FY2023 H-1B Denial Rates Rose

A recent report shows higher denial rates for H-1B petitions in FY2023. However, the denial rate remains lower than under the Trump administration. But there is more to this top-level fact. The top H-1B employers didn’t see the same higher denial rate as mid-range employers. It’s thought that U.S. Citizenship and Immigration Services (USCIS) adjudicators became more comfortable denying cases after a May 2020 legal settlement that put an end to restrictive practices.

FY2023 H-1B Denial Rates

For initial cap filings, the denial rate was 3.5% in FY2023. In FY2022, the denial rate for the same filing type was 2.2%, per the National Foundation for American Policy. The majority of the higher denial rate in FY2023 was seen in companies with over 10 H-1B applications and a 10% denial rate or higher. Most of the top 25 companies with the highest number of approved new petitions did not see their denial rates increase.

Under the Trump administration, a series of restrictive policy updates were made. The courts later found those policies unlawful. As a result, the approval rating for initial H-1B petitions increased to 24% in FY2018 and FY2019. FY2020 saw a 13% approval rate for initial employment petitions.

Breakdown of Top New H-1B Visa Approvals

Overall, USCIS approved an estimated 19,000 fewer petitions in FY2023 when compared to FY2022. Backlogs and processing priorities likely affected this outcome. The approved petition is included in the fiscal year of approval, not the fiscal year of filing.

For FY2023, Amazon saw the most approved H-1B petitions for initial employment, at just over 4,000. This was lower than FY2022. Other high H-1B initial employment petition approval companies include Cognizant, Infosys, Google, TCS, Capgemini, and other.

In terms of location, California and Texas were the top states for employers with H-1B initial employment petition approvals in FY2023. New Jersey, New York, Virginia, Illinois, Massachusetts, are additional states with higher approvals received.

The majority of approved new H-1B petitions for FY2023 were for professional, scientific, and technical services. Educational services were second, which includes universities.

Larger Employers, Lower Denial Rates

Employers who file more applications generally see a lower denial rate. It’s believed these organizations have better internal processes and greater access to legal representation, thus reducing errors. Organizations that filed for 101 or more initial employment petitions for FY2023 saw a 1.2% denial rate. Employers who filed for two applications or less saw over 4% denial rate.

H-1B Annual Limit and the U.S. Labor Force

The 85,000 numerical cap for H-1B visas in the U.S. has been reached every year for over two decades. This total represents approximately .05% of the total U.S. labor force. This limit creates significant issues for most technology companies. This is exacerbated by the per-country limit for employment-based green cards. The H-1B is, in general, the only option for highly-skilled foreign workers and international students to work long-term in the U.S. This low annual limit creates an economic drag on technology, health care, and manufacturing industries.

As the FY2025 H-1B petition filing season begins, it’s critical to work with an experienced legal representative to maximize your odds of a successful outcome. Our team of professional and experienced attorneys work directly with their clients to ensure they get the right advice. Contact us to support your FY2025 H-1B filings.