finding Cap-Exempt Employers
  4. Cap-Exempt to Cap-Subject Transfer
  5. Frequently Asked Questions

What Are Cap-Exempt Employers?

Cap-exempt employers can file H-1B petitions year-round without being subject to the 85,000 annual cap or the H-1B lottery. This is a significant advantage — while cap-subject employers must wait for the March registration period and lottery selection, cap-exempt employers can sponsor H-1B workers at any time.

Types of Cap-Exempt Employers

The following employers are H-1B cap-exempt: Institutions of higher education (universities and colleges). Nonprofit entities related to or affiliated with institutions of higher education. Nonprofit research organizations. Government research organizations. Additionally, workers being employed at (but not necessarily by) a qualifying institution may qualify for cap exemption. This means a consulting company placing a worker at a university research lab may qualify, though this is a complex area of law.

Finding Cap-Exempt Employers

Look for H-1B opportunities at: major research universities, teaching hospitals and medical schools, nonprofit research institutes (Battelle, MITRE, RAND, etc.), government labs (national laboratories, NASA, NIH-funded institutions), university-affiliated hospitals and clinics, and nonprofit organizations with educational missions. Our employer database can help identify active H-1B sponsors — look for universities and research institutions with consistent filing patterns.

Cap-Exempt to Cap-Subject Transfer

If you hold an H-1B through a cap-exempt employer and want to move to a cap-subject employer (e.g., a private company), you will be subject to the cap. This means you'd need to go through the lottery for the first time. However, you can maintain concurrent employment — work part-time for the cap-exempt employer while filing for a cap-subject employer during the lottery season.

Frequently Asked Questions

Do cap-exempt employees go through the H-1B lottery?

No. Cap-exempt employers can file H-1B petitions year-round without lottery participation. This is one of the main advantages of cap-exempt employment.

Are all nonprofit organizations cap-exempt?

No. Only nonprofits that are related to or affiliated with institutions of higher education, or that are research organizations, qualify for cap exemption. A general nonprofit (e.g., a charity) is not automatically cap-exempt.

Can I transfer from cap-exempt to a regular company?

Yes, but you'll need to be counted against the cap for the first time. This means going through the H-1B lottery. You can maintain your cap-exempt position while applying.

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